Solar resource
Your solar production in Los Angeles
5.62 avg peak sun hours/day
Monthly avg solar radiation (kWh/m²/day) — Los Angeles, CA. Bars update to show estimated kWh production when you use the calculator above.
Utility rate
Los Angeles Department of Water and Power (LADWP) electricity rate
$0.215/kWh residential
- Utility
- Los Angeles Department of Water and Power (LADWP)
- Residential rate
- $0.215/kWh (blended)
LADWP is a municipal utility not subject to CPUC's NEM 3.0 rules (which apply to IOU customers — PG&E, SCE, SDG&E). LADWP operates its own Net Energy Metering program. Under LADWP NEM, excess solar exported to the grid is credited at the full retail rate (approximately $0.215/kWh), dollar-for-dollar against future bills — a significant advantage over CPUC NEM 3.0 economics.
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Incentives
Available solar incentives in Los Angeles, CA
Federal + state + utility
| Incentive | Type | Value | Scope |
|---|---|---|---|
| Federal Solar Investment Tax Credit (ITC) | Tax Credit | 30% of system cost | Federal |
| California Property Tax Exclusion for Solar | Exemption | 100% of added assessed value from solar installation | State |
| LADWP Net Energy Metering (NEM) | Net Metering | Retail rate credit (~$0.215/kWh) for exported solar energy | Utility |
| Self-Generation Incentive Program (SGIP) — Battery Storage | Rebate | $150–$1,000 per kWh of battery capacity (income-qualified tiers higher) | State |
Incentive amounts and eligibility rules change. Verify current terms with your installer and a tax professional before installation.
System cost
Cost breakdown (6 kW default)
- Gross system cost
- $17400
- Federal ITC (30%)
- −$5220
- Net system cost
- $12,180
- Installed cost per watt
- $2.9/W
Lawrence Berkeley National Laboratory Tracking the Sun 2024 — California median installed cost for systems 3–10 kW. California costs are slightly above the national median due to permitting, labor, and CalGreen inspection requirements.
Payback & long-term value
25-year outlook
- Annual savings (yr 1)
- $2,041
- Simple payback period
- 6.0 years
- 25-year net savings
- $38845
- Assumed annual rate increase
- 2.5%/year
25-year estimate uses flat electricity rate for conservative baseline. Accounting for 2.5% annual rate increases, lifetime savings increase substantially.
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How it works
How solar savings work in Los Angeles
- Your panels capture LA's abundant sunlight Los Angeles averages 5.62 peak sun hours per day — among the highest of any major US city. Solar panels convert sunlight to DC electricity; a 6 kW system in LA produces roughly 9,500 kWh per year, enough to cover the majority of a typical household's usage.
- An inverter converts DC to AC A string inverter or microinverters convert the DC power from your panels into AC electricity your home uses. Modern inverters achieve 96–99% conversion efficiency.
- You use solar power instead of buying from LADWP Every kWh your system produces during daylight offsets what you buy from LADWP at ~$0.215/kWh. A 6 kW system produces roughly 9,500 kWh/year — saving approximately $2,041 annually at current LADWP rates.
- Excess power flows back to LADWP at retail rate LADWP's NEM program credits excess solar exported to the grid at the full retail rate — approximately $0.215/kWh. This is materially more valuable than the export rate available to SCE/PG&E customers under CPUC NEM 3.0, where export credits are ~$0.04–$0.08/kWh.
- You claim the 30% federal tax credit In the tax year your system is installed, claim a 30% federal Investment Tax Credit on the full installed cost. On a $17,400 system, that's $5,220 off federal income taxes — reducing your net cost to $12,180.
- Your savings grow as LADWP rates rise As LADWP electricity rates increase (historically ~2.5%/year), your solar savings compound while your system cost stays fixed. A 6 kW system in Los Angeles nets roughly $38,845 over 25 years after repaying the installation cost.
FAQ
Common solar savings questions for Los Angeles, CA
How much can I save with solar in Los Angeles?
A 6 kW system in LA produces roughly 9,500 kWh/year and saves approximately $2,041/year at LADWP's current blended rate of $0.215/kWh. After the 30% federal tax credit, the net system cost is about $12,180, with a payback period of around 6 years and estimated 25-year net savings of $38,845.
Is Los Angeles affected by NEM 3.0?
No. NEM 3.0 was adopted by the California Public Utilities Commission (CPUC) and applies only to investor-owned utility customers — SCE, PG&E, and SDG&E. LADWP is a municipal utility not regulated by CPUC. LADWP customers retain access to retail-rate net metering (~$0.215/kWh for exported solar), which is significantly more favorable than CPUC NEM 3.0's export rate of roughly $0.04–$0.08/kWh.
What is the LADWP solar NEM program?
LADWP's Net Energy Metering program credits excess solar exported to the grid at the full retail electricity rate — dollar-for-dollar against future bills. Homeowners must apply for interconnection approval before installation. LADWP periodically updates the program; check current terms and capacity availability at ladwp.com/solar.
Does California have a property tax exemption for solar?
Yes. California Revenue & Taxation Code §73 excludes the value a solar system adds to your home from property tax reassessment, through at least January 1, 2027. A 6 kW system in Los Angeles typically adds $15,000–$20,000 to home value; at LA County's effective property tax rate (~1.2%), this exemption saves $180–$240/year.
What is SGIP and does it apply to LA solar?
SGIP (Self-Generation Incentive Program) is a California rebate for battery storage systems installed with solar. The standard residential rebate is approximately $150/kWh of battery capacity; equity and equity resiliency tiers are higher. SGIP is funded by CPUC and is available to LADWP customers who install a qualifying battery. Check current budget status at selfgenca.com, as the program is periodically oversubscribed.
How many solar panels does an LA home need?
A typical LA home using 750–1,000 kWh/month needs a 5–7 kW system — roughly 13–19 standard panels at 380–400 W each. Use the calculator above with your average monthly bill to get a tailored estimate.
Sources
Data sources and freshness
- https://pvwatts.nrel.gov/
- https://www.ladwp.com/ladwp/faces/ladwp/residential/r-gogreen/r-gg-solarpowerprogram
- https://openei.org/apps/USURDB/
- https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=RTC§ionNum=73
- https://www.selfgenca.com/
- https://emp.lbl.gov/tracking-the-sun
- https://www.energy.gov/eere/solar/homeowners-guide-federal-tax-credit-solar-photovoltaics
- https://dsireusa.org/
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Disclaimer: This calculator provides estimates for informational purposes only — not financial or investment advice. Solar savings depend on actual shading, roof orientation, energy usage patterns, rate changes, and equipment performance. Consult a licensed installer and a tax professional before making purchasing decisions. Verify incentive eligibility with official sources. Data last verified 2026-04-17.