Home solar panels could save you money and make your home more resilient to power outages. That’s especially true in California, home to some of the highest electricity rates in the country.
If you’re considering solar panels, it can pay to know a few things before starting the process. While a reputable solar company in Long Beach will know the local solar costs, incentive programs, and your potential to save, understanding for yourself can help you make the best decision for you and your home.
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Does Solar Make Sense in Long Beach?
California has been a leader in residential solar for years. A change to the net metering policies for the state’s three big investor-owned utilities led to a spike in installations in early 2023, followed by a large drop.
While the savings calculation may have shifted, the good news is solar can still make sense in Long Beach and throughout the state. Here are the factors that might play a role in your decision.
Price of electricity
When you go solar within the footprint of Southern California Edison, your savings are mainly driven by avoiding utility electricity. In 2023, electricity from SCE cost an average of 32.33 cents per kilowatt-hour, according to the US Energy Information Administration. That’s about double the national average of 16 cents and higher than the statewide average of 29.51 cents.
When you go solar in Long Beach, you’ll be required to move to a time-of-use rate, so the actual rate you pay for electricity will shift throughout the day.
Southern California Edison's time-of-use rates for customers with solar. Screenshots from Southern California Edison
Price of solar
To save money, your solar savings need to exceed the cost of going solar. The cost of installing solar varies project to project. The size of the system, the complexity of the roof, whether there’s a battery attached, and more can affect the price. One national estimate puts the cost of residential solar at $3.24 per watt during the second quarter of 2024, 20 cents cheaper than a year before.
The best way to find out what you’ll pay for solar at your home is to reach out to a reputable solar installer and get a quote.
Available sunlight
Long Beach gets a daily average of 5.25-5.5 peak sun hours, according to the National Renewable Energy Laboratory. That makes it one of the sunnier places in America and a great location for generating solar energy.
More important than the broad average, though, is the sunlight available on your roof. You can do an informal survey of your roof’s sunniness by watching throughout the day to see what, if anything, casts shadows. The more sun the better.
Credit: SEIA
Outages
Solar panels paired with home energy storage batteries can power select appliances and devices through a power outage. How much of your home can be backed up and for how long depends on the size of your batteries, the size of your solar panel system, and how much your solar panels recharge your batteries during the day.
In 2023, the average Californian experienced 346.6 minutes of power outages, according to the Energy Information Administration. If accessing power through a blackout is a priority for you, solar and storage may be a solution.
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Solar Incentives in Long Beach, CA
Incentives that can bring down the cost and increase what you save are still an important part of getting solar panels at home. Here are some of the most valuable ones that could be available to you.
Federal tax credit
The Residential Clean Energy Credit, commonly known as the federal solar tax credit, is a credit worth 30% of the cost of going solar that owners of eligible systems can claim in the year they’re installed. The credit can only be counted against taxes you’ve paid that year or still owe. Still, it can be valuable.
An eligible system that costs $30,000 would deliver a tax credit of $9,000. There’s no dollar limit or lifetime limit on the tax credit. If your tax liability is too small, you can roll the excess credit to future years.
Everyone’s tax situation is different, so be sure to consult a tax advisor about your situation.
Net metering
When you have solar panels, you probably won’t use every electron your system produces. You can store the extra electricity in a battery or share it with the grid, where it’ll be used by your neighbors. Net metering, net billing, and other similar systems determine how your utility compensates you for that electricity with credits on your bill.
Long Beach’s utility, Southern California Edison, uses a net billing system, commonly known as NEM 3.0, where the credits you earn are worth less than what you pay for electricity. For SCE customers, the credit for one kilowatt-hour sent to the grid in 2024 ranges from zero cents to $3.775 and averages about 7.6 cents. In 2025, those values will change and top out at 93.2 cents per kilowatt-hour.
If you go solar before 2028, you’ll be eligible for an adder that will boost the value of your credits. In 2025 that adder is 3.2 cents per kilowatt-hour exported. It will decline each year after, so the earlier you go solar, the larger your bill credits will be.
Property tax exemption
Solar panels increase the property values of the homes they’re installed on. In California, thanks to a state property tax exemption, you won’t pay taxes on that increase.
Battery storage incentive: Self-Generation Incentive Program
The SGIP is an incentive that helps people install battery storage, with or without solar. In recent years, funding has been more readily available for low-income homeowners and those in communities affected by wildfires and public safety power shutoffs.
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Solar Payback Period in California
Your solar payback period is the time it takes for your savings from going solar to match your costs. NEM 3.0 was designed to deliver payback periods of about nine years. How long any specific solar panel installation takes to pay itself back depends on the specific cost and design of the system, as well as the usage patterns of the family using it and how electricity rates change.
Here’s the basic formula for estimating your payback period.
( Total cost - Total incentives ) / Annual savings = Payback period in years
Many payback calculations assume that electricity prices will go up over time. If they go up faster than assumed, you could reach your payback period even faster. In California, electricity prices have gone up 81% in the last decade (from 16.23 cents per kilowatt-hour in 2023 to 29.51 cents in 2023).
Credit US EIA
Southern California Edison and Rooftop Solar Panels
Unless you take your home entirely off grid (which will be expensive if it’s possible), you’ll still receive a bill from Southern California Edison. SCE’s electric rates, net billing rates, and the set fees will help determine your savings.
| Utility | Average electric rate (cents/kWh) | Daily basic charge (with TOU-D-PRIME) | Net metering type | Average net billing credit (cents/kWh) | Max system size | Max system offset (for net metering) |
|---|---|---|---|---|---|---|
| Southern California Edison | 32.33 | 0.55 | Net billing | 7.6 | None | 150% |
Credit and electricity rates are averages and change in value by time of day and year. Confirm your details on your bill or with your utility.
Long Beach Utilities and home electrification
If you use gas at home for heating, cooking, or water heating, you have two energy bills. Home electrification paired with solar can be one way to further lower your overall energy expenses. Since solar panels don’t directly address your gas expenses, you could take a bigger bite out of your energy needs by shifting more of them to electricity before or after going solar.
A Palmetto energy expert can help identify ways to reduce your overall energy use and expenses.
See how much you can save with home energy changes
Leasing Solar Panels in Long Beach, CA
While solar prices are much lower than they have been, you might be looking for a way to go solar without the upfront cost. You might be interested in a solar lease or power purchase agreement. Under both agreements, you trade the upfront cost for predictable monthly payments for the equipment (under a lease) or the power they produce (under a PPA).
With Palmetto’s LightReach Energy Plan, you get solar panels owned by Palmetto for predictable monthly payments, comprehensive protection and maintenance, and a production guarantee. If you want to own your panels later, you can buy out your plan at a fair market value after five years.
Leases and PPAs typically come with escalators, a set percentage your payments will increase each year. If your payments increase slower than the rate of electricity, you could save more in later years.
Solar Panel Maintenance in Long Beach
Once solar panels are installed, they can be low maintenance. For when things do go wrong, you can sign up for a protection plan, like Palmetto Protect. With coverage options including monitoring and issue detection, parts and labor coverage, and production guarantees, you can safeguard your solar investment. Maintenance and repair should be left to certified professionals to keep warranties intact.
During extended dry periods, dust may build up on panels and reduce the amount of sunlight that reaches them. Gently washing the panels can help boost production, though be sure to follow the manufacturer’s recommendations.
Finding the Best Solar Companies in Long Beach
Your chosen solar company will be your guide through the installation process. For that reason, finding a good one who can help you achieve your goals is a key step.
There are a few things you can do to sift through the crowded playing field and find the best solar company for you.
- Read both positive and negative reviews of companies to get a balanced view
- Understand the benefits of going solar for yourself
- Compare equipment, warranty, and after-installation services
- Talk to friends about their experience going solar
- Look for a company that takes time to answer your questions clearly and lets you decide on your own terms
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Palmetto Reviews
“Palmetto was recommended to me by a friend/broker in the industry. The whole experience was transparent. All the local subcontractors were reliable and communicated effectively. I have had my system for 18 months and loving it more and more every month, especially on sunny days!” Gary G. 11/20/2024 Google Review
“Palmetto handled every detail and kept in close contact with me so I was always up to date on the process. Installation was quick. The installation crew was wonderful. They cleaned everything up and made sure I was satisfied before leaving. The entire experience was extremely pleasant and simple. I would recommend them 110%.” Denise M., Google Review
“I didn't know much about solar before initially meeting with a Palmetto rep. The process from the first meeting to the system being active was very efficient and required minimal involvement from me. All reps that I interfaced with were very knowledgeable and completely transparent. This helped with gaining knowledge on how solar energy works and increased my comfort with moving into the solar world.” Bryant K., Google Review
“After the system was installed we saw a huge decrease in our electric bills, and a huge decrease in our winter bills even with the lack of sunlight during the winter.” Jim F. Google Review
Frequently Asked Questions
Are solar panels worth it in Long Beach?
Yes, solar panels can be worth it in Long Beach. Higher than average electricity prices mean you could save money by switching to solar. Including a battery can often unlock the most savings.
Does Long Beach have net metering?
Southern California Edison switched to a net billing system under new regulations put in place in 2023. Under the current system, SCE customers who go solar will transition to a time-of-use rate. They will purchase electricity at the full retail rate, but the credits they earn on their bill shift throughout the day and year. In 2025, credits are worth between zero and about 93 cents. People who go solar before 2028 will lock in an adder that will increase the value of their credits.
Do I need to go to a time-of-use rate when I go solar?
If you are a Southern California Edison customer, you’ll transition to the TOU-D-Prime rate when you get solar panels.
Does California have a state tax credit for solar panels?
No. California does have a property tax exemption for any property value solar panels add to a home. Californians may also be eligible for the federal solar tax credit, which is worth 30% of the cost of a solar and storage system.
How much does it cost to install solar panels in Long Beach?
The cost of solar panels varies depending on a host of factors. One national average puts the cost of solar at $3.24 per watt, but the most reliable way to find out what solar panels will cost at your home is to get a quote from a reputable solar company.
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Disclaimer: This content is for educational purposes only. Palmetto does not provide tax, legal, or accounting advice. Please consult your own tax, legal, and accounting advisors.
Andrew BlokWriter and EditorAndrew has worked as a journalist and writer for four years, over half of those dedicated to covering solar. He currently lives in Tucson, AZ, where you might run into him walking his dog and birding while dodging the heat. He has degrees in English education and journalism.
