30% Federal Tax Credit Available·Avg Payback: 7.2 Years·50 States + DC Covered·$38,400 Avg 25-Year Savings·Federal ITC Locked Through 2032·Real DSIRE Incentive Data·Commercial: Section 48E up to 50%·C&I Payback: 4–7 Years·30% Federal Tax Credit Available·Avg Payback: 7.2 Years·50 States + DC Covered·$38,400 Avg 25-Year Savings·Federal ITC Locked Through 2032·Real DSIRE Incentive Data·Commercial: Section 48E up to 50%·C&I Payback: 4–7 Years·30% Federal Tax Credit Available·Avg Payback: 7.2 Years·50 States + DC Covered·$38,400 Avg 25-Year Savings·Federal ITC Locked Through 2032·Real DSIRE Incentive Data·Commercial: Section 48E up to 50%·C&I Payback: 4–7 Years·30% Federal Tax Credit Available·Avg Payback: 7.2 Years·50 States + DC Covered·$38,400 Avg 25-Year Savings·Federal ITC Locked Through 2032·Real DSIRE Incentive Data·Commercial: Section 48E up to 50%·C&I Payback: 4–7 Years·
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Los AngelesSolar Incentives 2026: Rebates, Tax Credits & Net Metering

Updated June 2026 · LADWP · California

Los Angeles homeowners stack the 30% federal tax credit and LADWP net metering. With 5.6 peak sun hours a day and bills averaging $140/month, the typical Los Angeles system pays back in about 7.2 years.

Federal Credit
30%
CA State Credit
Local Utility
LADWP
Net Metering
Active
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Solar Incentives Available in Los Angeles

Solar incentives in Los Angeles come in three layers. First, every homeowner qualifies for the 30% federal Residential Clean Energy Credit on the full installed cost, claimed on IRS Form 5695. California does not add a state income tax credit, so the federal credit is the main up-front incentive. Third, LADWP sets the local rules for crediting the solar power you export.

LADWP runs its own net metering program separate from the big investor-owned utilities, so LA's rules differ from most of California.

LADWP Net Metering in Los Angeles

LADWP credits excess solar generation from Los Angeles homes under California's net metering rules, at roughly ~70–90% of retail of the retail rate. A right-sized system can bring net annual electricity costs close to zero. See full California net metering rules →

How Much Do Solar Panels Cost in Los Angeles?

At California's 2026 average of $3.05/watt, a typical 8 kW system in Los Angeles runs about $24,400 before incentives. After the 30% federal credit, the net cost drops to roughly $17,080 — the real out-of-pocket number for most Los Angeles homeowners.

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Frequently Asked Questions

Los Angeles homeowners can claim the 30% federal Residential Clean Energy Credit, and net metering / solar buyback through LADWP. LADWP runs its own net metering program separate from the big investor-owned utilities, so LA's rules differ from most of California.

Solar Incentives in Other California Cities

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