Solar power in Los Angeles, California
For those lucky enough to live in LA, you are eligible for some top notch incentives. With net metering and a large federal tax credit, solar is financially a no brainer.
Payback periods for installing solar panels in LA are usually between 5-7 years which is fantastic when you consider the minimum warranted life of solar panels is 25 years.
The savings are a little less than customers with the investor-owned utilities in other parts of California, but this is simply because LADWP offers lower electricity rates than the investor-owned utilities.
However, at the time of writing LA Department of Water and Power (LADWP) offers an upfront rebate to help cover some of the installation cost of installing solar power, which the investor owned utilities no longer offer.
LA homeowners are also lucky when it comes to solar because they were not covered by the NEM 2 net metering changes that apply to customers of the three big investor owned utilities. At the time of writing this means that you can stay on tiered rates.
With threats to net metering being made every day, all California residents need to get into solar before these brilliant incentives disappear. It is also important to remember that the federal solar tax credit has already dropped from 30% to 26% in 2020, and only has a couple of years to run as well.
Here is a link to a LADWP video to help explain how your electricity bill will look after solar.
The average cost of installing residential solar panels in Los Angeles,
California in 2024 is
$2.72 per watt. The average system size
in the US is 6 kilowatts, which means the average price of a solar system
in Los Angeles, CA
is $13,600.
(after claiming 26% tax credit and other rebates)
The 26% federal solar tax credit explained
If you have a federal income tax liability, 26% of the cost of your solar system can be claimed as a deduction to your taxes. This incentive is claimed when you do your taxes. In order to receive the tax credit quicker it's best to do your taxes as soon as possible after installation.
What if my tax liability is less than 26% of my systems costThere is the option to claim this incentive over several years if your tax liability is less than 26% of the system cost.
How much will solar panels on my home save me?
The answer to this question depends on your electricity usage. Generally speaking the greater your power usage the greater the potential savings from installing solar.
The average monthly usage in California is only 573kWh per month however, you are most likely using a lot more than this since this average includes condos and small apartments.
The Los Angeles solar panel savings calculator below will convert your monthly power spend into power usage (in kWh's) and then work out exactly how many solar panels you need to offset your usage, how much they will cost based on the prices of local solar companies and the amount you will save. Our California solar savings calculator can do this because it contains a database of the electric rates charged by City of Azusa, City of Burbank Water and Power, City of Glendale, City of Pasadena, City of Vernon, LADWP (City of Los Angeles), Southern California Edison Co
How much can solar panels save you in Los Angeles
What does the cost of a real solar system look like?
Facts about installing a 11.78kW solar system in Los Angeles, CA
This system would offset 100% of your energy usage if your typical monthly bill is $270, however your situation may vary so try our Los Angeles solar calculator to get a result tailored to you.
$21,793
Net cost of system
6 Years
Average payback time
17,802 kWh
Annual power production
5¢/kWh
Levelized cost of solar energy
32¢/kWh
If you don't get solar
Cash flow graph based on cash purchase of this 11.78kW system
Life-time savings on this system over the next 25 years
$112,719
(Prices shown after repayments of capital)
282
Solar companies in Los Angeles, CA that provide pricing through the SolarEstimate marketplace.
Average total cost of solar panel installation in Los Angeles
| System Size |
Cash purchase After 26% solar tax credit |
Financed purchase After 26% solar tax credit |
|---|---|---|
| 3kw | $6,416 | $6,929 |
| 4kw | $8,377 | $9,047 |
| 5kw | $10,286 | $11,109 |
| 6kw | $12,077 | $13,043 |
| 7kw | $13,831 | $14,937 |
| 8kw | $15,451 | $16,687 |
| 9kw | $17,050 | $18,414 |
| 10kw | $18,500 | $19,980 |
Find out what system size you need for your home
Going solar in California
Check out all of the ways energy providers of California can help you be more energy efficient and save money.
The following programs are available:
| Incentive Name | Eligibility | Type |
|---|---|---|
| Residential Renewable Energy Tax Credit | Federal | Personal Tax Credit |
| Property Tax Exclusion for Solar Energy Systems | State | Property Tax Incentive |
| Sonoma County - Energy Independence Program | Local | PACE Financing |
| NEM 2.0 | State | Net Metering |
| LADWP - Solar Incentive Program | Utility | Rebate Program |
Find your local rebates and incentives
Please keep in mind that the best source of up-to-date information on incentives are the solar installers who specialize in your area.
