With Southern California Edison's (SCE) switch to NEM 3.0, many in Montclair are asking if solar panels are still a smart financial move. The short answer is yes, but the strategy has changed. The old model of 'selling back' power is gone. In 2026, the key to saving money with solar in the Inland Empire is achieving energy self-sufficiency with battery storage, especially to combat those punishing summer AC bills.
Benchmark Cost Analysis
What's the Actual Cost in 2026?
Focusing on the realistic path to savings, the all-in price for a solar-plus-battery system is what matters. A standard installation in Montclair runs about $23,500 before incentives. While a 'solar-only' system is advertised for much less (around $11,500), its limited savings under NEM 3.0 make it an impractical choice for most. The numbers show the combined system is the superior long-term investment.
Incentives & Tax Credits
Making the System Affordable: Tax Credits & Exemptions
You don't have to pay the full gross cost. The primary incentive is the 30% Federal Solar Tax Credit, which reduces a $23,500 system cost by $7,050, bringing your final net cost down to $16,450. This credit applies to both the solar panels and the battery storage. Additionally, your home's value will increase, but thanks to California's Property Tax Exemption for solar, your property tax bill won't.
Net Metering: Southern California Edison (SCE)
NEM 3.0 (2023)
Critical 🔋
The New Reality: Why NEM 3.0 Requires a Battery
California's Net Billing tariff, or NEM 3.0, was designed to encourage homeowners to use their solar power onsite rather than exporting it to the grid. Here’s the breakdown:
- Low Export Rates: SCE now pays you just a fraction of the retail rate (around $0.05 - $0.08/kWh) for any excess solar energy you send to the grid.
- High Peak Rates: At the same time, SCE charges you high rates (often $0.45/kWh or more) for electricity you use during 'peak' hours from 4 PM to 9 PM.
This policy makes a battery almost mandatory. By storing your excess solar power, you can use your own clean energy during those expensive evening hours instead of selling it for cheap and buying it back for a premium.
Projected Savings
Real Savings with a Solar + Battery System in Montclair
For a typical household in Montclair paying around $243 per month for electricity, adding a correctly sized solar and battery system can lead to annual savings of over $1,500. Your system prioritizes self-consumption, first powering your home during the day, then charging the battery. When the sun sets and SCE's rates spike, your battery takes over. This self-reliance provides a stable payback of around 10 to 11 years, insulating you from future SCE rate hikes.