Facing high electricity bills from Southern California Edison can feel relentless, especially with average costs around $262 a month. In 2026, going solar is about more than just panels; it's about smart energy management. California's net billing rules mean the extra solar power you send to the grid is worth significantly less than the power you buy. This changes the math and makes pairing solar with a battery the most effective way to reduce your reliance on SCE and control your energy costs.
Run your scenario: the calculator uses this city’s utility and tariff data.
Open calculatorBenchmark Cost Analysis
2026 Solar & Battery Costs in the UC Irvine Area
For a typical home, here are the estimated installation costs. These figures represent the full system price, as the 30% federal tax credit for homeowners is no longer available for systems placed in service in 2026.
- 6.5 kW Solar-Only System: The estimated cost is around $16,575.
- 6.5 kW Solar System with a 10 kWh Battery: The combined system cost is approximately $31,575.
While the upfront cost is higher with a battery, the long-term savings are substantially better under current SCE rules. An owned solar system can also be a useful long-term home-value feature for potential buyers in Orange County.
Incentives & Tax Credits
California Solar Incentives for 2026
With the federal tax credit for residential solar having expired, California's state-level benefits are more important than ever. The primary financial advantage comes from offsetting high utility rates, but homeowners still benefit from a key incentive:
Property Tax Exclusion for Active Solar Systems: Under California law, the value added to your home by a solar panel installation is excluded from your property tax assessment. This means you get the benefit of a home improvement without the downside of a higher tax bill, a significant advantage that remains in effect.
There are no state income tax credits, so the savings are driven by bill reduction and this valuable property tax exclusion.
Net Metering: Southern California Edison Co
Net Billing (low export)
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Understanding Export Rates with Southern California Edison (SCE)
California's solar program is now a Net Billing Tariff (NBT). This isn't the 1-for-1 credit of the past. When your solar panels produce more electricity than your home is using, the excess power is sent to the grid.
SCE buys that power from you, but at a rate much lower than what they charge you. For example, you might pay SCE over $0.32 per kWh for electricity, but the exported solar power you sell back is only valued at a fraction of that, modeled here at around $0.11 per kWh. This is why storing your own solar energy in a battery for later use is so financially effective—you avoid both buying high and selling low.
Projected Savings
Modeled Bill Savings: Solar vs. Solar + Battery
Adding a battery dramatically improves your annual savings by allowing you to store the solar energy you generate during the day and use it at night. This minimizes the amount of expensive power you need to buy from SCE and avoids selling your excess solar back for low credits.
- A solar-only system is modeled to save an estimated $1,994 per year, with a payback period of about 7.6 years.
- A solar and battery system increases those savings significantly, with a modeled estimate of $2,960 per year and a payback of around 8.7 years.
The nearly $1,000 in extra annual savings makes the battery a powerful tool for maximizing your return on investment and protecting against future SCE rate hikes.