Facing high Southern California Edison (SCE) bills, especially during Delano's hot summers, is a common challenge. While rooftop solar is a powerful way to lower those costs, the rules have changed. Under California's Net Billing Tariff (NBT), exporting surplus solar power to the grid earns you significantly less than the retail price you pay for electricity. This shift makes understanding how to use your solar energy the key to maximizing savings in 2026.
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2026 Solar & Battery Costs in Delano
For a typical home in Delano, here are the estimated installation costs before any local rebates. It's important to note that as of 2026, the 30% federal residential solar tax credit is no longer available for new systems.
- Solar-Only System (7.1 kW): The estimated gross cost is around $18,105. This system is sized to offset a significant portion of an average local electricity bill.
- Solar + Battery System (7.1 kW solar with 10 kWh battery): The estimated gross cost is approximately $33,105. The battery adds upfront cost but is designed to dramatically increase your energy self-sufficiency and savings under current SCE rules.
Incentives & Tax Credits
Key California Solar Benefits for 2026
While the federal tax credit has ended for new residential systems, California still offers a crucial incentive that makes going solar more affordable. The primary benefit is the Active Solar Energy System Property Tax Exclusion.
This means that installing a rooftop solar system will not increase your property taxes. The value the system adds to your home is excluded from your property's assessed value, a benefit that runs through at least mid-2026 for new installations. Furthermore, an owned solar system can be a significant asset, potentially improving your home's resale appeal to future buyers looking for lower electricity bills.
Net Metering: Southern California Edison Co
Net Billing (low export)
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Understanding Export Rates: Why a Battery is Recommended
Under SCE's Net Billing Tariff (NBT), the value of exported solar energy has changed. You no longer get a 1-for-1 credit for the extra power you send to the grid. Instead, you're compensated at a much lower rate, modeled here at around $0.11/kWh, which is roughly a third of the retail price.
This is why a battery is strongly recommended. By storing your excess solar power in a battery, you can use it yourself in the evening instead of exporting it for low credit and then buying expensive power back from SCE just hours later. A battery helps you keep the full value of your solar generation within your home, leading to deeper bill reductions.
Projected Savings
How Solar Saves You Money with SCE
Your savings depend on how you use your solar power. Electricity you generate and use instantly is worth the full SCE retail rate of about $0.32/kWh. Power you export is worth much less.
- A solar-only system is modeled to save a Delano household around $2,216 annually, with an estimated payback period of 7.5 years. Savings come from offsetting daytime energy usage.
- Adding a battery system significantly boosts savings to an estimated $3,308 annually. The battery stores your excess solar power from the day to use during the evening, when electricity from the grid is most expensive. While this extends the payback period to around 8.3 years, it provides greater bill control and more than doubles your first-year savings.
These savings can also become more valuable over time. If grid electricity rates continue to rise, the power your system generates will offset more expensive utility costs in the future.