Is investing in rooftop solar still a smart financial move in Redlands for 2026? With Southern California Edison (SCE) rates near $0.323/kWh and hot summers driving up cooling costs, generating your own power is more attractive than ever. But the rules for getting value from that power have evolved. The key to maximizing your return on investment now lies in using as much of your own solar energy as possible, rather than selling it back to the grid for a low credit.
This guide breaks down the real costs and savings for a typical Redlands home, explaining why pairing solar panels with a battery has become the standard for achieving the best financial outcome under SCE's current net billing tariff.
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How Much Do Solar Panels Cost in Redlands? (2026 Estimates)
For an average Redlands household with a monthly electric bill around $290, a 7.1 kW solar system is a common size. Here are the estimated costs for installation in early 2026, before any state or local incentives are applied.
- Solar Only System (7.1 kW): Estimated Gross Cost: $18,105
- Solar + Battery System (7.1 kW panels, 10 kWh battery): Estimated Gross Cost: $33,105
It's important to remember that the 30% federal tax credit for homeowners expired at the end of 2025. However, California's own pro-solar policies, like the property tax exclusion, continue to provide significant financial benefits.
Incentives & Tax Credits
California's 2026 Solar Incentives
While the federal ITC is gone for new residential systems, California provides strong support for homeowners adopting solar energy.
- Property Tax Exclusion for Solar Systems: When you install a solar system, the value of your Redlands home increases, but your property taxes won't. This state-level exclusion prevents you from being taxed on the value your solar panels add.
- High Retail Electricity Rates: SCE's high electricity prices are, in themselves, a powerful incentive. The more expensive grid power becomes, the more valuable each kilowatt-hour you generate and use at home is.
- Battery Storage Incentives: While not guaranteed, some programs may offer rebates or incentives for adding battery storage. An expert local installer can help you identify any current opportunities.
Net Metering: Southern California Edison Co
Net Billing (low export)
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Navigating SCE's Net Billing Tariff (NBT)
Southern California Edison's current solar program is a net billing tariff. This is different from older net metering programs. Here’s the simple breakdown:
- Energy you generate and use instantly: This is the most valuable part of solar. You avoid buying that power from SCE at the full retail rate (around $0.323/kWh).
- Excess energy you export to the grid: Any power you don't use or store is sent to the grid. SCE buys this power from you at a much lower “avoided cost” rate, which is modeled here at a conservative $0.113/kWh.
This structure is precisely why a battery is recommended. It allows you to store your valuable solar energy instead of exporting it for a low credit, letting you use it to power your home when the sun isn't shining.
Projected Savings
Projected Annual Savings with Solar in Redlands
Installing a solar-only system in Redlands can cut your electricity costs significantly, with modeled annual savings around $2,216 and a payback period of about 7.5 years.
Adding a battery, however, unlocks a much higher level of savings. By storing your excess solar power for evening use, you avoid selling it to SCE for a low price and buying it back at the high retail rate. This strategy boosts your annual savings to approximately $3,308. The payback period with a battery is just slightly longer at 8.3 years, but the long-term financial return is substantially greater. An owned solar system can also be a useful long-term home-value feature, making it an investment in your property's future appeal.