Los AngelesSolar Incentives 2026: Rebates, Tax Credits & Net Metering
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.
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
Solar Incentives in Other California Cities
See your exact Los Angeles solar savings
Enter your LADWP bill and we'll apply every California and federal incentive to your real numbers — system size, net cost, payback, and 25-year savings.