What it costs, what's permitted, and what to ask before you hire.
Last verified: 2026-05-31 · Well-sourced
Likely first step
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Panel / electrical
Verify your panel capacity with an electrician
Complexity
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Permit likelihood
Confirm with your building department
Rebate sensitivity
Verify current programs
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Utility impact
Electric: LADWP; gas: SoCalGas
Southern California Edison
As of 2026-05-30, SCE residential electric service runs on time-of-use (TOU) rate plans by default. The standard TOU option is TOU-D-4-9PM (4 PM-9 PM weekday peak window). Alternatives include TOU-D-5-8PM (5 PM-8 PM peak window for households that cannot shift evening load) and TOU-D-PRIME, a rate reserved for customers with an EV, plug-in hybrid, residential battery, or an electric heat pump for space or water heating. TOU-D-PRIME features lower peak rates paired with a higher daily basic charge (about $0.79/day, roughly $24/month). Under California's Net Billing Tariff (NEM 3.0), new residential solar customers in SCE territory must be on TOU-D-PRIME. Legacy tiered and earlier TOU plans (TOU-D-A, TOU-D-B, TOU-D-T) remain available to existing customers but are closed to new enrollment. Households planning heat pump HVAC, EV charging, battery storage, or whole-home electrification may want to compare TOU-D-4-9PM and TOU-D-PRIME; verify current per-kWh rates and plan rules at the provider site before switching.
As of 2026-05-30, LADWP residential electric customers default to rate schedule R-1A (Standard), a three-tier inclining-block structure (Tier 1 / Tier 2 / Tier 3). During summer high-demand months all three tiers price separately; in winter Tiers 2 and 3 are billed at the same rate. LADWP divides the City into two temperature zones (Zone 1 cooler, Zone 2 hotter inland) and gives Zone 2 a larger Tier 1 allowance. Bills also include a monthly Power Access Charge (PAC) that scales with the customer's highest energy use over the prior year. A time-of-use option, R-1B (TOU), is available on request. Important: LADWP is a municipal utility owned by the City of Los Angeles and is NOT regulated by the California Public Utilities Commission (CPUC); rates are set by the LA Board of Water and Power Commissioners. LADWP operates its own net-metering tariff (system cap 1 MW) and is NOT subject to CPUC's NEM 3.0 / Net Billing Tariff (NBT), which governs only the investor-owned utilities PG&E, SCE, and SDG&E. Homeowners should verify current rates on the LADWP residential rates page before sizing a project; LADWP filed rate increases for 2026.
$15,000–$28,000 — Installed cost for a 6–8 kW DC, single-family SoCal residential rooftop solar PV system on a typical asphalt-shingle, tile, or composition roof, mid-range monocrystalline modules, pre-incentive. Range corresponds to roughly $2.50–$3.50 per watt installed at the system sizes most common in SoCal. Excludes battery storage, roof replacement, and electrical service upgrades.
Section 25D Residential Clean Energy Credit (solar PV)
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.
California Net Billing Tariff (NEM 3.0) — solar export compensation framework
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.
As of 2026-05-31, residential solar PV installations in the City of Los Angeles require an electrical permit from LADBS (and a building permit when structural roof attachment work is in scope or when array coverage exceeds 50% of total roof area). LADBS operates ePermit-Solar, the online residential solar PV permitting system, and participates in the federal SolarAPP+ automated plan-review platform under California SB 379, which requires most California cities and counties to provide automated, online, real-time permitting for residential solar and paired storage. Express Solar Permits with electronic plan check are typically issued within 1-3 business days for qualifying installations meeting the LADBS Eligibility Checklist for Expedited Solar Photovoltaic Permitting (PV Toolkit 2). California AB 1132 caps residential solar permit fees at $450 for systems up to 15 kW (plus $15 per kW above 15 kW) through January 2034. Installations in HPOZs may require Planning Department review for arrays visible from the public right-of-way. Properties in LADWP service territory require LADWP's separate interconnection / Net Energy Metering application in addition to the LADBS permit. Verify current SolarAPP+ / ePermit-Solar eligibility, HPOZ status, and LADWP interconnection requirements with LADBS, City Planning, and LADWP before relying on expedited-permit timelines.