With Southern California Edison (SCE) electricity rates around $0.32/kWh, many Redondo Beach homeowners are looking for ways to reduce their high monthly bills. Rooftop solar is a powerful solution, but the financial equation has changed for systems installed in 2026. With the default federal tax credit no longer available for new residential systems, the focus shifts to maximizing the value of every kilowatt-hour you generate, especially since exporting power back to the grid pays far less than what you pay to buy it.
From rates to ROI—continue in the savings calculator.
Open calculatorBenchmark Cost Analysis
2026 Solar & Battery Pricing in Redondo Beach
Here are modeled cost estimates for a typical home, based on a 7.4 kW system designed to offset a ~$291 monthly electric bill. These figures reflect pricing without any federal tax credits.
- Solar-Only System (7.4 kW): The estimated gross cost is around $18,870. This setup is designed to directly offset your electricity usage during the day.
- Solar + Battery System (7.4 kW panels & 10 kWh storage): The estimated cost for a combined system is approximately $33,870. The battery stores excess solar energy, which is critical for maximizing savings under SCE's current rules.
These costs are estimates. The final price depends on your specific roof, equipment choices, and installation details.
Incentives & Tax Credits
California Solar Incentives for 2026
While the 30% federal tax credit is no longer the default for systems installed in 2026, California homeowners still have a major financial advantage:
- Property Tax Exclusion: In California, installing a solar system does not increase your property taxes. This exclusion means you can add a valuable asset to your home—one that may improve resale appeal—without being penalized with a higher tax bill. This program is set to continue for systems installed through at least mid-2026.
The primary financial incentive is avoiding SCE's high and escalating electricity rates. By generating and storing your own power, you gain significant control over your monthly energy expenses.
Net Metering: Southern California Edison Co
Net Billing (low export)
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Understanding Export Rates with Southern California Edison
The way you're compensated for extra solar power has a huge impact on your savings. Under the current net billing structure, SCE buys your excess solar generation at a low "avoided cost" rate, which is far below the retail price you pay for electricity. This makes daytime exports financially inefficient.
This is precisely why a battery is so strongly recommended. Instead of exporting surplus energy for a low credit, you store it in your battery. When the sun goes down, you use that stored energy instead of buying expensive power from the grid. This self-consumption strategy is the key to maximizing solar savings in California today.
Projected Savings
How Solar Reduces Your SCE Bill
Your savings depend heavily on whether you add a battery. Under California's net billing tariff, the power you use directly from your panels is worth the full retail rate you avoid paying SCE (around $0.32/kWh). However, any excess power you export to the grid is only credited at a much lower rate (modeled here at ~$0.11/kWh).
- A solar-only system is projected to save an average Redondo Beach home about $2,216 annually, with an estimated payback period of 7.8 years.
- Adding a battery boosts annual savings to $3,308. The payback period is slightly longer at 8.5 years, but the long-term financial return is significantly higher because you store your valuable solar energy for evening use instead of selling it to SCE for pennies on the dollar.
If grid electricity becomes more expensive over time, rooftop generation can offset costlier power in future years, making the system even more valuable.