09/16/2026
“Does solar still pay off in 2026?” We get that question more than any other right now.
The honest answer is that the math changed, and for most LADWP homes it still works.
The direct federal credit for buying a system ended December 31, 2025. If you're reading anything that says otherwise, check the date on it.
What changed is who claims that value. Under a prepaid lease, a finance company owns the system and claims the federal commercial credit, then passes it through as a reduction in what the homeowner pays. For LADWP customers that currently lands close to 30% off. Ownership transfers after five years, once the lease is paid.
The part people miss is what's happening on the other side of the ledger. Southern California utility rates have moved in one direction for a long time. Every kWh your roof makes is one you're not buying at whatever the rate turns into by 2030.
If you set solar aside last year when the credit expired, the structure is different now.
Has anyone actually walked you through what replaced it?
Learn more: https://www.solarsourceinc.com/