Many Lomita homeowners are wondering if solar still makes financial sense in 2026. You see the high electricity bills from Southern California Edison (SCE) and know the sun is strong, but recent changes under a policy called NEM 3.0 have made the situation confusing. The answer is yes, solar is still an excellent investment, but only if you pair it with a battery. Without one, you're giving away your valuable energy for next to nothing.
Benchmark Cost Analysis
What Does the Recommended System Cost?
A solar-plus-battery system designed to maximize savings in Lomita typically costs around $23,500 before any incentives. After the significant federal tax credit, the net cost comes down to $16,450. This investment achieves a payback period of around 9.5 years, after which you enjoy decades of electricity at a tiny fraction of the utility cost.
Incentives & Tax Credits
Key Financial Help: The Federal Solar Tax Credit
The primary incentive making this possible is the 30% federal Residential Clean Energy Credit. This is not a deduction but a dollar-for-dollar credit against your federal tax liability, reducing the cost of your system by $7,050. California also ensures that your property tax bill won't increase, even though the system adds significant value to your home.
Net Metering: Pacific Gas & Electric (PG&E)
NEM 3.0 (2023)
Critical 🔋
The Big Problem: SCE's Net Billing Rules (NEM 3.0)
Under California's current Net Billing Tariff, the value of surplus solar energy you send to the grid is extremely low—about 75% less than what you paid for that same power under the old net metering rules. SCE now credits you a mere 5-8 cents per kWh for your exports. This means a "solar-only" system generates minimal savings. The solution is energy independence: by adding a battery, you store all the excess solar power you generate during the day. When the sun goes down and SCE's rates skyrocket, you use your own stored, virtually free energy instead of buying it from the grid.
Projected Savings
Your Savings with a Solar + Battery System
By storing and using your own power, you bypass SCE's low export rates and can slash your monthly electricity bill by 75% or more. For a typical household in Lomita, this translates to an average annual savings of $1,734. This strategy directly combats SCE's Time-of-Use rates by ensuring you draw minimal power from the grid during expensive peak hours from 4 PM to 9 PM.