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Is Solar Worth It in Monrovia, CA with 2026 LADWP Rules?

Analyze 2026 solar costs and savings in Monrovia, CA. See how a battery system helps offset high LADWP rates and low export credits.

Market Snapshot

Elec. Rate
$0.323/kWh
Sun Hours
5.0
Utility Los Angeles Dept of Water & Power
Tax Exempt No
Battery Recommended
Data updated May 10, 2026

Analyst Note: Bill-based model (~8.6 kW)

Cost and savings sections below are sized to a typical system for this city’s average utility bill (~8.6 kW modeled). Typical monthly bill here: $290.7.

At this bill level, modeled system sizes are often in the mid-to-high single-digit kW range. Use the calculator below to match your actual usage.

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.

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Benchmark 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

Policy Status

Net Billing (low export)

Battery Priority

Recommended 🔋

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.

Local Questions Answered

Why is a battery so important for solar in Monrovia now?
Because the credit you get for exporting solar power to the grid is much lower than the price you pay to buy power from LADWP. A battery lets you store your own solar energy to use at night, saving you from buying expensive grid power and maximizing your system's value.
Without the 30% federal tax credit, is solar still a good investment?
Yes, especially in a high-cost area like Monrovia. The payback period for a solar and battery system is modeled at around 9.1 years. Given California's high and rising electricity rates, the system provides significant bill savings and long-term protection against utility price hikes.
Does adding solar panels increase my property taxes in California?
No. California has a property tax exclusion for active solar energy systems. This means the value added to your home by the solar installation will not increase your property tax bill, a significant financial benefit for homeowners.

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* Calculations based on Los Angeles Dept of Water & Power residential rates (0.323/kWh).

Data Transparency & Methodology

Estimates for Monrovia, California are produced by the SunCents Solar Engine (v1.2). We combine the following verified or standard industry sources:

Performance (PV production)

NREL PVWatts — modeled annual and hourly AC output (kWh), solar radiation, and system losses for a standardized array size so cities can be compared fairly.

nrel.gov

Electricity rates (tariffs)

U.S. Energy Information Administration (EIA) — state-level average retail electricity prices ($/kWh) and supporting series for economic context.

eia.gov

Incentives & programs

DSIRE — state and local rebates, net metering, and policy programs (summarized for readability; always confirm eligibility with a tax or solar professional).

dsireusa.org

Federal incentives

SunCents calculator net cost does not include a federal residential tax credit. Incentive rules change—check DSIRE, IRS/DOE guidance, and a tax professional before relying on any credit.

energy.gov

Utilities & interconnection

Where shown, local utilities (e.g. APS, PG&E, FPL, and other IOUs or munis) are mapped from public interconnection, tariff, or service-territory references so net metering and rider rules match your area—not generic national averages.