With San Fernando Valley heat driving up air conditioning use, many Encino homeowners face electricity bills over $290 a month. Rooftop solar offers a direct way to lower those high LADWP costs, but the financial equation in 2026 is different. Since the primary federal tax credit for homeowners is no longer available, the focus has shifted to maximizing the power you generate and use at home, a strategy known as self-consumption. This makes understanding your system design and the role of battery storage more important than ever.
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2026 Solar & Battery Costs in Encino
For a typical home in Encino, a 7.1 kW solar system is sized to offset the majority of an average electricity bill. The estimated cost for this system is $18,105.
Adding a home battery for energy storage significantly improves your ability to use your own solar power after the sun goes down. A combined solar and battery system is estimated to cost $33,105. This price reflects the 7.1 kW solar array plus a 10 kWh battery, which helps you avoid buying expensive evening power from LADWP.
Incentives & Tax Credits
Key California Solar Incentives for 2026
While the 30% federal tax credit for residential solar installations has ended, California homeowners still benefit from important state-level policies. The most significant is the Property Tax Exclusion for Active Solar Energy Systems. This state rule prevents your property taxes from increasing due to the value added by your solar installation. For systems installed through mid-2026, this is a meaningful financial benefit that lasts for the life of the system.
Beyond tax rules, an owned solar system can be a strong selling point for future homebuyers, potentially enhancing your home's resale appeal. It signals lower, more predictable energy costs, which is an attractive feature in a high-cost utility area.
Net Metering: Los Angeles Dept of Water & Power
Net Billing (low export)
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Understanding Export Compensation with LADWP
In Encino, your utility is the Los Angeles Department of Water and Power (LADWP), which sets its own rules for solar customers. Under current net billing structures, the electricity you export to the grid is credited at a rate lower than the retail price you pay for electricity. Our model estimates this export value at around $0.113 per kWh, which is significantly less than the $0.323 per kWh you pay to buy power.
This value gap is why battery storage is highly recommended. A battery allows you to store your solar overproduction for your own use, ensuring you get the full retail value from every kilowatt-hour your panels generate.
Projected Savings
How Solar Reduces Your LADWP Bill
High electricity rates from LADWP, averaging around $0.323 per kWh, are the primary driver of solar savings. By generating your own power, you avoid purchasing that expensive grid electricity. A 7.1 kW solar-only system is modeled to save an Encino homeowner around $2,216 annually, leading to a payback period of about 7.5 years.
Pairing that system with a 10 kWh battery boosts the annual savings to $3,308. The battery accomplishes this by storing your excess solar energy produced during the day. Instead of exporting it to the grid for a low credit, you use that stored energy during the evening, dramatically reducing the amount of power you need to buy from LADWP at peak prices. This makes the system more valuable, even with a slightly longer payback of 8.3 years.