Navigating High Electricity Bills in Northwood
For homeowners in the Northwood area of Irvine, electricity bills from Southern California Edison (SCE) can be a significant monthly expense, with average costs around $291. With retail rates at approximately $0.32 per kWh, finding ways to reduce that spending is a priority. Rooftop solar offers a direct path to generating your own power, but the financial outcome in 2026 depends heavily on how you use that energy, especially with current net billing rules.
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Solar & Battery System Costs in Northwood (2026)
The cost of a solar installation is based on system size, equipment, and whether you include a home battery. Here are modeled estimates for a typical Northwood home, reflecting early 2026 pricing without a federal tax credit.
- Solar-Only System (7.2 kW): The estimated gross cost is around $18,360. This system is sized to offset a significant portion of the average local electricity bill.
- Solar + Battery System (7.2 kW solar with 10 kWh battery): Adding a battery increases the total estimated cost to $33,360. While the upfront cost is higher, the battery is recommended to maximize your savings under SCE's current tariff structure.
Incentives & Tax Credits
California Solar Incentives for 2026
While the 30% federal tax credit for homeowners is no longer the default for systems installed in 2026, California residents still have access to meaningful financial benefits that support the decision to go solar.
- Property Tax Exclusion: In California, adding a solar system does not increase your property taxes. The added value of the solar installation is excluded from your home's valuation for tax purposes, a benefit currently in place for systems installed through mid-2026.
- No State Tax Credit, But High Self-Consumption Value: California does not offer a state income tax credit, but the state's high retail electricity rates create a powerful built-in incentive. Every kilowatt-hour of solar energy you use at home is a kilowatt-hour you don't have to buy from SCE at their high rates. This makes self-consumption, especially with a battery, extremely valuable.
An owned solar system can also be a strong selling point for future homebuyers, potentially adding to your home's resale appeal.
Net Metering: Southern California Edison Co
Net Billing (low export)
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Understanding Export Rates with Southern California Edison
Under California's Net Billing Tariff (NBT), the value of solar energy you send back to the grid is lower than the retail price of electricity you buy from SCE. Our model uses an estimated export value of around $0.11 per kWh, compared to a purchase price of over $0.32 per kWh. This difference is why simply producing excess power isn't enough; you save the most by using it yourself. A battery allows you to store your excess solar power instead of exporting it for a low credit, then use that stored energy at night instead of buying expensive power from the grid.
Projected Savings
How Much Can You Actually Save on Your SCE Bill?
Savings with solar are no longer just about how much power you generate, but how much of that power you use yourself. Because SCE credits you less for exported energy than what they charge you for imported energy, using your own solar power directly is the key to maximizing value.
- A 7.2 kW solar-only system is modeled to save an estimated $2,216 annually, with a payback period of about 7.6 years.
- Pairing that system with a 10 kWh battery significantly increases savings to an estimated $3,308 annually. The battery lets you store solar energy produced during the day and use it during the evening, avoiding expensive grid power. This pushes the payback period to around 8.3 years but delivers much greater long-term financial benefit and provides backup power during outages.
These savings can become even more valuable over time. If grid electricity from SCE becomes more expensive in future years, your rooftop generation will be offsetting costlier power, improving your return on investment.