High electricity bills from Southern California Edison (SCE) are a constant concern for homeowners in the San Gabriel foothills. But with California's net billing tariff (NEM 3.0), the old rules for going solar have changed dramatically. The key to unlocking major savings in 2026 isn't just about generating power—it's about storing it.
Benchmark Cost Analysis
Azusa Solar + Battery System Costs (2026)
To achieve real energy independence from SCE, a solar and battery storage system is the standard. While a solar-only setup might seem cheaper at around $8,050 after credits, its savings are severely limited by low export rates. That's why most homeowners now choose a combined system.
- Typical Solar + Battery System (Gross): ~$23,500
- Federal Solar Tax Credit (30%): -$7,050
- Net Cost After Incentives: ~$16,450
- Estimated Payback Period: 9-10 years
This investment covers both energy production and the storage needed to power your home during SCE's expensive evening peak hours, delivering true savings.
Incentives & Tax Credits
Maximize Your Return with the Federal Solar Tax Credit
The single most important financial incentive for Azusa homeowners is the federal Residential Clean Energy Credit. It allows you to deduct 30% of your total system cost—including panels, inverters, and battery storage—directly from your federal taxes. For a typical $23,500 system, that's a $7,050 credit, bringing your net cost down to just $16,450.
Net Metering: Azusa Light & Water
NEM 3.0 (2023)
Critical 🔋
Understanding SCE's Net Billing (NEM 3.0)
Under NEM 3.0, the game has changed. SCE no longer offers a 1-for-1 credit for excess solar energy you send to the grid. Instead, they pay a very low 'avoided cost' rate, which can be as little as 5-8 cents per kWh. Meanwhile, you still have to buy power from them during peak evening hours for 30-50 cents or more. A solar battery solves this problem by letting you store your excess daytime energy and use it yourself, bypassing the grid and its unfavorable rates entirely.
Projected Savings
Real Savings with a Battery System
By storing your own solar energy, you can avoid selling it to SCE for pennies and instead use it to power your home when electricity is most expensive. With Azusa's excellent sun exposure, this strategy can save you a significant amount.
- Average Monthly Electric Bill Before Solar: $243
- Estimated Annual Savings (Solar + Battery): $1,688
- Lifetime Savings (25 Years): Over $42,200
Without a battery, your annual savings could be slashed by more than 30% because you'd be forced to buy back expensive power every evening.