Is Solar Worth It in California in 2026?

Let me give you the honest answer…  the one you're not going to get from a rep who only has one product to sell you.

Yes. Solar is absolutely still worth it in California in 2026. But the way it works best has changed, and if someone is pitching you the same story they were telling in 2022, that's a problem.

Here's what you actually need to know- whether you're in San Diego, Orange County, Los Angeles, the Inland Empire, or anywhere else in Southern California.

Your Utility Bill Isn't Going Down. Ever.

It doesn't matter if you're an SDG&E customer in San Diego or an SCE customer in Riverside, Anaheim, or anywhere in between — your utility company has one direction: up.

The typical SDG&E customer's monthly bill climbed to just under $200 in 2026. From January 2022 to January 2023 alone, the average monthly SCE bill jumped from $191 to $225. And neither utility is done.

We are currently in the middle of a multi-year rate increase cycle that was already approved by the California Public Utilities Commission. Your utility doesn't need your permission to raise your bill. They just do it — every single year.

Every year you wait is another year paying their rate instead of a fixed, predictable amount you locked in on your own terms.

Something Just Changed With the Rate Schedules — And Most Homeowners Don't Know It Yet

Both SDG&E and SCE operate on Time-of-Use pricing, meaning what you pay depends not just on how much electricity you use, but when you use it.

Beginning May 1, 2026, SDG&E expanded weekday super off-peak hours to include 10 a.m. to 2 p.m. year-round — a window that was previously only classified as super off-peak during March and April. SCE has been making similar adjustments to its TOU windows as well.

What does that mean in plain English? The cheapest hours of the day just got longer. And for homeowners with solar and a battery, this shift makes the combination dramatically more valuable — in both territories.

Your panels produce the most power right in that midday window. A battery captures that energy and holds it for the expensive 4 p.m. to 9 p.m. peak window — when your utility is charging you the most. That's not a coincidence. That's exactly the setup that makes solar pencil out the best right now no matter which utility you're on.

Batteries Aren't Making Solar More Expensive — They're Making It Smarter

This is probably the biggest misconception I run into — whether I'm sitting at a kitchen table in Escondido or on a virtual call with a homeowner in Fresno or Bakersfield.

Homeowners hear "you need a battery too" and immediately think the price just doubled. That's not how it works.

Solar and battery systems typically achieve 6 to 8 year payback periods in San Diego, compared to 10 to 14 years for solar-only systems under NEM 3.0. The numbers are similarly compelling across SCE territory. Adding a battery actually shortens your payback — sometimes significantly.

The reason is simple. Under NEM 3.0, exporting excess solar to the grid during the day pays you about 5 to 8 cents per kWh. Buying that same electricity back during peak hours costs you 45 cents or more. A battery stops that from happening. Instead of giving your power away cheap and buying it back expensive, you keep it and use it when it actually counts.

That math holds whether you're in San Diego County or the middle of the SCE service area in LA County.

You Don't Have to Write a Big Check to Go Solar

A lot of homeowners still think going solar means a massive upfront investment. It doesn't have to, and this is true all throughout California.

There are options where you can get a fully installed solar and battery system on your home with zero money down and start saving from day one. The way these programs work, the solar company owns the system, claims the available federal tax incentives on their end, and passes those savings directly to you through a lower fixed monthly rate. For homeowners who structure their deal this way, the effective cost compared to a few years ago hasn't changed much at all.

You pay less than your current utility bill. Every month. Without touching your savings.

Is it right for everyone? Not necessarily. That's exactly why a real analysis of your specific situation matters before you decide anything, and that conversation looks different for an SDG&E customer in Chula Vista than it does for an SCE customer in Temecula or Long Beach.

So Why Are Some People Saying Solar Isn't Worth It Anymore?

Because some of the rules changed and a lot of it got misreported.

The 30% federal tax credit for homeowners who purchase a system outright did expire at the end of 2025. That's real. But the story that "solar incentives are gone" is flat out wrong. The incentives still exist - they just flow differently depending on how you structure your deal.

I do consultations virtually all throughout California and I hear this concern constantly. If someone is telling you the math doesn't work without first walking through your specific bill, your roof, your usage, and your goals - get a second opinion. You're entitled to one.

Which, not coincidentally, is exactly what I do.

The Bottom Line

Solar is worth it in California in 2026 for most homeowners — but the version that works best has changed. The winning combination right now is solar paired with battery storage, structured in a way that fits your household and your utility's specific rate schedule.

Whether you're in SDG&E territory, SCE territory, or somewhere else in California and want to do this virtually, the first step is the same. A real look at your numbers. Not a pitch. Not a one-size-fits-all proposal from a rep who can only offer one company's system.

That's what I'm here for.

— Rigo, My Solar Doc Independent Solar Broker | SDG&E & SCE Territory | Virtual Consultations Available Statewide