With Southern California Edison (SCE) electricity rates pushing past $0.32 per kilowatt-hour, many homeowners in the El Camino Real area of Orange County are evaluating rooftop solar. In 2026, the financial equation for solar has shifted. The focus is now on maximizing self-consumption, especially since the value of power sent back to the grid is lower than the retail price. This makes understanding your savings potential more important than ever.
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2026 Solar & Battery Costs in El Camino Real
For a typical home in this part of Orange County, here are the estimated installation costs for 2026, keeping in mind the federal residential tax credit is no longer available for new systems.
- Solar-Only System (6.5 kW): The estimated gross cost is around $16,575. This system is designed to offset a significant portion of a household's electricity usage during daylight hours.
- Solar + Battery System (6.5 kW panels & 10 kWh battery): The estimated gross cost for a combined system is approximately $31,575. The battery allows you to store excess solar energy for use in the evening.
An owned solar system can also be a useful long-term home-value feature, adding to its appeal for future buyers beyond the immediate bill savings.
Incentives & Tax Credits
California Solar Incentives for 2026
While the 30% federal tax credit for homeowners expired at the end of 2025, California residents still have access to valuable state-level benefits that make solar a strong investment.
- Property Tax Exclusion for Active Solar Systems: This is a major California benefit. When you install a solar system, the value it adds to your home is excluded from your property tax assessment. You get the home value boost without the higher tax bill.
- High Retail Electricity Rates: The high cost of power from SCE acts as its own incentive. The more expensive grid power becomes, the more valuable each kilowatt-hour of solar energy you produce becomes.
- Net Billing Program: While not a traditional incentive, the ability to earn credits for exported energy still helps reduce your overall bill, even at a lower rate.
Net Metering: Southern California Edison Co
Net Billing (low export)
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Understanding Net Billing in Southern California
California's energy policy, often called Net Billing or NEM 3.0, has changed how solar owners are compensated. Under these rules, the electricity you buy from SCE is far more expensive than the credit you receive for the excess electricity you send back to the grid.
For example, you might pay $0.323 per kWh for power you use in the evening, but only receive a credit of around $0.113 per kWh for the extra solar power your panels export during the day. This difference is why storing your solar energy in a battery for later use is now the most effective way to maximize your savings.
Projected Savings
How Solar Saves You Money with SCE
High electricity prices from SCE mean that every kilowatt-hour of solar energy you use directly in your home provides significant value. The key is to use the energy you generate instead of selling it back to the grid for a lower price.
Here’s how the numbers break down for an average home:
- A 6.5 kW solar-only system is projected to save about $1,994 per year. The payback period for this investment is estimated at 7.6 years.
- Adding a 10 kWh battery dramatically increases the amount of solar energy you can use yourself. By storing daytime excess power for nighttime use, the projected annual savings jump to $2,960. While the initial cost is higher, the payback period is only slightly longer at 8.7 years, and your savings are nearly 50% greater each year.
If grid electricity becomes more expensive over time, rooftop generation can offset even costlier power in future years, making your investment more valuable.