With electricity rates from Los Angeles Dept of Water & Power (LADWP) around $0.32/kWh, many West Hills homeowners are seeing monthly bills average nearly $300. In 2026, rooftop solar offers a direct way to reduce that high cost, but the financial outcome depends heavily on how the system is designed. Under California's current net billing rules, pairing solar panels with a home battery has become the most effective strategy for maximizing savings and energy independence.
From rates to ROI—continue in the savings calculator.
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2026 Solar System Costs in West Hills
The total cost for a professionally installed rooftop solar system depends on its size and whether you include battery storage. For a typical West Hills home, here are the estimated costs for a 6.8 kW system designed to offset a significant portion of a $291 monthly electric bill. Note that these figures reflect pricing after the default federal residential tax credit ended for systems placed in service after 2025.
- 6.8 kW Solar-Only System: The estimated gross cost is around $17,340.
- 6.8 kW Solar System with 10 kWh Battery: The estimated combined cost is around $32,340.
Adding a battery increases the upfront investment, but it significantly boosts your annual savings by allowing you to store and use your own solar power when LADWP rates are highest.
Incentives & Tax Credits
Key California Solar Incentives for 2026
While the 30% federal tax credit is no longer available for most new residential systems in 2026, California homeowners still benefit from a crucial state-level incentive:
- Property Tax Exclusion: In California, installing a solar system does not increase your property taxes. This exclusion on the added value of your solar installation is a significant financial benefit, ensuring your investment in energy independence doesn't result in a higher tax bill. This program is currently set for systems installed through mid-2026.
Furthermore, an owned solar system can improve your home's resale appeal. As utility rates from providers like LADWP are projected to rise, a home with its own power source becomes an increasingly valuable asset for potential buyers.
Net Metering: Los Angeles Dept of Water & Power
Net Billing (low export)
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Understanding Export Rates with LADWP
Under California's net billing structure, the electricity you export to the grid is worth less than the electricity you buy from it. For example, you might pay LADWP $0.32 per kWh for power but only receive a credit of around $0.11 per kWh for the surplus solar energy you send back. This difference is why self-consumption is so important.
A solar battery solves this problem. It stores your excess daytime solar energy so you can use it yourself in the evening instead of exporting it for a low value. This strategy dramatically increases the financial return of your system by maximizing the amount of expensive grid power you offset.
Projected Savings
Modeled Annual Savings with and without a Battery
Installing solar panels is not just about generating power; it's about replacing expensive grid electricity with your own. With LADWP's high rates, the value of self-consuming your solar energy is substantial.
- A solar-only system is modeled to save a West Hills homeowner around $2,216 annually, leading to a payback period of approximately 7.2 years.
- A solar and battery system increases those savings significantly to around $3,308 annually. While the upfront cost is higher, the payback period is only slightly longer at 8.1 years, and your long-term savings are much greater.
The battery system delivers nearly 50% more in annual savings because it helps you avoid selling your valuable solar energy back to the grid for a low credit. Instead, you store it for use during evening peak hours.