High electricity bills from Southern California Edison are a familiar problem for homeowners in El Segundo. While rooftop solar is a powerful solution, the rules have changed. In 2026, simply sending excess power back to the grid doesn't provide the bill credits it once did. The key to maximizing savings now is using the solar energy you generate yourself, which is why pairing panels with a home battery has become a financially strategic move for many.
From rates to ROI—continue in the savings calculator.
Open calculatorBenchmark Cost Analysis
2026 Solar & Battery Costs in El Segundo
Here are modeled cost estimates for a typical home in the area. These figures are based on a 6.4 kW system designed to offset a high percentage of an average local electricity bill. Remember, these costs do not include any federal tax credits, as the 30% homeowner credit is no longer available for systems installed in 2026.
- Solar Panels Only: The estimated gross cost is around $16,320.
- Solar Panels + 10 kWh Battery: The combined system cost is approximately $31,320. This option significantly increases self-consumption, which is critical under current SCE rules.
An owned solar system may also support resale appeal, adding a valuable feature for future buyers looking for homes with lower, more predictable energy costs.
Incentives & Tax Credits
California Solar Incentives for 2026
While the 30% federal tax credit for homeowners has expired, California still offers valuable support that makes going solar a smart financial decision.
- Property Tax Exclusion: In California, the value added to your home by a solar energy system is excluded from your property tax assessment. This means you get the benefit of a home improvement without the tax penalty. Note that this exclusion has a defined timeline and is currently set for systems installed through mid-2026.
- High Retail Rates: Southern California Edison's high electricity rates are, in effect, a powerful incentive. Every kilowatt-hour of solar energy you use at home is a kilowatt-hour you don't have to buy from the utility at jejich premium prices.
Net Metering: Southern California Edison Co
Net Billing (low export)
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Understanding Export Rates with Southern California Edison (SCE)
Under the current Net Billing Tariff (NBT), the value of solar has shifted from exporting power to using it on-site. When your panels produce more electricity than your home is using, the excess is sent to the grid. SCE compensates you for this exported power at a rate significantly lower than the retail price you pay for electricity. Our model uses an estimated export rate of $0.113 per kWh, compared to a purchase price of over $0.32 per kWh. This difference is why a battery is so effective—it lets you keep your valuable solar energy for yourself instead of selling it for less.
Projected Savings
Modeled Annual Savings: Why a Battery Makes a Difference
With SCE's current net billing structure, the electricity you export to the grid is valued at a much lower rate than the power you buy. This makes storing your own solar energy more valuable than selling it cheap and buying it back expensive later.
- A solar-only system is modeled to save an El Segundo homeowner around $1,994 annually, with an estimated payback period of 7.5 years. It works by offsetting usage during the day.
- Adding a 10 kWh battery boosts the modeled annual savings to $2,960. While the upfront cost is higher, leading to an 8.7-year payback, the battery allows you to store daytime solar energy for use during evening peak hours, dramatically reducing your reliance on expensive grid power from SCE and improving your long-term return.
These savings can become even more significant if grid electricity becomes more expensive over time, as rooftop generation can offset costlier power in future years.