Does Rooftop Solar Still Make Sense in Montclair Without Federal Tax Credits?
For many homeowners in Montclair, the end of the 30% federal solar tax credit raises a big question: is solar still a good investment in 2026? The answer is yes, but the financial strategy has shifted. With Southern California Edison's (SCE) electricity rates at $0.323/kWh, generating your own power is more valuable than ever, especially during hot Inland Empire summers when air conditioning use soars. The key is to use or store every kilowatt-hour you produce to avoid selling it back to the grid for a fraction of what it costs to buy.
Get a quick estimate tied to local rates and sun hours.
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Typical 2026 Solar Installation Costs in Montclair
Understanding the upfront investment is the first step. For a home with an average electric bill, an 8.6 kW system is a common size. Here’s a look at the estimated costs for installation in 2026, keeping in mind that the federal ITC no longer applies.
- 8.6 kW Solar-Only System: The estimated gross cost is $21,930. This system generates power during sunny hours to offset your home's immediate energy needs.
- 8.6 kW Solar System with 10 kWh Battery: The estimated gross cost for a combined system is $36,930. The battery stores surplus energy generated during the day for you to use at night.
While the battery adds to the initial cost, it plays a crucial role in maximizing your long-term savings under SCE's current rules.
Incentives & Tax Credits
What Solar Incentives Are Left in California?
With the federal tax credit off the table for 2026 installations, California's state and utility-driven benefits are more important than ever. These policies are what keep solar a strong financial choice.
- No Property Tax Increase: California law prevents your property taxes from going up due to the added value of your solar panel system. This valuable exclusion is available for systems installed before its scheduled expiration.
- High Rate Avoidance: The most significant incentive is avoiding SCE's high electricity rates. Every bit of solar power you use at home directly offsets electricity you would have bought for over 32 cents per kWh.
- Energy Storage Value: The low export credits under net billing create a strong financial case for batteries. By storing your solar energy, you are essentially 'cashing in' on the full retail value of your power instead of giving it away to the grid for less.
Net Metering: Southern California Edison Co
Net Billing (low export)
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How Southern California Edison's Net Billing Works
Under the current net billing system, SCE treats the electricity you buy and the excess electricity you sell very differently. When you draw power from the grid, you pay the full retail rate of $0.323/kWh. However, when your solar panels produce more energy than you can use at that moment and you export it, SCE credits you at a much lower rate, estimated around $0.113/kWh.
This price difference means that self-consuming your solar power is about three times more valuable than exporting it. A home battery makes this possible by creating your own personal energy reserve, ensuring you get the maximum value from your investment.
Projected Savings
Maximizing Your Annual Bill Savings with a Battery
The biggest change in solar economics is how you get value from your system. Simply exporting power is no longer the most profitable approach. Here’s how the savings break down:
- A solar-only system is modeled to save a Montclair household around $2,216 annually, with a payback estimate of 8.9 years.
- By adding a 10 kWh battery, the same solar array can generate $3,308 in annual savings. The payback period is nearly identical at 9.1 years, but you gain an extra $1,092 in savings each year.
This extra savings comes from avoiding the purchase of expensive evening power from SCE. Furthermore, an owned solar and battery system can enhance your home's resale appeal, offering future value beyond the monthly utility bill reduction.