For homeowners in Lomita, seeing a high electricity bill from Southern California Edison (SCE) is a familiar experience. With retail rates around $0.323 per kWh, finding ways to reduce that cost is a top priority. In 2026, going solar is less about tax credits and more about smart energy management. The key is understanding how to maximize the value of the power your system generates, especially under California's current net billing rules.
Get a quick estimate tied to local rates and sun hours.
Open calculatorBenchmark Cost Analysis
Estimated Solar Panel Costs in Lomita (2026)
The total cost for a residential solar installation depends on whether you include a home battery. Based on local averages, here are the estimated costs for a 7.1 kW system designed to offset a typical Lomita electricity bill:
- Solar-Only System (7.1 kW): The estimated gross cost is $18,105. This option focuses on offsetting your daytime energy usage directly.
- Solar + Battery System (7.1 kW panels & 10 kWh battery): The estimated gross cost is $33,105. This system provides greater savings and energy independence by storing solar power for use at night.
These figures represent the upfront investment before calculating your energy savings. Since the 30% federal tax credit is no longer available for systems installed in 2026, the gross cost is the net cost.
Incentives & Tax Credits
California Solar Incentives for 2026
While the federal ITC for homeowners has expired, California still offers a crucial incentive that supports the value of your investment:
Property Tax Exclusion for Active Solar Systems: When you install a solar system, the value of your home increases. Normally, this would trigger a higher property tax bill. However, California law excludes the added value from your solar installation from your property tax assessment. This tax benefit is in place for systems installed through at least mid-2026 and helps improve the long-term financial return of your project. An owned solar system may also support your home's resale appeal to future buyers.
Net Metering: Southern California Edison Co
Net Billing (low export)
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Understanding Net Billing with Southern California Edison
Lomita is in SCE territory, which operates under a net billing tariff. This system is different from the old net metering programs. Here’s what it means in simple terms:
- Energy you generate and use instantly: This is the most valuable part of solar. You avoid buying expensive electricity from SCE, valued at the full retail rate (around $0.323/kWh).
- Energy you export to the grid: When your panels produce more power than your home is using, the excess is sent to the grid. SCE compensates you for this power, but at a much lower rate. Our model uses a proxy export value of about $0.113/kWh, which is significantly less than the retail price.
This rate difference is why a battery is so highly recommended. It minimizes low-value exports and maximizes high-value self-consumption, giving you more control over your energy bills.
Projected Savings
Projected Energy Savings: Why a Battery Makes a Difference
Your long-term savings are directly tied to how much of your own solar power you use. Exporting excess energy to SCE's grid returns less value than using it yourself. This is where a battery significantly changes the financial outcome.
- With a solar-only system, the modeled first-year savings are approximately $2,216, leading to a payback period of about 7.5 years.
- Adding a 10 kWh battery boosts those first-year savings to an estimated $3,308. While the initial cost is higher, the payback period is only slightly longer at 8.3 years, and your monthly bill reduction is much greater.
A battery allows you to store the solar energy you generate during the day and use it during the evening when electricity from the grid is most expensive. This strategy of 'self-consumption' is the most effective way to save money with solar in California today. Furthermore, locking in your energy production provides a buffer if grid electricity becomes more expensive over time.