Solar Panel Cost in Los Angeles

Los Angeles is a great place to invest in solar energy. The Los Angeles Department of Water and Power (LADWP), which serves the city, and Southern California Edison (SCE), which serves the suburbs, both have high rates, which helps make solar even more attractive.

As of September 2022, the average cost of solar panels in Los Angeles, CA was $2.77/W. An average 5 kW solar system would cost between $11,772 to $15,928 with a gross price of $13,850. After deducting the 30% federal investment tax credit (ITC) and additional state and municipal solar incentives, the total cost of solar can be thousands of dollars lower.

Los Angeles Average Solar Panel Cost by System Size

System SizeSystem CostSystem Cost (after ITC)
3 kW$8,310$6,149
4 kW$11,080$8,199
5 kW$13,850$10,249
6 kW$16,620$12,299
7 kW$19,390$14,349
8 kW$22,160$16,398
9 kW$24,930$18,448
10 kW$27,700$20,498

Is it Worthwhile to Install Solar Panels in Los Angeles?

Yes, solar is a great investment in Los Angeles, California! Solar panels are worth it in most cases, but certain aspects, such as the cost of power, available incentives, the environment, and the sun angle, can all influence how soon you break even on your investment in comparison to other places.

The average cost of power in Los Angeles County is $25/kilowatt-hour (kWh), which means that installing a 5 kW solar system will save you $91,300 over the course of 20 years (assuming you pay upfront with cash). If you finance your solar system with a loan, you can start saving on day one in Los Angeles, CA. If you finance your solar system with a loan, you can start saving on day one in Los Angeles, CA. To learn more about how much you can save by going solar, check out our articles about why solar is worth it and how much you can save by going solar.

Why the cost of solar panels should not be your sole concern when purchasing solar panels for your house?

The most significant distinction between buying solar panels and any other purchase is that solar panels last 25-30 years. This is a very long time, and you will require customer service throughout. It was revealed that bigger corporate solar providers do not provide this help to their clients. That’s why we suggest that you look for a small or medium-sized, local, family-owned solar firm. These businesses are more concerned with you and your particular job. You don’t want to spend the next 25 years on hold at a corporation’s contact center!

Factors that influence the Price of House Solar Panels

The price of solar energy entails more than simply the equipment and installation; it also includes charges for permits, inspections, and installer profit margins.

The price of solar varies depending on where the installation is made because of these many components. For certain properties, the number of factors can determine how much it costs to build a solar power system, such as:

How much power do you use at home?

Houses with higher electricity consumption will require more solar panels to meet their energy requirements.

Solar panels do get more affordable per watt, but when additional panels are installed, the system’s overall cost will rise.

But the more money solar panels may save homeowners on their energy bills, the more energy a home uses.

What kind of solar panels do you choose?

Depending on the type of solar panel you pick, the cost of solar panels may change.

For home solar systems, monocrystalline and polycrystalline solar panels are the two basic types. Compared to other solar panels, monocrystalline solar panels are often more costly and more efficient. Polycrystalline panels are less expensive and have a lower efficiency rating.

Your solar system’s price will also be impacted by the type of inverter you choose to purchase.

Your solar installation’s quality

You can come across some solar quotations with pricing that look absurdly low.

If the installer quotes you a price that seems absurdly low, they may be employing substandard equipment or an unstable pricing strategy. Since you’ll be reliant on a solar installation for the next 25 years, you want to choose one that charges enough to continue in business.

It’s crucial to confirm that your installer is providing you with the greatest quality at the lowest cost. This is why it’s crucial to obtain many solar price quotations.

Federal, state, and local solar incentives

The solar incentives that are available might affect the overall cost of solar.

Homeowners in the United States are eligible to apply for the federal solar tax credit. By giving households a tax credit equivalent to 30% of the price of their installed solar panel system, the solar tax credit increases the cost-effectiveness of installing solar.

When combined with the federal solar tax credit, local solar tax incentives and rebates can wind up saving homeowners thousands on a solar installation.

Factors Influencing Solar Panel Prices in Los Angeles

Although the average cost of solar panels in Los Angeles is $5,446 per panel, your exact cost may be more or lower. There are several things that might have a substantial influence on the cost of installing solar panels. Some of the most crucial things to remember are listed below.

Size of Solar Equipment

Solar panel system prices vary by thousands of dollars because of a variety of reasons. The system size is one of the most important considerations. Higher efficiency or power output solar power systems need better technology and/or more equipment, both of which can boost prices. Each additional kilowatt requires an additional $2,730 in costs. Another major cost consideration is the type of solar panels and equipment you choose. More efficient solar panels, such as monocrystalline panels, tend to be more expensive. Furthermore, solar equipment includes more than simply solar panels. You’ll also need to consider the type of racks used to attach the panels, inverters, solar batteries, and so on. It’s critical to consider all of this while shopping for a solar system that fits within your budget.

Solar Financing Terms

Solar loans are a popular choice if purchasing a solar system outright is not feasible for you since they lower your upfront expenses and let you pay for your system over an average of five to seven years. In your final cost estimate, it’s a good idea to account for the interest you’ll have to pay. If you can afford to make a larger down payment upfront, you can lower your total costs and shorten the loan’s repayment period.

Solar Panel Installation Company

Your final cost may vary depending on which solar contractor you hire to conduct your transition to renewable energy. In Los Angeles, there are around three businesses that install solar energy, and their rates for labor and supplies vary. Some businesses in Los Angeles also know more about local solar incentives and may advise you on how to take advantage of further rebates or tax exemptions. However, they could bill you extra for that service. Even while they initially cost more, they can wind up saving you more money over time.

How to Save on Solar Panels

In Los Angeles, there are a lot of companies to choose from, and some homeowners find themselves bombarded with choices. It might be difficult to choose the best business for you, therefore here are some suggestions to help you:

Reputation: Long-standing businesses are likely to have a positive reputation. This is crucial because it guarantees that it will complete your solar installation and offer proper aftercare and customer services, such as part repairs and replacements.

Warranty: Many Solar businesses give various warranties with various levels of coverage. The ideal warranty lasts for 25 years.

Contract: Even though properly reading a contract might take a lot of time, it’s crucial to do so to ensure that you understand the costs associated with the equipment and services as well as the warranty’s conditions.

Solar Panel Brands: Depending on their requirement for efficiency and the structure of their roofs, homeowners will have varying choices for solar panels. Although there are several solar panel types available, not every company will have access to the precise one you may want or need, so make sure to review their list of offers before making a choice.