Solar Panels in Los Angeles

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What Do You Need to Know About Solar Panel Installations in Los Angeles?

For many people, Los Angeles evokes images of sun-soaked streets and warm, beautiful weather. It should come as no surprise, then, that LA often tops the list of the best solar cities in the United States. The rate of solar panel installations in Los Angeles leads the country thanks to a very favorable situation for homeowners shopping for solar. Considering what solar panels cost in Los Angeles compared to typical electricity rates, it’s easy to see how solar power Los Angeles residential systems can offer huge savings.

Below, we’ll take a look at the cost of solar panels Los Angeles and explore why so many people are going solar.

Los Angeles California Skyline

How Much Do Solar Panels Cost in Los Angeles?

No matter how much solar energy is available, going solar only makes sense if the cost of solar power Los Angeles is reasonable. Thankfully, the price of installing solar panels Los Angeles County is lower than ever. Among other factors, California’s decision to require that all new homes be outfitted with solar beginning in 2020 has helped to make solar energy a major priority. As a result, every LA homeowner shopping for solar stands to benefit.

So, how much do solar panels cost in Los Angeles? Let’s dig into the details to find out. We’ll look at the statistics for the average solar system in LA in order to get a baseline.

According to data gathered in 2017, here’s how the cost of solar panel installation Los Angeles breaks down after including the federal solar tax credit:

  • The average cost for solar panels in Los Angeles is $3.15 per watt.
  • The average system size in LA is 5.8 kilowatts.
  • The average price of a solar system in LA is $18,298.

How Does the Cost of Solar in Los Angeles Compare?

Now that we have established the average solar energy system cost and size for Los Angeles, we need to put those numbers into context.

  • Is the average cost of solar in Los Angeles more or less than in other parts of California?
  • How does it compare to the average figures for the United States as a whole?

This is important information that can help you better understand how much you’re paying and whether solar Los Angeles is a good deal for you.

Because costs vary depending on the scale of the installation, we’ll look at systems of varying sizes for a more comprehensive picture. For a 3.0-kilowatt system, the average price of a solar system in LA is $6,972. The same system costs an average of $7,119 statewide and the U.S. average cost is $7,161. Moving up, a 6.0-kilowatt system represents roughly the average system size in the U.S. This system costs an average of $13,944 in Los Angeles. This compares to $14,238 for California and $14,322 for the national average. For a 10.0-kilowatt system, LA checks in at an average of $23,240. California averages $23,730 while national installations average $23,870.

3.0 – kilowatt system

The average price of a solar system in LA is $6,972

U.S. average cost is $7,161

6.0 – kilowatt system 

This system costs an average of $13,944 in Los Angeles.

U.S average cost is $14,322

10.0 – kilowatt system

LA checks in at an average of $23,240

U.S national installations average is $23,870

What California Solar Rebates and Incentives Are Available in Los Angeles?

One of the best things about going solar is that many systems are eligible for cost-saving rebates and incentives. These incentives may be offered through federal or state-level programs, local government initiatives, utility companies or other organizations.

Not surprisingly, California solar rebates are known to be among the best in the nation. Even better, a solar panel system Los Angeles may qualify for additional incentives that aren’t available elsewhere.

Here are the ways homeowners shopping for solar in LA can potentially lower their solar energy system cost.


Commonly known as the federal solar tax credit, the Investment Tax Credit (ITC) is by far the most lucrative incentive when it comes to offsetting the cost of solar energy. The ITC is available to all homeowners who install qualifying solar energy systems on their property. However, it’s important to note that the program is currently scheduled to step down its credits before eventually expiring at the end of 2021.

Installing a solar panel system Los Angeles between now and 2020 will earn a credit equal to 30 percent of the total installation cost.

Systems installed in 2020 will earn a 26 percent credit and those installed in 2021 will receive 22 percent. To ensure the maximum savings, it’s a good idea to act quickly.


As a national leader in solar energy, California has taken a number of steps at the state level to help make solar systems more affordable and appealing for homeowners. One of the most significant steps is the state’s property tax exclusion policy for active solar energy systems.

The policy may sound complicated, but it’s actually very simple. Most home improvements and additions that increase the value of your home require you to pay taxes on the added value. With California’s tax exclusion policy, you won’t pay an extra cent. Any system installed before December 31, 2024, is fully exempt from added property taxes as long as the home remains with its current owner.


Homeowners looking to install solar in Los Angeles are especially fortunate when it comes to rebates and incentives on the local level. That’s because the Los Angeles Department of Water and Power (LADWP) offers its roughly two million customers a major rebate for installing solar panels Los Angeles County.

The Solar Incentive Program rewards customers who go solar with a generous rebate of $0.25 per watt of installed solar capacity. Note that capacity is measured by the CEC-AC standard, so values may differ from your system’s advertised size. Nonetheless, the savings are significant. A typical 6.0-kilowatt system costs an average of $12,894 with the LADWP rebate program compared to $13,944 without the rebate. A number of other incentives and programs may also be available for qualifying installations.

Net Metering

Another way to save and maximize the effectiveness of going solar is net metering. Due to fluctuations in both electricity consumption and solar generation, there are bound to be periods of time in which a solar system generates more energy than a home can use. When that happens, net metering in California allows homeowners to send their surplus electricity back to the grid in return for credits on their bill. These credits can then be used to offset utility costs whenever the home needs to draw additional power back from the grid. This ensures that homeowners always benefit from the maximum generating capacity of their solar energy system.

Is Solar Power Los Angeles a Smart Investment?

Installing a solar panel system is a big decision. It represents a major investment and it’s important to consider all of the pros and cons of solar. Of course, there’s a reason why solar power in Los Angeles leads the country. The average cost for solar panels in Los Angeles is lower than the average cost both in California and across the United States. A variety of California solar panel rebates can help to lower the cost even more. Los Angeles also features an abundance of available solar energy. Factoring in LA’s relatively high electricity costs, installing a solar energy system may offer significant savings.

Taking all of this into account, there’s no doubt that a solar panel system Los Angeles is a wise investment for most homeowners. The cost of solar panels Los Angeles and the potential for savings may vary depending on the size of the system and the specific circumstances, but it’s clear that sunshine is set to power a major part of the city’s future. If you’d like to tap into these savings and do the environment some good in the process, there’s no better time than now to join the solar energy movement in the City of Angels.

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