Fighting against Southern California Edison's (SCE) time-of-use rates feels like a losing battle, especially with summer AC bills in Lennox hitting hard. Since 2023, the rules for solar have changed significantly. The old model of selling power back to the grid for a high credit is gone. In 2026, gaining energy independence and real savings means pairing solar panels with a home battery.
Benchmark Cost Analysis
2026 Solar + Battery System Costs in Lennox
The upfront cost for a solar-only system can be tempting—around $11,500 before incentives. However, to achieve meaningful savings under current rules, a solar-plus-battery system is the recommended path. Here's a realistic cost breakdown:
- Gross System Cost (Solar + Battery): ~$23,500
- 30% Federal Tax Credit (2026): -$7,050
- Your Net Cost: $16,450
- Estimated Payback Period: 9.6 years
This investment not only provides a solid financial return but also gives you crucial backup power during outages.
Incentives & Tax Credits
Available Solar Incentives
The primary financial incentive is the 30% federal Residential Clean Energy Credit. This allows you to deduct 30% of the total system cost (including the battery) directly from your federal taxes. Additionally, California's Property Tax Exclusion prevents your property taxes from increasing as a result of adding a solar system, ensuring you reap the full value of your investment without extra tax burden.
Net Metering: LADWP / Southern California Edison
NEM 3.0 (2023)
Critical 🔋
Navigating SCE & NEM 3.0 in Lennox
California's Net Energy Metering 3.0 (NEM 3.0) dramatically reduced the value of exported solar energy. SCE now buys your excess daytime solar power for a meager 5-8 cents per kWh. Just a few hours later, during peak evening hours (4-9 PM), they charge you 30 cents or more to buy it back. Without a battery, you are essentially giving away valuable energy. A solar battery lets you store that free daytime power and use it yourself during peak hours, sidestepping SCE's high rates entirely. This is why over 90% of new solar customers in the area now include a battery.
Projected Savings
Real Monthly & Annual Savings
With an average electric bill of $243, a combined solar and battery system can deliver immediate savings. You can expect to save around $1,711 per year ($142 per month) by generating and storing your own power. This strategy avoids peak electricity pricing and protects you from future SCE rate hikes. In contrast, a solar-only system under NEM 3.0 would save you just $1,213 annually, as most of your production would be sold to the grid for pennies.