Los Angeles, CA Solar Panels
Solar Power in Los Angeles
Los Angeles is one of the best cities in the country for solar — and the numbers back it up. California electricity prices have risen 56% since 2020, making that monthly energy bill harder to ignore.
If you’re curious about solar installation in Los Angeles, you’re in the right place. This guide covers everything you need to know about solar panels for your home — from how the process works to what it costs in LA.
CALIFORNIA by the Numbers
How Much Do Solar Panels Cost in Los Angeles, CA?
Using real installation data from homes across Los Angeles — from Pasadena to Long Beach, Santa Monica to Burbank — this calculator gives you an honest, localized estimate of what solar installation actually costs in your area.
System
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Key Takeaways
- Los Angeles electricity rates have risen 40% since 2021 — now nearly double the national average — making solar one of the smartest ways to stabilize your monthly energy costs.
- A typical LA home can save around $105,000 over 25 years with solar, with a payback period of just over 6 years on a cash purchase.
- LA homeowners can lease solar for as low as $89/month — no upfront cost, no maintenance, and Palmetto handles everything.
Los Angeles Electricity Prices
Electricity in Los Angeles costs nearly twice the national average — and rates have climbed steadily for years.
California’s electricity rate rose from 22.8 cents per kWh in 2021 to 31.9 cents per kWh in 2024 — a nearly 40% increase in three years. The national average over the same period rose from 13.7 to just 16.5 cents per kWh.
Solar panel installation in Los Angeles allows homeowners to generate their own electricity at home. That means less reliance on the grid and more predictability over monthly energy costs — regardless of where utility rates go next.
Most home solar systems are built to last 25 years or more. For Los Angeles homeowners, that long-term stability can make a meaningful difference in a market where grid electricity costs continue to trend upward.
Price of Energy: California vs National Average
Los Angeles Area Utility Providers
Los Angeles homeowners are served primarily by LADWP and SCE, with some areas covered by Anaheim Public Utilities and Riverside Public Utilities. Based on 2023 data, electricity rates across these providers vary significantly — and most exceed the national average.
In 2023, the national average was 16.0¢/kWh. LADWP charged 23.0¢/kWh and SCE reached 32.3¢/kWh — well above both the national and California state average of 29.5¢/kWh. Anaheim (17.5¢) and Riverside (18.4¢) were closer to the national average, but still above it.
Higher electricity rates mean every kilowatt-hour costs LA homeowners more. Solar can offset that consumption directly, making the financial case stronger in high-rate areas like SCE’s service territory — where every unit of solar energy produced replaces electricity at 32.3¢/kWh.
Los Angeles Utilities Electricity Rates
California Solar Incentives
Los Angeles homeowners may have access to meaningful solar incentives in California that can significantly reduce the upfront cost of going solar.
State programs like SGIP and DAC-SASH offer income-qualified LA homeowners rebates that can cover a substantial portion — or even all — of solar and battery installation costs, depending on eligibility.
With a solar lease through LightReach, Palmetto handles the commercial tax credit and passes the savings to you through lower monthly payments — no tax filing required.
| Incentive | Type | Description | Source |
|---|---|---|---|
| SGIP – Residential Solar & Storage Equity (RSSE) – AB 209 | Rebate | A state-funded rebate of $3,100/kW for solar and $1,100/kWh for battery storage available to income-qualified California households, potentially covering 100% of system costs. | Learn More |
| DAC-SASH – Disadvantaged Communities Single-Family Solar Homes Program | Rebate | An upfront solar installation rebate of up to $3/watt for income-qualified homeowners in California disadvantaged communities, administered by GRID Alternatives through 2030. | |
| Federal Commercial Solar Investment Tax Credit (ITC-48E) – Third-Party Owned Systems | Tax Credit | Businesses and third-party solar owners (lease/PPA providers) can claim a 30%+ federal Investment Tax Credit for solar projects that begin construction before July 4, 2026, with savings often passed to homeowners through prepaid leases at a ~30% discount. | Learn More |
The Self-Generation Incentive Program (SGIP) Residential Solar and Storage Equity (RSSE) budget is the only active SGIP pathway in 2026. Funded by $280 million in state dollars under AB 209, it offers $3,100 per kW for paired solar and $1,100 per kWh for battery storage — generous enough to cover 100% of system costs for many households. For example, a typical 7 kW solar system paired with a 10 kWh battery could receive up to $21,700 for solar and $11,000 for the battery, totaling $32,700 in incentives.
To qualify, your household income must be at or below 80% of the Area Median Income (AMI), or you must be enrolled in the CARE, FERA, or ESA utility assistance programs. You must also be a residential customer of SCE or LADWP, both of which serve Los Angeles. Systems must be sized to the home’s actual electricity usage — batteries larger than 15 kWh for single-family homes require justification based on energy consumption.
As of early 2026, the $280 million budget is fully reserved, but new applications are accepted on a waitlist and funded as existing reservations cancel. The best way to apply is through an SGIP-approved installer. All applicants must enroll in a qualified Demand Response program within one year of reserving funds. Check current funding availability at selfgenca.com.
The Disadvantaged Communities – Single-Family Affordable Solar Homes (DAC-SASH) program provides an upfront rebate of up to $3 per watt for solar installations, which can cover $12,000–$15,000 of the cost of a typical 4–5 kW system. The program is funded at $8.5 million annually and remains active through 2030, making it one of the most valuable solar incentives available to qualifying Californians in 2026.
To be eligible, you must: (1) receive electrical service from SCE (which serves much of the Los Angeles area); (2) own and occupy a single-family home as your primary residence; (3) live in a Disadvantaged Community (DAC) as identified by the CalEnviroScreen 4.0 map; and (4) have a total household income within CARE or FERA program limits. You can verify your address using the CalEnviroScreen tool at oehha.ca.gov/calenviroscreen.
The program is administered by GRID Alternatives, a nonprofit solar installer. The rebate covers equipment and installation costs, though out-of-pocket expenses may apply for roof repairs, panel upgrades, or permitting fees. To get started, complete the online eligibility form at gridalternatives.org or call GRID Alternatives toll-free at (866) 921-4696 for a pre-screening conversation.
While the federal residential solar tax credit (25D) has expired for homeowner-purchased systems, the commercial Investment Tax Credit (ITC-48E) remains available for third-party owned solar systems — including those installed under leases and Power Purchase Agreements (PPAs). Solar companies that own and install systems on residential rooftops can claim a base credit of 30% of system costs, with bonus adders of up to 10% each for projects in low-income communities, energy communities, or on Indian land — potentially reaching 40% or more.
For homeowners in Los Angeles, the most practical benefit comes through prepaid solar leases: because the third-party owner claims the commercial ITC, they can pass the equivalent ~30% savings directly to you as a reduced purchase price at the point of sale. This effectively replicates the financial benefit of the expired residential ITC without requiring you to have any personal tax liability. PPAs offer a similar benefit — you pay nothing upfront and lock in a per-kWh rate below your utility’s current price.
To qualify for the commercial ITC, projects must begin construction before July 4, 2026. Projects that miss this deadline must be placed in service by December 31, 2027 to remain eligible. If you are considering a solar lease or PPA, act promptly to ensure your provider can begin construction in time to capture the credit and pass the savings to you. LightReach is currently the only California PPA provider offering battery storage under the same agreement — an important consideration for SCE customers in Los Angeles under NEM 3.0.
Ready to start saving with solar?
Speak with a Palmetto solar expert to find out exactly how much you can save with California incentives.
Get a Free QuoteLos Angeles Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. Understanding how seasons affect your solar system helps set realistic expectations for your investment.
Los Angeles enjoys abundant sunshine year-round, but coastal fog and seasonal shifts still affect solar output. Here’s a monthly breakdown of what you can expect from a solar system in LA.
Solar Production in Los Angeles by Month
What Can Your Solar System Power?
Summer Production (July)
In July, your 10 kW system could power:
- 3.6 average homes (15 kWh/day per home)
- or Run central AC for 18 hours AND power all other appliances
- or Fully charge 5.4 Tesla Model 3 electric vehicles
Winter Production (December)
In December, your 10 kW system could power:
- 2 average homes (15 kWh/day per home)
- or Keep your home heating system running for 15 hours
- or Fully charge 3 Tesla Model 3 electric vehicles
Annual Production
Over a year, your 10 kW system could:
- Offset 10 tons of carbon dioxide emissions
- or Equal the environmental benefit of planting 175 trees
- or Save approximately $4,234 in electricity costs
Want to know exactly how much solar can power your home?
Get a personalized solar analysis based on your actual home, energy usage, and roof characteristics.
Get My Custom EstimateSolar Panel Systems in Los Angeles
We mapped thousands of solar installations across Los Angeles to show just how many neighbors have already made the switch. Explore the heatmap below to see which communities and neighborhoods in LA are leading the way in solar adoption!
Leasing Solar Panels
If you’re not ready to purchase solar panels outright, Palmetto offers an alternative through LightReach — a solar lease program available to Los Angeles homeowners served by LADWP (Los Angeles Department of Water & Power). With a lease, you pay a fixed monthly amount — for example, as low as $89/month for a medium-sized home — while Palmetto owns and maintains the system.
Leasing has a few key advantages over a cash purchase. There’s no large upfront investment, no maintenance responsibilities, and no need to worry about repairs or system performance. Palmetto handles all of that. You simply pay your monthly lease and enjoy lower energy bills. With a cash purchase, you own the system — but you’re also responsible for upkeep over its 25+ year lifespan.
Not sure whether leasing or buying is right for you? The answer depends on your financial situation, how long you plan to stay in your home, and your appetite for ownership. Learn more about the differences between buying and leasing solar to find the option that fits your needs.
Go solar without the investment
With LightReach, there are no investment costs to recoup, loan payments to manage, or maintenance needs to take on. As soon as your panels are active, your solar savings are too!
Explore LightReach LeasingFrequently Asked Questions
Yes. Los Angeles is one of the best cities in the country for solar. With 6 peak sun hours per day, electricity rates nearly double the national average, and California rates rising nearly 40% since 2021, LA homeowners have strong financial reasons to consider solar installation.
A typical LA home can save around $105,000 over 25 years. For those who prefer no upfront cost, Palmetto’s LightReach solar lease removes the barrier entirely — homeowners can go solar with no money down and start saving from day one.
It depends on your utility provider. Most Los Angeles homeowners are served by LADWP (Los Angeles Department of Water & Power), which offers true 1:1 net metering. Excess solar credits roll over month-to-month indefinitely and are applied to future electric charges — credits never expire or get paid out as a check.
Homeowners served by Southern California Edison (SCE) are on NEM 3 (Net Billing), where export credits are based on hourly avoided-cost rates, which are typically lower than retail rates. Excess credits are settled annually at roughly 3–5¢/kWh. As a municipal utility, LADWP is not subject to NEM 3.
Yes, solar panels can increase your home value in Los Angeles. According to a Zillow study, homes with solar panels sell for about 4.1% more than comparable homes without them. In a high-value real estate market like Los Angeles, that premium can translate to tens of thousands of dollars.
It’s worth noting that this benefit typically applies to owned solar systems, not leased ones. If you purchase your system outright, the added home value is generally recognized by buyers and appraisers. Leased systems may require the new buyer to assume the lease agreement.
With Palmetto’s LightReach lease, Los Angeles homeowners can go solar for as low as $89/month with no upfront cost. Palmetto owns and maintains the system, so there’s nothing to manage.
For a cash purchase, a medium-sized LA home typically runs around $19,414 for a 6.72 kW system. Note that following the Big Beautiful Bill, the federal 30% residential tax credit is no longer available for cash purchases. Use the calculator above for a personalized estimate based on your home size.
For many Los Angeles homeowners, solar makes strong financial sense — especially with electricity rates nearly double the national average. With Palmetto’s LightReach lease, you can start saving from day one with no upfront investment. The monthly lease payment is typically less than your current electricity bill, so savings begin immediately.
For those who prefer to own, a typical LA home saves around $105,000 over 25 years with a payback period of just over 6 years. Either way, LA’s 6 peak sun hours per day make it one of the most financially rewarding places in the country to go solar.
Palmetto is a top choice for solar installation in Los Angeles. As a national company with a strong local presence, we’ve completed 7,123 installs across California since 2020. We offer flexible financing options, including our LightReach lease starting at just $89/month with no upfront cost, along with cash purchase options.
Our trusted install network serves LA homeowners from Pasadena to Long Beach, and our team handles everything — from permitting to activation. We maintain an approval rating over 85% and are committed to making solar simple, transparent, and affordable for Los Angeles residents.
With Palmetto’s LightReach program, Los Angeles homeowners can lease solar with no upfront cost. One simple monthly payment covers the system, installation, monitoring, maintenance, and a 90% Production Guarantee. For a typical 6.72 kW system in LA, the estimated monthly lease payment is approximately $89/month.
Because Palmetto owns the system, it claims the commercial Investment Tax Credit (ITC) and passes those savings to you through lower monthly payments — a key advantage over cash purchases. Most LA homeowners start saving immediately, since the lease payment is typically less than their current electricity bill.