Sky-high electric bills from Southern California Edison (SCE) are a constant concern in Orange County. Worse yet, the utility's Net Billing (NEM 3.0) policy has drastically reduced the value of sending excess solar power back to the grid. For homeowners in Tustin, this has changed the game entirely, making solar batteries an essential component for achieving real energy savings and independence.
Benchmark Cost Analysis
What's the Realistic Cost for a Solar & Battery System in 2026?
A solar-only system might look tempting upfront at roughly $11,500, but it leaves you exposed to NEM 3.0's low export rates. That's why most Tustin households are now opting for a combined solar and battery system. The typical gross cost is around $23,500. After applying the 30% federal tax credit, the net cost drops to approximately $16,450. While a higher initial investment, this setup delivers a much faster path to energy freedom and a more reliable payback of about 9-10 years.
Incentives & Tax Credits
Available Solar Incentives for Tustin Homeowners
The primary financial incentive is the federal Residential Clean Energy Credit, which allows you to deduct 30% of the total system cost (including the battery) from your federal taxes. That's a $7,050 credit on a $23,500 system. Additionally, California's Property Tax Exclusion means your home's assessed value won't increase because of the solar installation, saving you hundreds each year.
Net Metering: Southern California Edison (SCE)
NEM 3.0 (2023)
Critical 🔋
Navigating SCE's Net Billing Tariff (NEM 3.0)
The core challenge for Tustin homeowners is NEM 3.0. Under this policy, SCE buys your excess daytime solar energy for an average of just 5-8¢ per kWh. But when you need to buy power back from them during the evening peak (4-9 PM), you pay upwards of 30-40¢ per kWh. A solar-only system gives away valuable energy for pennies, only to buy it back for dollars. Adding a battery is the clear solution—it stores your excess solar power so you can use it yourself during those expensive peak hours, maximizing your savings and energy independence.
Projected Savings
How Much Can You Really Save with Solar + Battery?
With an average electric bill hitting $267, the potential savings are significant. A properly sized solar and battery system in Tustin can offset over 80% of your SCE bill, saving an average of $1,701 annually. This strategy avoids selling your energy cheap and buying it back expensive. Instead, you create and use your own power around the clock, protecting your household from SCE's constant rate hikes and unpredictable Time-of-Use charges.