Los Angeles solar panels
Solar panels appeal to many homeowners for benefits like electricity bill savings and reducing your carbon footprint and energy grid dependence. If you are a Los Angeles resident, solar panels can significantly reduce your monthly energy bills and protect you from electricity rate increases in the coming years.
If you’re considering solar, read on to learn about the costs of solar panels in Los Angeles, local solar incentives, Los Angeles solar companies, and how much you could save by investing in solar panels.
Cost of solar panels in Los Angeles
Solar panels are a custom product — the size, components, and cost of every system will differ depending on the household. The cost of solar panels in Los Angeles (and across the U.S.) is measured in dollars per watt, but the size of solar panel arrays is shown in kilowatts (kW). There is one kW for 1,000 watts. According to the Lawrence Berkeley National Laboratory, the national average solar panel system is 8.6 kW and costs $3.67 per watt, for a total installed cost of approximately $31,558.
How much do solar panels cost in Los Angeles in 2023?
The cost of solar panels varies depending on several factors, including location, installer, and your energy usage. The price you are quoted in Los Angeles could differ from someone in a neighboring city. Data from Find Energy shows the average cost of solar panels in California is $3.47 per watt and most homes need a 5 kW system to cover their household usage. The total average cost of solar panels in California is about $17,350 before factoring in tax credits and incentives.
Investing in solar panels can lead to significant savings in Los Angeles because California residents typically pay high electricity rates. In July 2022, the average electric rate in California (29.58 cents per kWh) was almost 86% higher than the U.S. average (15.91 cents per kWh), according to data from the Energy Information Administration (EIA). Using the 2022 average rate and the typical usage level in California (535 kWh per month), residents paid a monthly electricity bill of $140, or $1,680 for the year. If you invest in a solar panel array that completely covers your energy usage, you could save more than $1,600 every year.
Average solar panel cost by system size in Los Angeles
Typically, the larger the solar panel system, the higher the price. The following table uses the $3.47 per watt price from Find Energy to show the average cost of solar panels based on the size of the system, as well as the typical number of panels a system would need.
| System size | Total cost | Number of solar panels* |
|---|
| 3 kW | $10,410 | 7–10 |
| 5 kW | $17,350 | 13–17 |
| 7 kW | $24,290 | 18–23 |
*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.
Understand your monthly energy consumption to determine how large of a solar array you need. SaveOnEnergy can help you estimate how much energy you need your solar system to produce each month.
Get your free solar savings estimate
You can significantly lower your energy costs by investing in solar panels. Enter some basic information below and we’ll provide an instant, free estimate of solar cost and savings for your home.
Incentives for solar panels in Los Angeles
There are several Los Angeles solar incentives to help homeowners offset the initial cost of going solar. The most lucrative incentive is the Residential Clean Energy Credit, a federal tax credit offering 30% of the cost of a solar array in the form of a credit when you file your annual tax return. The federal tax credit alone is valued at about $5,205 based on the typical cost of solar panels in Los Angeles.
The following table highlights several Los Angeles solar incentives to know about.
Net metering in Los Angeles
As of April 15, 2023, a new net metering program (NEM 3.0) went into effect in California, decreasing the credit customers receive for sending excess solar energy to the power grid. The changes to net metering in Los Angeles and across California could impact the time it takes to experience a return on investment for solar panels. California net metering participants should understand how the changes will affect their energy bill.
Solar companies in Los Angeles
There are hundreds of solar installers operating throughout California, giving you a variety of options for a Los Angeles solar company. Before signing a contract with an installer, we recommend getting quotes from multiple companies, asking about the financing options available, and thoroughly reading the terms and conditions of the contract.
SaveOnEnergy partners with top-tier solar installers and can connect you with the best solar companies in Los Angeles. You can also explore our solar panel installation resources to learn more about the process. To receive more details about the cost, savings, and installers available for your home, enter your information on this page for a solar estimate.
Is going solar in Los Angeles right for you?
There are many ways to finance solar based on your living situation or payment preferences. We’ve covered a few of the main solar financing options.
Solar for renters
For renters, it’s not just a matter of calling an installer to put solar panels on your roof. Unless your landlord installs the array, you cannot make structural changes to your residence. If you rent your home, you should consider community solar options, which don’t require installation on your roof. In a community solar program, groups of residents subscribe to a large shared solar system in a central location. The energy from that system powers all of the subscriber’s homes. It can be a more affordable solution for residents who don’t want the burden of a long-term lease.
Solar for homeowners
Homeowners can install solar panels directly on their roofs if it is in good condition and receives direct sunlight. Buying your solar panels will allow you to increase your home’s resale value and save money on energy costs in the long term. You can also access the 30% federal tax credit and other solar incentives when you purchase upfront. If purchasing solar panels outright isn’t a feasible option for you, consider taking out a solar loan.
Community solar
In a community solar program, groups of residents subscribe to a large shared solar system in a central location. The energy from that system powers all of the subscriber’s homes. It can be a more affordable solution for residents who don’t want the burden of a long-term lease. It’s also helpful for people who don’t have an optimal home for solar panels, such as with roofs that do not receive direct sunlight, are not in good condition, or are not angled to face the sun at an optimal degree.
