Facing High LADWP Bills in 2026? Solar Rules Have Changed.
Electricity from Los Angeles Dept of Water & Power is expensive, with rates around $0.323 per kWh. While Monrovia gets excellent sun, the rules for selling surplus solar power back to the grid have shifted. Exported energy is now worth significantly less than the power you buy, which changes the math for homeowners. The most effective solar strategy now focuses on using as much of your own generated power as possible, right inside your home.
Compare bill offset and incentives—open the calculator next.
Open calculatorBenchmark Cost Analysis
Monrovia Solar & Battery System Costs for 2026
The cost of a solar installation is based on the system size needed to offset your household's energy consumption. For a typical Monrovia home, here are the estimated costs for systems installed in 2026.
- Solar-Only System (8.6 kW): The estimated gross cost is around $21,930. This system is designed to produce significant energy during the day.
- Solar + Battery System (8.6 kW panels with 10 kWh battery): The estimated gross cost is $36,930. This configuration allows you to store daytime solar energy for use during expensive evening hours, maximizing your savings and providing backup power.
These figures are modeled estimates before any local incentives, which can further improve the financial picture.
Incentives & Tax Credits
California Solar Incentives Beyond Tax Credits
While the 30% federal tax credit for residential solar is no longer available for systems installed in 2026, California homeowners still have valuable financial advantages:
- Property Tax Exclusion: In California, an active solar system is excluded from your property tax assessment. This means you can add a valuable asset to your home without increasing your property tax bill. This exclusion is currently in place for systems installed through at least mid-2026.
- High Self-Consumption Value: With retail electricity rates at $0.323/kWh, every kilowatt-hour of solar energy you use at home provides a direct, high-value offset on your bill. This makes self-consumption the most powerful financial incentive of all.
An owned solar system can also be a significant feature when selling your home, potentially enhancing its resale appeal to future buyers looking for lower utility bills.
Net Metering: Los Angeles Dept of Water & Power
Net Billing (low export)
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Understanding Export Rates in Monrovia
Under the current net billing structure, the value of the electricity your solar panels send to the grid is much lower than the price you pay for electricity you pull from the grid. LADWP buys your excess power at an 'avoided cost rate' (modeled here at $0.113/kWh), which is a fraction of the retail price.
This is why storing your solar power in a battery is now recommended. By using your stored energy in the evening, you avoid buying power at the full retail rate of $0.323/kWh. You keep the full value of your solar production for yourself instead of exporting it for a small credit.
Projected Savings
How a Battery Maximizes Your Savings
With today's utility rules, adding a battery significantly increases the value of your solar system. Instead of selling surplus solar to the grid for a low credit (around $0.113/kWh), you store it for later.
- A solar-only system is modeled to save approximately $2,216 annually, with a payback period of about 8.9 years.
- A solar and battery system increases those savings to $3,308 annually by avoiding high-cost evening electricity from LADWP. The payback period is nearly identical at 9.1 years, but the long-term savings are much greater.
Over time, as grid electricity becomes more expensive, the value of producing and storing your own power is likely to grow even more.