The federal residential clean energy credit ended for systems after December 31, 2025. It had covered a large share of system cost for years, so its removal is a genuine change and worth being straight about. The question now is whether solar still makes financial sense in Los Angeles without it. For most owner occupied homes with real air conditioning use, it does, but the reasoning has changed.
Tax matters depend on your circumstances, so confirm your own position with a tax professional before deciding.
What still works in solar’s favour
- Sun. The San Fernando Valley gets strong, consistent sun. A correctly oriented array here produces more per panel than the same system in most of the country.
- Air conditioning load. Valley summers mean heavy afternoon cooling, which is exactly when panels produce. Offsetting peak usage is where solar pays best.
- Rates rise. Every year of higher electricity prices improves the return on a system bought at today’s price.
- LADWP net metering. Customers inside the City of Los Angeles are served by LADWP, a municipal utility that runs its own net metering programme. It is separate from the state’s net billing rules that apply to Southern California Edison and the other investor owned utilities. If you are in Encino, Woodland Hills, Northridge or anywhere else inside the city, check the LADWP terms rather than assuming the Edison rules apply to you.
What changed, and what it means
Without the federal credit, the upfront price is the price. That puts more weight on three things: buying a system sized to your actual usage rather than an oversized one, getting an installation that performs for its full life, and choosing finance terms that do not quietly eat the savings.
Sizing matters more than it used to
Oversized systems were easier to justify when a credit absorbed part of the cost. Now every extra panel has to earn its place. We design from 12 months of your actual electricity usage, not a rule of thumb based on roof area or house size. That usually means a smaller, better placed array than homeowners expect.
Financing instead of a tax credit
We offer solar and battery financing for qualified customers, with zero down, fixed monthly payments and no annual payment increase. Qualified customers may see an immediate 30 to 40 percent lower price through the available financing structure, with ownership of the system beginning in year 6 and the option to pay it off after installation. Approval and terms depend on the customer, the project and the lender, so treat the figures as a starting point for a conversation rather than a quote.
Where batteries fit
A battery stores afternoon production for evening use and keeps essential circuits running during an outage. Whether it pays depends on your rate structure and how much you value backup power. It is a separate decision from the panels, and we would rather talk it through than bundle it automatically.
How to compare solar quotes
Quotes are hard to compare because companies present them differently. Reduce each one to the same four facts and the picture clears up:
- System size in kW and estimated annual production in kWh. Production matters more than panel count, because it reflects orientation and shading on your roof.
- Total price before any financing. Monthly payments hide the actual cost of the system.
- Equipment, named. Panel and inverter make and model, and the warranty length on each.
- What the finance costs. Term, rate, any dealer fee, and what happens if you pay it off early.
If two quotes differ sharply on estimated production for the same roof, one of them is optimistic. Ask to see the shade analysis behind it.
What payback actually depends on
Nobody can promise a payback period, because it rests on things no installer controls: how much electricity you use and when, what your utility charges now and in future, and how the system is financed. What we can do is model it from your own 12 months of usage and show the assumptions, so you can see which parts are solid and which are estimates. Be wary of any projection that assumes steep annual rate rises, since that is what makes an unattractive system look good on paper.
Who solar does not suit
We say no fairly often. Solar is a poor fit if you do not own the property, if your electricity use is genuinely low, if the roof is heavily shaded through the middle of the day, or if you expect to move within a couple of years. It is also the wrong order of work if the roof needs replacing first, which we cover in replacing your roof before solar.
Common questions
Is the federal tax credit really gone?
The residential credit ended for systems after December 31, 2025. Check your own eligibility with a tax professional.
Do I have to own my home?
Yes. You need to be the owner listed on the property title, and we ask for 12 months of electricity usage to size the system.
How long does installation take?
Panels usually go on in one to three days. Design, permits and utility approval make the full timeline longer.
For an honest assessment of whether solar pays on your roof, call (888) 271-7675 or read more about our solar and battery installation service.