Is rooftop solar still a smart investment for homeowners in Tustin in 2026? With Southern California Edison (SCE) rates climbing and average electric bills hitting nearly $320, generating your own power is more appealing than ever. However, with the federal tax credit gone for new systems and SCE's export compensation rules, the best way to save money has shifted. The focus is now on using your solar power yourself, not just selling it back to the grid.
From rates to ROI—continue in the savings calculator.
Open calculatorBenchmark Cost Analysis
2026 Solar & Battery Costs in Tustin
To offset a typical Tustin household's electricity usage, a 7.9 kW solar panel system is a common size. The estimated gross cost for this system in early 2026 is around $20,145.
Because exporting power to SCE's grid provides a low credit, pairing your system with a battery is highly recommended. A 7.9 kW solar system combined with a 10 kWh battery has an estimated cost of $35,145. This investment allows you to store your excess solar energy generated during the day and use it during the evening, which is when SCE's rates are often highest. An owned solar system may also support the resale appeal of your home down the line.
Incentives & Tax Credits
Key California Solar Incentive for 2026
Even though the 30% federal tax credit for homeowners is no longer in effect for systems placed in service in 2026, a crucial California-specific benefit remains:
- Property Tax Exclusion for Active Solar Systems: When you install a solar panel system on your home, its value is excluded from your property tax assessment. This means you get the benefit of a home improvement and lower energy bills without the downside of a higher property tax bill. This exclusion is a significant financial advantage for California homeowners.
Net Metering: Southern California Edison Co
Net Billing (low export)
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How SCE's Net Billing Affects Solar Payback
Under the current rules from Southern California Edison, the concept is simple: the electricity you buy from the grid is expensive, while the excess electricity you sell back is credited at a much lower rate. This model uses an estimated export value of $0.113 per kWh, compared to the retail purchase price of $0.323 per kWh.
This price difference makes a battery a powerful tool. Instead of exporting your valuable solar energy for pennies on the dollar, a battery stores it for you to use when you need it most—typically in the evening. This strategy of 'self-consumption' is the most effective way to maximize your solar investment and reduce your reliance on SCE.
Projected Savings
Projected Monthly and Annual Savings
Solar savings in Tustin are driven by avoiding SCE's high retail electricity rate of $0.323 per kWh. The more solar power you can use directly, the more you save.
- A 7.9 kW solar-only system is modeled to save approximately $2,438 annually, with an estimated payback period of 7.6 years.
- Adding a 10 kWh battery significantly increases your savings to about $3,657 per year. The battery helps you avoid buying expensive evening power from the grid, and the combined system has a very similar payback period of just 8.0 years.
Protecting your budget against future utility rate hikes is another key benefit. As grid power gets more expensive, the value of your self-generated solar energy increases.