Los Angeles, CA · Solar Panels
What it costs, what's permitted, and what to ask before you hire.
$15,000–$28,000
Expired Dec 31, 2025. For 2023–2025: 30% of total installed cost, no cap. EXPIRED: This federal credit ended Dec 31, 2025 under the One Big Beautiful Bill Act (Public Law 119-21, signed July 4, 2025). Expenditures made after Dec 31, 2025 do not qualify — for §25D, the IRS treats the expenditure date as the date the installation is placed in service (completed), not the date of payment. A homeowner who paid a deposit in 2025 but whose system was placed in service in 2026 does not qualify. For installations placed in service during 2023–2025, the credit applied to solar PV systems supplying electricity to a U.S. residential dwelling used by the taxpayer as a residence (principal residence not required; second homes qualified; rentals not occupied by the taxpayer did not qualify), satisfying applicable fire and electrical codes, with installation costs included in the credit basis. The credit was nonrefundable with carryforward. Homeowners with eligible 2025 placed-in-service installations may still claim the credit on their 2025 federal tax return. Verify with a qualified tax professional.
Policy framework, not a direct rebate. Excess solar generation exported to the grid is compensated at a rate reflecting the time-varying grid value of that generation (Avoided Cost Calculator methodology), rather than at the retail electricity rate that NEM 2.0 used. Net export compensation under the Net Billing Tariff is typically materially lower than under NEM 2.0; pairing solar with battery storage may materially affect project economics under this framework. POLICY IN EFFECT — NOT A REBATE: The Net Billing Tariff (NBT), commonly called 'NEM 3.0,' is the current Net Energy Metering framework for new residential solar interconnections in California, adopted by CPUC Decision 22-12-056 and effective for applications submitted on or after 2023-04-15. It applies to new customer-generator interconnections in the three large investor-owned utility territories: Pacific Gas and Electric (PG&E), Southern California Edison (SCE), and San Diego Gas & Electric (SDG&E). LADWP and other publicly owned utilities operate their own net-metering tariffs and are not covered by NBT. Under NBT, onsite solar generation first offsets the customer's own consumption; excess generation exported to the grid is compensated at a time-varying export rate based on the grid's avoided cost rather than the retail rate. Existing NEM 1.0 / NEM 2.0 customers are generally grandfathered under the legacy tariff for a defined period from their original interconnection date — verify against the customer's utility for the legacy term. Homeowners considering new residential solar in PG&E / SCE / SDG&E territory should model project economics specifically under NBT, with and without paired battery storage, before signing a contract.
As of 2026-05-30, LADWP does NOT offer a residential upfront solar PV rebate; its legacy Solar Incentive Program for residential customers has been closed. The compensation mechanism for LADWP residential solar is net metering: excess generation exported to the grid is credited at the customer's applicable retail rate (R-1A tier price or R-1B TOU price). System size cap is 1 MW. Important: LADWP customers are NOT subject to CPUC's NEM 3.0 / Net Billing Tariff (NBT) — that framework applies only to PG&E, SCE, and SDG&E customers. Homeowners should verify current LADWP NEM terms before signing a contract, as municipal tariffs can change at LADWP Board action. LADWP residential electric customer with an active meter. System must meet LADWP interconnection requirements (sizing relative to historical load, equipment on approved list, LA Department of Building and Safety permitting and inspection). For solar paired with battery, separate interconnection rules apply.
Contractor question bank coming soon for this project.