With Los Angeles Dept of Water & Power electricity rates around $0.323/kWh, many Covina homeowners are facing bills that average nearly $291 a month. Rooftop solar offers a clear path to generating your own cheaper power, but the rules have changed. In 2026, the value of going solar depends heavily on how you use the energy you produce, not just how much you send back to the grid.
Run your scenario: the calculator uses this city’s utility and tariff data.
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Solar & Battery System Costs in Covina (2026)
For a typical home in Covina, a 7.2 kW solar panel system costs approximately $18,360 before any incentives. This system is sized to offset a significant portion of the average household's electricity usage.
Because exporting power is less valuable now, many homeowners opt to add storage. A 7.2 kW solar system combined with a 10 kWh battery costs around $33,360. The battery stores your excess solar energy for use in the evening, maximizing your savings and providing backup power during outages.
Incentives & Tax Credits
California Solar Incentives for 2026
As of early 2026, the 30% federal residential clean energy credit is no longer available for new systems. However, California homeowners still have access to key benefits that support the investment:
- Property Tax Exclusion: Installing a solar system in California will not increase your property taxes. The added value of the solar installation is excluded from your home's valuation for tax purposes.
- High Self-Consumption Value: With LADWP's high retail rates, every kilowatt-hour of solar energy you use at home provides significant savings. This direct bill reduction is the primary financial driver for solar in California.
An owned solar system can also be a compelling feature for potential buyers, potentially supporting your home's resale appeal down the road.
Net Metering: Los Angeles Dept of Water & Power
Net Billing (low export)
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Understanding Export Rates vs. Retail Rates
The biggest challenge for solar-only systems in 2026 is the difference in energy value. When you buy electricity from Los Angeles Dept of Water & Power, you pay the full retail rate of about $0.323 per kWh. But when your solar panels produce more energy than you can use and you send it to the grid, the credit you receive is much lower—modeled here at around $0.113 per kWh.
This gap is why simply exporting power is no longer the best financial strategy. A battery solves this by keeping your valuable solar energy in your home, allowing you to use it later and avoid paying that high retail rate.
Projected Savings
How Solar Saves You Money with LADWP
A solar-only system in Covina can generate an estimated $2,216 in electricity bill savings annually, leading to a payback period of about 7.6 years. This works by directly powering your home during the day, so you avoid buying expensive grid power.
Adding a battery significantly improves the economics. By storing your solar energy instead of exporting it for a low credit, a solar-plus-battery system increases annual savings to an estimated $3,308. While the initial cost is higher, the payback period is still attractive at around 8.3 years, and it delivers greater energy independence. Solar also protects you from future rate hikes; if grid electricity becomes more expensive over time, the value of your self-generated power only increases.