Is Solar Still Worth It in California in 2026? An Honest Answer with Real Numbers

California households pay roughly 35.25¢ per kilowatt-hour on average — nearly double the U.S. average of 18.83¢, according to the U.S. Energy Information Administration (April 2026). When power is that expensive, every kilowatt-hour your roof produces is worth a lot. That is the single biggest reason solar still works here in 2026.

But two things now push against you. First, the 30% federal Residential Clean Energy Credit is gone for homeowner-owned systems placed in service after December 31, 2025 — confirmed by the IRS. A system that used to cost $21,000 net now costs the full sticker price, which adds years to payback. Second, if you are on SCE, PG&E, or SDG&E, the Net Billing Tariff (NEM 3.0) pays you far less for exported power than the old net metering did. That makes self-consumption — and often a battery — central to the math.

So the real answer is not a slogan. It depends on which utility you have and how much electricity you use. Let's put numbers to it.

LADWP is a municipal utility, so it is not on NEM 3.0. It still credits exported solar close to retail value, which means a solar-only system without a battery can offset most of your bill. A roughly 6.5 kW system at about $3.00 per watt runs near $19,000 before any incentives (the 2026 California average is about $2.52/W; we use a slightly higher, conservative figure for a quality install).

A home paying about $170 a month can expect that to fall to roughly a $25 minimum-charge bill, saving on the order of $1,700–$1,800 a year. Without the federal credit, payback lands around 10–11 years — longer than in 2025, but well inside the 25-year life of the panels. For most LADWP homeowners with a normal-to-high bill, solar is still a clear yes.

On SCE you are under the Net Billing Tariff, where midday exports are worth only a few cents. The way to make solar pay is to store your own power and use it during the expensive 4–9 p.m. peak, which reaches roughly 58¢/kWh in summer. Battery customers move to a plan such as TOU-D-PRIME under SCE's Solar Billing Plan.

An 8 kW system plus a 13.5 kWh battery lands near $36,000 cash in 2026 (batteries run roughly $1,000 per kWh installed). A $280 monthly bill can fall to about $40, saving roughly $2,900 a year, for a payback near 11–13 years. That range tightens if you qualify for an SGIP battery rebate — equity and equity-resiliency tiers can reach around $1.00–$1.10 per watt-hour, though funding and eligibility change over time. For a high-usage SCE home you plan to keep, it still pencils out — mainly because SCE rates are so high and keep rising.

Every figure above assumes a cash purchase in 2026 with no federal tax credit. We use production of about 1,550 kWh per kW per year for the LA basin, blended effective rates of roughly 28¢/kWh for LADWP and 42¢/kWh for SCE (SCE is higher because of peak TOU pricing), and installed pricing around $3.00/W for solar and ~$1,000/kWh for storage. We do not bake in SGIP, financing interest, panel degradation (~0.5%/year), or future rate increases — the first two lengthen payback, the last two shorten it. Real quotes vary with roof orientation, shading, panel and inverter choice, and your actual rate plan.

To go deeper on the two policy levers that drive all of this, see our companion guides: NEM 3.0 explained, the 2026 federal solar tax credit change, and LADWP vs. SCE for solar.

If you are on LADWP with a normal-to-high bill, solar is very likely worth it, even without the credit. If you are on SCE and use a lot of power, solar plus a battery still makes sense provided you plan to stay in the home long enough to reach payback. If you are a low-usage household, be honest with yourself about the long payback and look at efficiency or a no-upfront lease first. The best way to know is a real quote against your actual bill and rate plan. That is a free conversation — call us at +1 (323) 844-7777.