⚠️ 2026 update on the federal tax credit
The 30% federal residential solar tax credit (Section 25D) expired on December 31, 2025 for systems you buy with cash or a loan. Cost and savings figures on this page that assume that credit may be out of date. Two things still apply: Nevada's sales-tax and property-tax exemptions and NV Energy net metering, and systems on a lease or PPA may still qualify for a federal incentive through the end of 2027. For numbers that reflect today's incentives, book a free review and talk to a tax professional about your situation.
Solar in Los Angeles works very differently depending on whether your address is on LADWP or SCE — LADWP has its own net metering program with no NEM 3.0 export rate cuts, while SCE service-area homes are stuck on California's NEM 3.0 with 70–80% export rate reductions. Knowing which utility you're on is the single biggest factor in LA solar economics.
The LADWP / SCE boundary
LADWP serves the City of Los Angeles proper — roughly 90% of zip codes starting 900xx and 901xx, plus parts of the San Fernando Valley. SCE serves unincorporated LA County and most of the surrounding cities (Pasadena has its own utility — PWP). If your address ends in "Los Angeles, CA 90xxx" inside city limits, you're on LADWP. Pull up a recent power bill to confirm.
LADWP net metering — the win
LADWP runs its own Net Energy Metering program separate from CPUC oversight. Export credits are roughly retail-rate (1:1) on tiered residential rates. NEM 3.0 doesn't apply. That's a meaningful difference — an 8 kW LADWP system pays back in 6–7 years versus 9–11 for the same system on SCE NEM 3.0.
SCE NEM 3.0 — the new reality
Anyone who interconnected after April 14, 2023 on SCE is on NEM 3.0. Export credits dropped from retail rate (~$0.30/kWh) to avoided-cost (~$0.05–$0.08/kWh average). This is why every honest SCE solar quote now includes battery storage — without a battery, your math is terrible because you export at 5 cents and re-buy at 30 cents.
What changed with NEM 3.0 economics
SCE solar-only payback used to be 6–7 years. Now it's 11–14 years on solar alone. With a battery (e.g. 10 kWh Tesla Powerwall or Enphase 5P) you self-consume the production and avoid the export-rate hit, bringing payback back to 8–10 years. SCE's own NEM 3.0 page confirms the rate structure.
HOA reality in LA
California's Civil Code 714 (Solar Rights Act) is the equivalent of Nevada's NRS 278.0208 — HOAs can't prohibit solar, can't impose unreasonable restrictions, and can't add more than $1,000 in cost or cut more than 10% of output. LA HOAs in places like Brentwood, Bel Air, Hancock Park, and Studio City are familiar with the law and generally compliant.
Roof types in LA
Highly variable. Mid-century homes in the Valley are mostly comp shingle. Spanish/Mediterranean homes (Hancock Park, Los Feliz, Silver Lake) are concrete S-tile or clay tile. Hillside homes (Hollywood Hills, Bel Air) often have flat or low-slope roofs needing tilt-leg arrays. Clay tile is the trickiest — it cracks if your installer doesn't use replacement flashings (e.g. tile hooks rated for clay).
LA payback math by utility
LADWP, 7 kW system, $1,800/yr typical bill offset: $21k cash (the 30% federal credit ended December 31, 2025 for owned systems, so there's no federal reduction off that now), payback roughly 9–11 years on a cash purchase.
SCE solar-only, same 7 kW: $21k cash, payback 14+ years (export rate plus no federal credit).
SCE solar + 10 kWh battery: $32k cash, payback 11–13 years; California's SGIP battery rebates can shorten that.
The fire-zone factor
Hillside LA homes in CalFire-designated very high fire hazard severity zones need Class A roof assemblies and certain panel types. This affects the Hollywood Hills, parts of Brentwood, Pacific Palisades, and Bel Air. It doesn't kill solar but adds materials cost and review time.
Permitting in LA
City of LA Building & Safety has SolarAPP+ instant permitting for standard residential systems on LADWP. Permit in days, not weeks. SCE-area unincorporated jurisdictions vary — LA County DPW averages 2–3 weeks.
Want an LA quote?
Send your address (so I can confirm utility) and last 12 months of bills. LA solar page or request a quote.