Federal solar credit ended Dec 31, 2025
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Solar costs · Los Angeles, CA

Solar Panel Cost in Los Angeles, California

Fact-checked by Sorted & Saved data desk
Updated Data verified Nov 5, 2026

Los Angeles gets about 1,677 kWh per kW per year[1] from a rooftop solar array, according to NREL's PVWatts model at the city's coordinates. LADWP's residential customers paid an average of 23.84¢ per kWh[2] and used 485 kWh a month[2]. A system sized to that use, about 3.5 kW est.[1,2], costs roughly $10,000 to $13,500 est.[1,2,3] before incentives, and pays back in about 8 years est.[1,2,3,4] for a cash buyer.

On this page [ 8 ]

Los Angeles solar at a glance

Output per kW of panels1,677 kWh/yr[1]PVWatts, this city
Sunlight on panels6.08 kWh/m²/day[1]Annual average
LADWP avg. price23.84¢/kWh[2]2024 average, bundled customers
LADWP avg. home use485 kWh/mo[2]2024 average
Typical system3.5 kWCovers 100% of use
Typical price$11,600Estimate, before incentives
Year-1 savings$1,390Estimate
Payback8 yearsEstimate, cash purchase
Estimated monthly output of a 3.5 kW system in Los Angeles (PVWatts, typical weather year)kWh / month

LADWP credits exported energy at the retail rate (Net Energy Metering Rider (LADWP, municipal; not subject to CPUC NEM 3.0)). Assumptions: methodology.

How Los Angeles Department of Water and Power treats solar

UtilityExport policyExport creditAvg. residential priceMonthly basic charge
LADWPNet Energy Metering Rider (LADWP, municipal; not subject to CPUC NEM 3.0)Retail rate (net metering)[4]23.84¢ per kWh[2]n/a

Los Angeles Department of Water and Power: Net Energy Metering Rider (LADWP, municipal; not subject to CPUC NEM 3.0)

LADWP still uses net energy metering. If your system produces more than you use in a billing period, the excess is credited at your rate schedule's energy price. Credit balances carry forward to later bills, except taxes and minimum charges. Any credit left when you close the account is zeroed out, and credits apply only to the meter that measured the excess.

  • Power Access Charge (fixed monthly charge, standard rate R-1A): $2.30 (Tier 1), $7.90 (Tier 2) or $22.70 (Tier 3) per month, set by your highest monthly use over the past 12 months and reset each October 1. The R-1A minimum charge is $10/month plus adjustment factors. The R-1B time-of-use rate has a $12.00/month service charge.[5]
  • How the Power Access Charge tier is set: The tier is based on your highest monthly energy use in the past year and zone. It is recalculated every October 1.[6]

Permits and local programs in Los Angeles

  • Utility export rules: Most of the city is served by LADWP, a municipal utility. It still uses net energy metering, crediting excess generation at the rate schedule's energy price, and is not on the CPUC Net Billing Tariff.[4]
  • Get paid to host solar: LADWP's Solar Rooftops program installs a 1-10 kW system that LADWP owns. Owner-occupants receive $360-$900 per year for up to 20 years.[7]
  • Low-income solar + battery incentive: LADWP administers SGIP Residential Solar and Storage Equity for income-qualified customers, but the program is on a waitlist and funding is not guaranteed.[8]

Los Angeles solar cost by system size

SystemPrice before incentives[3]After incentiveskWh in year 1[1]Year-1 savings[2][4]Payback (years)
4 kW$13,200$13,2006,710$1,3909
6 kW$19,800$19,80010,060$1,39012
8 kW$26,400$26,40013,420$1,39016
10 kW$33,000$33,00016,770$1,39019
12 kW$39,600$39,60020,120$1,39022

Incentives for Los Angeles homeowners

Federal · tax creditEnding soon

Business credit for leased and PPA systems (48E)

Claimed by the system owner, not the homeowner; solar must begin construction by July 4, 2026 or be in service by December 31, 2027[9]

If a company owns the panels on your roof (a lease or power purchase agreement), that company may claim the business clean electricity investment credit and can reflect it in your price. You cannot claim it yourself.

Who
Third-party-owned systems (leases and PPAs). Ask the provider whether the price assumes this credit.
Deadline
December 31, 2027
Checked
November 5, 2026
State · tax exemptionEnding soon

Active solar energy system new-construction property tax exclusion (Rev. & Tax. Code 73)

Adding an active solar energy system (including storage devices that are part of it) is not treated as 'new construction', so it does not raise the assessed value. Ends January 1, 2027. Systems that qualify before then stay excluded until the property changes hands.[10]

Subd. (i)(2): systems that qualify for an exclusion before January 1, 2027 continue to be excluded until there is a subsequent change in ownership. Subd. (g) says the section applies to lien dates for fiscal years 1999-2000 through 2025-26. The leginfo cross-reference list shows no 2026 chaptered bill amending section 73. The BOE analysis of SB 710 (https://boe.ca.gov/legdiv/pdf/0710sb090525ml.pdf) says 'any solar installation post January 1, 2027 would be considered new construction and would…

Who
Owners who add an active solar energy system to property. The system must qualify before January 1, 2027. The exclusion lasts until the next change in ownership.
Deadline
January 1, 2027
Checked
November 5, 2026
State · rebateAvailable

Disadvantaged Communities - Single-family Solar Homes (DAC-SASH)

$3/watt incentive for rooftop solar for income-qualified homeowners in disadvantaged communities[11]

Budget: '$120 million total ($10 million per year 2019 - 2030)'. SDG&E's Solar Billing Plan page still lists DAC-SASH as a current assistance program. I could not confirm current intake on the administrator page (gridalternatives.org returned 403).

Who
Income-qualified (CARE/FERA-eligible) single-family homeowners in CalEnviroScreen disadvantaged communities or San Joaquin Valley pilot communities, in IOU territory. GRID Alternatives administers the program.
Deadline
Program budget is $10 million per year for 2019-2030 ($120 million total).
Checked
November 5, 2026
State · rebateWaitlist

SGIP Residential Solar and Storage Equity (RSSE)

$1.10/Wh for storage plus $3.10/W for solar (current step 6), for low-income households[12]

The CPUC budget table lists RSSE at 'Storage: 1,100' ($/kWh) and 'Solar: 3,100/kW'. Rates and status were confirmed on the SGIP step tracker (https://www.selfgenca.com/home/program_metrics/) as of 11/5/2026, which lists 'Solar $3.10/W' and 'Energy Storage $1.10/Wh' at Step 6. RSSE AB 209: CSE, SCG and LADWP on Waitlist. AB 209 Non-POU: SCE and PG&E on Waitlist. AB 209 POU: SCE 'Open' ($1,000,000 available), PG&E Waitlist. RSSE Ratepayer: Closed in all four IOU territories. The $280M figure is…

Who
Low-income residential customers installing paired solar and storage. The CPUC has authorized $280 million for this budget.
Deadline
Ends when funds run out. As of 11/5/2026 the AB 209 sub-budgets are on waitlist in most administrator territories.
Checked
November 5, 2026
State · rebateAvailable

Solar on Multifamily Affordable Housing (SOMAH)

Up to $3.50 per AC watt for capacity serving tenants and $1.19 per AC watt for common areas[13]

Activity status comes from https://calsomah.org/ ('175+ apps in 2026, on pace for a post-launch record'). The CPUC page says the budget is 'up to $100 Million annually, collected through June 2026'.

Who
Owners of multifamily affordable housing properties. This is not a program for single-family homeowners.
Deadline
Funding was collected through June 2026. The program reports 175+ applications in 2026. Integrated storage incentives are paused (waitlist) in PG&E and SDG&E territories.
Checked
November 5, 2026
Utility · rebateWaitlist

LADWP Self-Generation Incentive Program (Residential Solar and Storage Equity)

State SGIP RSSE incentives for income-qualified LADWP customers: $3.10/W solar plus $1.10/Wh storage (step 6). Waitlist.[8]

The SGIP step tracker (https://www.selfgenca.com/home/program_metrics/) shows LADWP 'Residential Solar and Storage Equity - AB 209' at Step 6, Waitlist, as of 11/5/2026.

Who
Single-family households at or below 80% of Area Median Income, or qualifying deed-restricted low-income multifamily properties, in LADWP territory. The project must include both solar and storage, or add storage to existing solar.
Deadline
Ends when funds run out. LADWP says it cannot guarantee that waitlisted customers will receive an incentive.
Checked
November 5, 2026

Every California incentive →

FAQ

Frequently asked questions

How much do solar panels cost in Los Angeles?

About $11,600 est.[1,2,3] before incentives for a 3.5 kW est.[1,2] system, using California's median installed price of $3.30 per watt est.[3]. Get at least three written quotes; prices for the same system often differ by thousands of dollars.

How does LADWP pay for solar I send to the grid?

LADWP uses Net Energy Metering Rider (LADWP, municipal; not subject to CPUC NEM 3.0): exported energy offsets what you buy at the retail rate, with details on our California net metering page.

How long is the payback for solar in Los Angeles?

Our model estimates about 8 years est.[1,2,3,4] for a cash purchase, with year-one savings of about $1,390 est.[1,2,4]. Financing, a battery or a different rate plan changes this; the calculator lets you test each.

sources

[ 13 ]

Every number on this page links to one of these sources. Dates show when we last checked each one.

  1. NREL/NLR PVWatts v8 (1 kW-DC, fixed roof mount, 20° tilt, south-facing, 14% losses, TMY weather)pvwatts.nlr.gov · checked Nov 5, 2026
  2. EIA Electric Sales, Revenue, and Average Price 2024, Table 6: Utility bundled retail sales, residentialeia.gov · checked Nov 5, 2026
  3. U.S. Distributed Solar and Storage 2026 Data Update (Barbose, Darghouth, O'Shaughnessy, Forrester), Berkeley Labeta-publications.lbl.gov · checked Nov 5, 2026
  4. LADWP: Net Energy Metering Rider (LADWP, municipal; not subject to CPUC NEM 3.0)ladwp.com · checked Nov 5, 2026
  5. LADWP: Power Access Charge (fixed monthly charge, standard rate R-1A)ladwp.com · checked Nov 5, 2026
  6. LADWP: How the Power Access Charge tier is setladwp.com · checked Nov 5, 2026
  7. Los Angeles: Get paid to host solarladwp.com · checked Nov 5, 2026
  8. Los Angeles: Low-income solar + battery incentiveladwp.com · checked Nov 5, 2026
  9. Public Law 119-21 - Sec. 70513(a) and (g)(5) (48E); Sec. 70512(a) and (l)(4) (45Y)govinfo.gov · checked Nov 5, 2026
  10. California Revenue and Taxation Code section 73 (as amended by Stats. 2025, Ch. 328, SB 710)leginfo.legislature.ca.gov · checked Nov 5, 2026
  11. CPUC - Solar in Disadvantaged Communitiescpuc.ca.gov · checked Nov 5, 2026
  12. CPUC - Self-Generation Incentive Program (SGIP)cpuc.ca.gov · checked Nov 5, 2026
  13. CPUC - Solar on Multifamily Affordable Housing (SOMAH) Programcpuc.ca.gov · checked Nov 5, 2026

City data last re-checked November 5, 2026.