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Solar power in Los Angeles, California

If you’re lucky enough to live in LA, installing solar can save you thousands on your electricity bills. With net metering and a large federal tax credit, solar is financially a no-brainer.

Solar panels installed in LA typically pay for themselves in under 7 years, making them a fantastic financial investment. After 7 years, your panels will generate free electricity for you for at least 18 years!

Angelenos are especially lucky when it comes to solar because they don’t have to worry about the changes coming to the net metering policies offered by investor-owned utilities like SCE, PG&E, and SDG&E. This means LA solar homeowners can send extra solar energy they generate to the utility company, LADWP, and get credited at the full retail rate of electricity.

However, future changes to California’s net metering could cause LADWP to reconsider how they bill solar customers. So, you should consider making the switch to solar before your utility gets the chance to cut your savings. 

Here is a link to an 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 2025 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 cost

There 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.

$20,615

Net cost of system
?

5 Years 8 Months

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

$114,431

(Prices shown after repayments of capital)

282

Solar companies in Los Angeles, CA that provide pricing through the Solar-Estimate marketplace.

Best solar offers currently available in Los Angeles

Solar calculator and quote comparison tool

Average total cost of solar panel installation in Los Angeles

System Size Cash purchase
After 30% solar tax credit
Financed purchase
After 30% solar tax credit
3kw $6,069 $6,555
4kw $7,924 $8,558
5kw $9,730 $10,508
6kw $11,424 $12,338
7kw $13,083 $14,130
8kw $14,616 $15,785
9kw $16,128 $17,418
10kw $17,500 $18,900

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 Clean Energy Tax Credit Federal Personal Tax Credit
Property Tax Exclusion for Solar Energy Systems State Property Tax Incentive
Net Billing (NEM 3.0) State Net Metering
Self-Generation Incentive Program State Battery Rebate
City of San Francisco - Low-Income Solar Inverter Replacement Program City Low-Income Program
LADWP - Net Metering Utility Net Metering
Disadvantaged Communities – Single-Family Solar Homes (DAC-SASH) program Residential Low-income solar 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.

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
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The information on our website is general in nature and is not intended as a substitute for competent legal, financial or electrical engineering advice. As forecasting solar savings involves assumptions about future electricity prices you should be aware such estimates are inherently uncertain.

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