Model your electric bill, solar system, battery and payback using current California utility data — with the assumptions, rates and official sources shown behind every result. No sign-up.
Is solar worth it in California in 2026?
Updated August 7, 2026 · reflecting 2026 rules (no federal 25D credit, SCE NEM 3.0) · by Cali Energy
Is solar worth it in California in 2026? For a typical LADWP home (about $170/month), a cash system pays back in roughly 8 years — strong. On SCE with NEM 3.0 payback runs longer, and for a low-usage home it can stretch past 15–19 years, where solar is questionable as a cash buy. With the federal credit gone, it comes down to your bill, utility and price.
✓ An honest 2026 payback grade — with every rate and offset assumption labeled. See every figure it uses ↓
Approximate model for education only. Assumes a cash purchase, ~1,600 kWh produced per kW per year in California, blended rates of ~28¢ (LADWP) and ~42¢ (SCE), and no federal tax credit. Does not include SGIP battery incentives, financing costs, or degradation. Your quote will differ.
The rates and figures this calculator usestap to verify
The tool sizes a system to your bill, estimates its cost and annual savings, and grades the payback. The rates and offset shares are Cali Energy planning assumptions — each is labeled, because the verdict rides on them.
| LADWP — all-in rate | ~28¢/kWh (bills run ~26–30¢) |
| SCE — all-in rate | ~42¢/kWh (bills run ~34–45¢) |
| LADWP — bill offset | ~85% solar-only / ~90% with battery |
| SCE — bill offset (NEM 3.0) | ~50% solar-only / ~85% with battery |
| Installed price | your $/W (default $3.00, min $1.50) |
| Battery add-on | ~$13,000 (planning assumption) |
| California production | ~1,600 kWh/kW-year (NREL PVWatts) |
| Strong | payback ≤ 9 years |
| Solid | ≤ 14 years |
| Questionable as a cash buy | > 14 years |
The rates and offset shares are Cali Energy planning assumptions, not published tariffs: LADWP’s near-full-retail net metering lets solar erase most of a bill, while SCE’s NEM 3.0 pays little for exports, so a solar-only system erases far less unless a battery is added. The verdict bands are an editorial guide, not a government standard. The ~$13,000 battery and $3/W default reflect 2026 California ranges (a Powerwall installs near $13–17k). No federal tax credit is applied — it ended after 2025.
Example results you can reproduce
These are the three built-in presets — tap a preset (or enter the same values) to reproduce them.
| Scenario | System | Est. cost | Annual savings | Payback | Verdict |
|---|---|---|---|---|---|
| LADWP $170, solar-only | 4.6 kW | $13,661 | $1,734 | 7.9 yr | Strong |
| SCE $280, + battery | 5.0 kW | $28,000 | $2,856 | 9.8 yr | Solid |
| Low-usage $85, SCE | 3.0 kW | $9,750 | $510 | 19.1 yr | Questionable |
How this calculator works
It converts your bill into annual usage at your utility’s all-in rate, sizes a system to cover it (at ~1,600 kWh per kW), and multiplies the kilowatts by your price per watt for the cash cost — adding ~$13,000 if you include a battery. Annual savings are your yearly bill times a utility-specific offset share, and payback is cost ÷ savings, graded into strong / solid / questionable. The offset share is the honest hinge: LADWP erases most of the bill, SCE (NEM 3.0) much less without a battery. These are Cali Energy planning figures, not a quote.
How to read your result
The verdict is about a cash payback against the panels’ ~25-year life. “Strong” means it pays back well inside that life; “questionable” means payback may run past half of it, so a lease/PPA, efficiency first, or waiting for higher usage may make more sense. A long SCE payback usually isn’t the panels — it’s the NEM 3.0 export penalty, which a battery softens.
What moves the result the most
Your utility and whether you add a battery set the offset share — the single biggest lever. Then your bill (bigger bills pay back faster), your price per watt, and the battery decision on SCE. Because there’s no federal credit in 2026, the cash cost is gross, which lengthens every payback versus the pre-2026 math you may have seen.
Common questions
What do I need to use this calculator?
Your average monthly bill, your utility (LADWP or SCE), a price per watt (default $3.00), and whether you’d add a battery. Or just tap a preset.
Why is it “questionable” for a low-usage home?
A small bill produces small annual savings, so a fixed system cost takes many years to earn back. Solar rewards higher usage; a very low bill often isn’t enough to justify a cash purchase.
Does adding a battery help on SCE?
Yes — on NEM 3.0 a battery lets you use more of your own solar at night instead of exporting it cheaply, raising the offset from ~50% toward ~85%. It also adds ~$13,000, so the tool weighs both.
Does this include the federal tax credit?
No — the 30% Residential Clean Energy Credit ended for owner-bought systems after December 31, 2025, so the cost here is gross for 2026.
Is payback the whole story?
No. Backup power, protection from future rate hikes, and a resale premium on an owned system all add value the payback number doesn’t capture — see our home-value tool.
How accurate is this?
It’s a planning estimate built on labeled assumptions. For a precise payback, pair a real itemized quote with our payback calculator, and compare financing paths with the ownership tool.
Sources
- U.S. EIA — Electric Power Monthly, avg residential price (Apr 2026)
- IRS — Residential Clean Energy Credit
- CPUC — Net Billing Tariff (NEM 3.0)
- SCE — Time-Of-Use Residential Rate Plans
- LADWP — Residential Electric Rates
- SelfGenCA — SGIP Program Metrics
- EnergySage — California solar panel cost (2026)
Estimates only, not a quote. Assumptions, rates, incentives and program rules can change — confirm current details with your utility, the program administrator or a licensed professional.
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