Los Angeles Solar in 2026: LADWP Net Metering, Not NEM 3.0

By SolarFY Editor, the MySolarFY editorial team · Reviewed July 8, 2026 · How we source our data

Los Angeles has the sun, the high summer air-conditioning loads, and the electric bills that make rooftop solar an easy question to ask. What makes it different from San Diego, Fresno, or San Jose is the utility. Almost every home in the city is served by the Los Angeles Department of Water and Power, or LADWP, the largest municipal utility in the country and a customer-owned public agency rather than an investor-owned one. That single fact changes the whole solar picture: because the California Public Utilities Commission does not set LADWP’s rates, Los Angeles is not on NEM 3.0. LADWP runs its own net energy metering that still credits your exported solar at close to the full retail rate, which is more generous than the Net Billing Tariff that now governs the rest of Southern California. This page covers what solar really costs in Los Angeles, how LADWP net metering works, which California incentives still apply in 2026, and how the LADBS and LADWP permitting process runs, so you can check your address in about a minute.

Why Los Angeles is not on NEM 3.0, and what LADWP does instead

The most important thing to know about Los Angeles solar is that the NEM 3.0 story you have read for the rest of California does not apply here. NEM 3.0, the Net Billing Tariff, was created by a California Public Utilities Commission decision and governs only the state’s investor-owned utilities: Pacific Gas and Electric, Southern California Edison, and San Diego Gas & Electric. LADWP is a publicly owned, customer-owned municipal utility, and the CPUC does not regulate its rates or its solar program (DSIRE, as of 2026). So if you live in Los Angeles and read that you will be paid tiny hour-by-hour avoided-cost rates for your exports under NEM 3.0, that is about the other utilities, not about you. Note that many Los Angeles County suburbs outside the city, such as much of the San Gabriel Valley, are served by Southern California Edison and are on NEM 3.0, so this page is specifically about addresses served by LADWP.

What governs Los Angeles solar is LADWP’s own net energy metering. Under LADWP’s program, the solar you use in your home offsets power you would have bought at retail, and the surplus you export is credited to your account at or near LADWP’s full retail per-kWh rate, effectively close to one-for-one, and netted against your energy charges within the billing cycle (LADWP Net Energy Metering Guidelines, as of 2026). That near-retail credit is the heart of why solar math in Los Angeles looks better than in NEM 3.0 territory: an exported kilowatt-hour is worth close to what you pay for one, rather than a fraction of it. LADWP does not automatically move you to its best rate plan when you go solar, so it is worth asking which residential plan fits your usage. Because LADWP updates its guidelines periodically, confirm the current export terms with LADWP before you sign. For how credit-based solar billing works in general, see our explainer on how net metering and net billing credit your solar exports, and for the statewide picture behind all of this, see our California solar guide.

How LADWP net metering credits your solar

The near-retail credit is what drives your Los Angeles solar math. When your panels make more than your home is using, the surplus flows to the grid and LADWP credits it to your account at close to the retail rate you would otherwise pay, roughly one-for-one, and applies it against your energy charges (LADWP Net Energy Metering Guidelines, as of 2026). On the tiered residential plan, credits you do not use in a month generally roll forward to offset later bills. This is the practical opposite of NEM 3.0, where an exported kilowatt-hour is worth only a small fraction of a retail one, and it is why a Los Angeles homeowner does not have to build a system around a battery just to make the numbers work.

Net metering does not zero out every line on the bill, though, which is why some solar homes still see a charge. LADWP credits offset your energy charges, not the fixed customer charge, taxes, or other non-energy fees, so even a system that covers all your energy use leaves a small monthly bill. A system that is undersized for your air conditioning, heavy shading, or a switch to an evening-heavy time-of-use plan can also leave more of your usage uncovered than you expected. If your solar bill is higher than you thought it would be, the usual causes are those fixed charges, a system sized below your actual use, or a rate plan that does not match when you use power. A home battery is still worth considering in Los Angeles, but here its main value is backup power during a heat-wave outage or a wildfire public-safety shutoff, not the bill arbitrage that drives battery math in NEM 3.0 territory, because LADWP already pays you close to retail for exports. For what storage costs, see our breakdown of what a home battery costs.

LADWP’s rates and why solar still pays in Los Angeles

Solar pays in Los Angeles because you use the most power when it is most expensive, in the hot months. LADWP’s 2026 Standard Residential rate (Schedule R-1A) runs about 26.4 cents per kWh in the lower Tier 1 and about 32.3 cents in Tier 2 during the summer season, easing to roughly 24.4 and 30.2 cents in spring (LADWP, as of June 2026). Those rates sit a little below California’s statewide residential average of 30.29 cents per kWh (EIA, April 2026), a genuine Los Angeles advantage over the investor-owned utilities. The catch is the same one as everywhere: cheaper power means each solar kilowatt-hour saves a little less, so the case for solar here leans on high summer cooling use and on LADWP’s near-retail export credit, which keeps the value of every kilowatt-hour you produce high.

Los Angeles sun turns that rate into real production, and where you live in the city matters. A 6 kW system is modeled at about 10,000 kWh a year across Los Angeles on a live PVWatts run, but the number is not the same everywhere: inland Pacoima in the San Fernando Valley comes in around 10,466 kWh, coastal Westchester near LAX around 9,975 kWh, and South Los Angeles about 10,029 kWh (NREL PVWatts, as of July 2026). The roughly 5 percent gap is real: the marine layer and coastal haze near the ocean shave a little irradiance off the panels, while the hotter, clearer Valley gets more sun. It is still a model, not a measurement of your specific roof, so pitch, orientation, and shading from trees or a two-story neighbor will move your number up or down. Run your exact address on NREL’s free PVWatts calculator before you size a system.

How much do solar panels cost in Los Angeles?

Here is our own estimate for a representative Los Angeles home on LADWP’s net metering. The table below is an original MySolarFY calculation, not a figure lifted from another site. It uses a 6 kW system producing about 10,000 kWh a year (the live PVWatts figure above), a blended LADWP retail value near 27 cents per kWh for the power your solar offsets, and LADWP’s near-retail net-metering credit for what you export, so on-site use and exports are worth close to the same. It assumes typical 2026 California cash pricing near $3.00 per watt installed, which is roughly $18,000 for the system and about $13,000 more for a 13 kWh battery. It assumes no federal tax credit, because the homeowner credit ended after December 31, 2025, and it is before any income-qualified program. Your real numbers depend on your roof, your usage, and your rate plan, so treat this as an estimate and get a written quote.

Scenario (6 kW, Los Angeles, LADWP net metering)	Estimated cash cost, before incentives	How your solar is valued	Estimated first-year bill savings	Estimated simple payback
Solar only, no battery	About $18,000	Nearly all production offsets your bill at LADWP’s near-retail net-metering credit, on-site or exported (near 27 cents blended)	About $2,500	About 7 years
Solar plus a battery (about 13 kWh)	About $31,000	Same near-retail bill offset, plus backup power during heat-wave outages and public-safety shutoffs	About $2,600	About 12 years, plus resilience and larger lifetime savings

How we derived first-year savings: we value the power your solar offsets at a blended LADWP retail rate near 27 cents per kWh, a usage-weighted estimate across LADWP’s 2026 R-1A tier-1 and tier-2 seasonal rates (about 24.4 to 32.3 cents). The math is roughly 10,000 kWh a year times about 27 cents, or about $2,700 of gross energy value, minus the fixed customer charge and taxes that net metering does not offset, which lands near $2,500. Because LADWP net metering credits exports at close to the same near-retail rate, the split between power you use on site and power you export barely changes the bill math, which is the big contrast with NEM 3.0 and with SMUD’s flat export credit in Sacramento. That is also why the battery row’s annual savings barely move: LADWP already pays you near-retail for exports, so a battery adds resilience and backup rather than the bill arbitrage it captures in NEM 3.0 territory, and its payback runs longer while its lifetime value comes from outages avoided. Figures assume no federal 25D credit, because it ended for systems placed in service after December 31, 2025, and no income-qualified program. Your numbers depend on your roof, usage, and rate plan.

Notice that payback here is faster than in Sacramento and far simpler than in the NEM 3.0 markets. Because LADWP credits your exports at close to retail, a solar-only system in Los Angeles pays back quickly without forcing you to buy a battery to capture value, which is the opposite of the NEM 3.0 economics on Edison and San Diego Gas & Electric. It is also a different story from Sacramento, where the municipal utility SMUD pays a lower flat export credit, so the case for a battery there is stronger. A battery in Los Angeles is mostly about resilience: keeping the lights and the air conditioning on through a summer outage or a wildfire public-safety power shutoff. To see how the math flips under the investor-owned utilities, compare our San Diego solar guide and our Sacramento solar guide, the other California city where a municipal utility, not NEM 3.0, sets the rules.

Which solar incentives still apply in Los Angeles in 2026

The honest headline is that Los Angeles has fewer active up-front incentives than it did a few years ago, so plan around what is real in 2026. California has no state solar income-tax credit, LADWP’s old cash rebate for rooftop solar is gone, and the federal homeowner credit has ended. What remains is a property-tax break with a deadline and a set of narrow, income-qualified programs. The table below shows what is active for a Los Angeles homeowner in 2026 and what has ended, so you can plan around real programs rather than outdated ones.

Program	What it does	Status in 2026 for a Los Angeles homeowner
California active solar property-tax exclusion	Excludes the added home value of a solar system from property tax reassessment	Active, but scheduled to sunset for new installs January 1, 2027; the system must qualify before then (California BOE, as of 2026)
LADWP Solar Rooftops program	A turnkey LADWP program that designs, permits, and installs a small rooftop system for eligible participants, rather than paying a cash rebate on a system you buy	Active, with eligibility that leans toward income-qualified and disadvantaged-community households; confirm current terms and availability with LADWP (LADWP, as of 2026)
DAC-SASH (Disadvantaged Communities Single-family Solar Homes)	Covers most or all of the cost of a rooftop system for income-qualified owner-occupants in disadvantaged-community census tracts, administered by GRID Alternatives	Active; eligibility is by census tract and household income, and Los Angeles has many qualifying tracts, so confirm your address and current funding before you rely on it (CPUC, as of 2026)
Income-qualified storage (RSSE / SGIP through LADWP)	Rebates toward a home battery for eligible low-income households	Income-qualified only, and LADWP’s budget was reported near fully reserved with new applications going to a waitlist; the broad, all-customer SGIP battery rebate has closed (SGIP program metrics, as of 2026)
LADWP general residential solar rebate	A cash rebate on a customer-owned rooftop solar purchase	None; LADWP’s old Solar Incentive Program rebate ran out of funding years ago and has not been renewed, so do not expect a general LADWP cash rebate in 2026 (Solar.com, as of 2025)
California state income-tax credit	A state credit against income tax	None; California has no personal income-tax credit for residential solar (DSIRE, as of 2026)
Federal Residential Clean Energy Credit (Section 25D)	The 30 percent federal homeowner tax credit	Ended for systems placed in service after December 31, 2025 (IRS, as of 2026)

Note: To find out whether your home is in a disadvantaged-community tract that qualifies for DAC-SASH, check your address in the state’s CalEnviroScreen tool. Eligibility is set tract by tract, so it is not automatic for the whole city, and the income-qualified programs also have household-income limits. Because funding for these programs can fill up, confirm each one is still open and funded before you count on it, and get any income-qualified offer in writing.

What the federal tax-credit change means for Los Angeles homeowners

The federal homeowner credit is gone, and you should ignore any page or ad that still says otherwise. The 30 percent federal Residential Clean Energy Credit (Section 25D) ended for systems placed in service after December 31, 2025 under the One Big Beautiful Bill Act, so a Los Angeles homeowner who completes an installation in 2026 with cash or a loan cannot claim it (IRS, as of 2026). Being under contract or having paid a deposit before the deadline does not save it; the system had to be placed in service by December 31, 2025. You will still see search results and even AI answers claiming the 30 percent credit runs through 2032; that is out of date for the homeowner credit, which already ended. What matters now is LADWP’s near-retail export credit, the property-tax exclusion, the income-qualified programs, and the bill savings from using your own power. For the full timeline, see what the federal solar tax credit change means in 2026.

One federal credit remains, but it is not the homeowner’s to claim. A separate commercial credit, Section 48E, can apply to the business that owns a leased or power-purchase-agreement system, not to the resident (IRS, as of 2026). On a lease or PPA you do not file for a federal credit yourself; the company that owns the panels does. The 25D homeowner credit, by contrast, ended after December 31, 2025.

How solar permitting works in Los Angeles

Los Angeles solar runs through two agencies, and knowing the sequence keeps your project moving. The Los Angeles Department of Building and Safety, or LADBS, issues the building and electrical permit for your system, while LADWP handles the interconnection application, the solar inspection, and the new meter (City of Los Angeles solar guide, as of 2026). A typical project applies for the LADWP interconnection work request and the LADBS permit in parallel, LADBS inspects and finalizes the permit, LADBS releases the project to LADWP for the solar inspection and meter, and LADWP completes the interconnection so you can switch on. Smaller systems, generally under 10 kW of AC capacity with no battery and no electrical-service upgrade, can qualify for LADWP’s fast-tracked Solar Automated Meter Spot process, which shortens the interconnection step (LADWP Net Energy Metering Guidelines, as of 2026). For you, that usually means a shorter timeline from signed contract to a running system, as long as your installer submits a standard, code-compliant design. Ask any installer whether they handle both the LADBS permit and the LADWP interconnection for your address.

Paying for solar in Los Angeles: cash, loan, lease, or PPA

There is no single right way to pay for solar; the best fit depends on whether you want to own the system and capture the incentives yourself, or avoid an up-front cost. A lease or PPA can mean no up-front cost for eligible homeowners, but it is a long-term agreement with monthly payments, not free solar, and the system owner, not you, would claim any incentive that goes to the owner. The table compares the common paths at a high level. To think through it in more depth, see our primer on powering a California home with solar the right way.

Path	Up-front cost	Who owns the system and any owner incentives	Best when
Cash purchase	Full system cost	You, the owner	You want the fastest payback and the most lifetime savings
Solar loan	Little to none, financed	You, the owner	You want ownership without paying cash up front
Lease or PPA	$0-up-front where eligible	The third-party owner	You prefer no up-front cost and a simpler, fixed monthly bill

How to choose a solar installer in Los Angeles

Los Angeles has one of the deepest solar markets in the country, which is good for you because it means real competition on price and service, and it also means more sales pressure to sort through. Rather than chasing a “top installer” list, screen any company against objective criteria:

• NABCEP certification, the industry’s professional standard for PV installers.
• A valid California Contractors State License Board (CSLB) license with the correct classification (C-46 solar or C-10 electrical).
• A clear workmanship and equipment warranty in writing.
• Real experience with LADWP interconnection, LADWP net metering, and LADBS permitting, including the Solar Automated Meter Spot process for smaller systems.
• A written production estimate and a transparent quote built on LADWP’s actual net-metering credit and residential rates, not on NEM 3.0 economics that do not apply to LADWP customers.

MySolarFY matches you with licensed installers that serve your area so you can compare real local quotes side by side, with no obligation. To see how we research and where our figures come from, read our data and methodology, and learn more about the MySolarFY editorial team.

Check which solar programs are available at your Los Angeles address →

Frequently asked questions

Is Los Angeles on NEM 3.0? No. NEM 3.0, the Net Billing Tariff, was set by the California Public Utilities Commission and applies only to the investor-owned utilities: PG&E, Southern California Edison, and San Diego Gas & Electric. The city of Los Angeles is served by LADWP, a customer-owned municipal utility that the CPUC does not regulate, so NEM 3.0 does not apply here (DSIRE, as of 2026). LADWP runs its own net energy metering that credits exports at close to the retail rate. If you have read that California exports are paid at tiny hourly avoided-cost values, that is the investor-owned-utility rule, not the LADWP one. Some Los Angeles County suburbs served by Southern California Edison are on NEM 3.0, so it comes down to your specific utility.

How much does LADWP pay for the solar I export? LADWP credits exported solar under its own net energy metering at or near its full retail per-kWh rate, effectively close to one-for-one, and applies the credit against your energy charges (LADWP Net Energy Metering Guidelines, as of 2026). That near-retail credit is far more generous than the low hourly export values the investor-owned utilities pay under NEM 3.0, and it is why a Los Angeles homeowner does not need a battery just to make the bill math work. LADWP updates its guidelines from time to time and does not automatically switch your rate plan, so confirm the current export terms and the best plan with LADWP before you sign.

Is solar worth it in Los Angeles in 2026? For most owner-occupied Los Angeles homes with decent sun, yes. LADWP’s near-retail net metering keeps the value of every kilowatt-hour high, a 6 kW system is modeled at about 10,000 kWh a year here on a live PVWatts run (NREL PVWatts, as of July 2026), and LADWP’s summer residential rate runs about 26.4 to 32.3 cents per kWh (LADWP, as of June 2026). We estimate a cash solar-only system pays back in roughly 7 years before any income-qualified program. Savings are not guaranteed and depend on your roof, usage, and how you pay, so get a written quote.

Why is my LADWP bill still high after going solar? Net metering offsets your energy charges, but it does not erase the fixed customer charge, taxes, and other non-energy fees, so a small monthly bill remains even when your solar covers all your energy use (LADWP Net Energy Metering Guidelines, as of 2026). A bill that is higher than expected usually means one of three things: those fixed charges, a system sized below your actual air-conditioning use, or a rate plan that does not match when you use power. Checking your system size against your usage and asking LADWP which residential plan fits you best are the two quickest fixes.

Does LADWP offer a Powerwall or battery rebate? Not as a general, all-customer rebate. LADWP does not pay a broad cash rebate for a home battery like a Tesla Powerwall; the storage incentives that exist are income-qualified programs such as RSSE and SGIP administered through LADWP, and LADWP’s budget was reported near fully reserved with new applications going to a waitlist (SGIP program metrics, as of 2026). Some search results confuse LADWP’s electric-vehicle charger rebate with a battery rebate; they are different programs. If you want backup power in Los Angeles, price the battery on its resilience value first, and only count on an income-qualified rebate if you confirm you qualify and the program is funded.

Is there still a 30 percent solar tax credit in 2026? No. The 30 percent federal Residential Clean Energy Credit (Section 25D) ended for systems placed in service after December 31, 2025 under the One Big Beautiful Bill Act, so a Los Angeles homeowner who installs in 2026 with cash or a loan cannot claim it (IRS, as of 2026). Some search results and AI answers still say the 30 percent credit runs through 2032; that is out of date for the homeowner credit, which already ended. A separate commercial credit, Section 48E, is a business credit that only the company owning a leased or PPA system can claim, not the homeowner, and it does not revive the 25D homeowner credit, which ended after December 31, 2025.

Can I get solar with no up-front cost in Los Angeles? Some homeowners can, through a lease or power purchase agreement (PPA) where eligible, which can mean no out-of-pocket cost at installation in exchange for monthly payments. This is not free solar; it is a long-term agreement, typically 20 to 25 years, and total payments may exceed the cost of a cash purchase. On a lease or PPA the third-party owner, not you, owns the system and any incentive that goes to the owner, while your benefit is a lower or fixed power price. If you want to own the system and keep the property-tax exclusion and any income-qualified incentive yourself, a cash purchase or solar loan is the path that keeps them. Check what you qualify for before deciding.

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Reviewed by the MySolarFY editorial team on July 8, 2026. Figures were verified against the linked LADWP, DSIRE, California BOE, CPUC, SGIP, IRS, EIA, City of Los Angeles, and NREL PVWatts sources as of July 2026; LADWP’s net-metering terms and residential rates, the LADWP Solar Rooftops, RSSE, SGIP, and DAC-SASH program terms, and the property-tax exclusion deadline can change, so confirm current terms with LADWP, the CPUC, and GRID Alternatives before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional about your own situation. Learn more about the MySolarFY editorial team and how we work.

MySolarFY is a free service that matches homeowners with licensed solar installers. We are not an installer, financing company, tax advisor, or government program, and we do not provide tax advice. The federal residential solar tax credit (Section 25D) ended for systems placed in service after December 31, 2025, and most homeowners who install in 2026 cannot claim it, so confirm your tax situation with a professional. “No up-front cost” refers to qualifying lease or PPA financing where eligible; these agreements typically run 20 to 25 years, may include an annual price escalator, and total payments may exceed the cost of a cash purchase; on a lease or PPA the system owner, not the homeowner, owns any incentive that goes to the owner. Solar panels are not free and monthly payments apply. Production, incentives, savings, and rates vary, change over time, and are not guaranteed. See our full disclaimer.