With average electric bills near $290 a month in Wilmington, many homeowners served by the Los Angeles Department of Water and Power (LADWP) are looking for ways to reduce costs. Rooftop solar provides a direct path to generating your own power, but the rules for how you get paid for surplus energy have changed. In 2026, the key to maximizing solar savings is understanding how to use the power you generate right at home.
Skip ahead to a personalized savings estimate for your home.
Open calculatorBenchmark Cost Analysis
Solar & Battery System Costs in Wilmington (2026)
For a typical Wilmington home, a 7.2 kW solar system is sized to offset the majority of the electricity bill. As of early 2026, the 30% federal tax credit for residential solar is no longer available for new systems, so the upfront cost reflects the total investment. Here are two common scenarios:
- 7.2 kW Solar-Only System: The estimated gross cost is around $18,360. This setup is designed to lower your LADWP bill by generating power during the day.
- 7.2 kW Solar System + 10 kWh Battery: This combined system has an estimated gross cost of $33,360. The battery stores excess solar energy, giving you more control over your power and increasing your total savings.
These figures are modeled estimates. The final price depends on your specific roof, equipment choices, and installation details.
Incentives & Tax Credits
California Solar Incentives for 2026
While the federal tax credit has expired for new installations, California still offers a significant financial benefit for homeowners going solar. The primary incentive is the Active Solar Energy System Property Tax Exclusion. This state rule prevents your property taxes from increasing due to the added value of your solar panel system. For systems installed through at least mid-2026, this means you get the home improvement value without the tax burden.
Additionally, an owned solar system can be a strong selling point for future homebuyers, potentially supporting your home's resale appeal in a state with notoriously high energy costs.
Net Metering: Los Angeles Dept of Water & Power
Net Billing (low export)
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Understanding Export Rates with LADWP
Wilmington is in LADWP territory, which operates under a 'net billing' structure. This means you don't get a 1-for-1 credit for the extra solar energy you send to the grid. Instead, you're compensated at a lower rate.
For example, you might pay over 32 cents per kilowatt-hour (kWh) for electricity you pull from the grid in the evening. However, the surplus solar power you export during the day might only earn you a credit of around 11 cents per kWh. This difference is why a battery is highly recommended. It lets you store that valuable solar energy for your own use instead of selling it to the utility for less.
Projected Savings
How Much Can You Save on Your LADWP Bill?
Savings depend on how much of your own solar power you use directly. Because exporting surplus power to the grid pays less than what you pay LADWP for electricity, using your own energy is more valuable.
- The solar-only system is modeled to save approximately $2,216 annually, with a payback period of about 7.6 years.
- Pairing solar with a battery boosts savings to around $3,308 annually. The battery allows you to store solar power generated during the day and use it during the evening, avoiding high-cost grid electricity. This extends the payback period to 8.3 years but delivers greater long-term financial benefits and energy independence.
If grid electricity becomes more expensive over time, rooftop generation can offset costlier power in future years, making your system an even better investment.