Commercial Solar Los Angeles: 2026 Strategy & Installers
Revel Energy specializes in commercial, industrial, and agricultural solar for the Greater Los Angeles area. We help business owners turn tax liabilities into income-generating assets.
Running a business in Los Angeles means navigating some of the highest operating costs in the country. Between LADWP rate hikes and Southern California Edison (SCE) adjustments, electricity is no longer just a utility bill – it’s a volatile line item that eats into your NOI.
For 2026, the strategy has changed. It isn’t just about “saving money” anymore; it’s about locking in certainty before federal incentives shift.
If you are looking to reduce opex and control your tax position, 2026 is a pivotal year. Under current federal guidelines, the full suite of solar incentives is time-sensitive.
- Federal Investment Tax Credit (ITC): The base 30% credit remains available, with potential adders reaching up to 50% for projects using domestic content or located in “energy communities”. Estimate your potential benefit with our Solar ITC Calculator 2026.
- July 4, 2026 Deadline: To guarantee eligibility under the current rules, projects generally need to “begin construction” by July 4, 2026.
- Bonus Depreciation: Accelerated depreciation allows businesses to offset a significant portion of the system’s cost against federal tax liability in year one. For high-revenue operators, this turns a capital improvement into immediate cash flow relief.
The Bottom Line: Waiting until late 2026 introduces supply chain and regulatory risk. The smartest operators are safe-harboring their projects early in the year to secure 100% of the available value.
Why Los Angeles Real Estate Needs Solar Now
1. LADWP & SCE Rates Are Climbing
Historical data shows a consistent upward trend in rates. In a recent analysis of our own customer data, we found that one client saw their SCE electricity costs increase by 37% over just five years. That represents an average annual increase of roughly 7%, far outpacing standard inflation. Solar provides a hedge against this volatility, effectively locking in a portion of your electricity rate at a fraction of today’s grid price.
2. Turning Tax Bills into Assets
Instead of paying a massive tax bill to the IRS in April, many LA businesses are reallocating those funds into a solar asset.
- Example Strategy: A project financed for $851,000 could generate ~$560,000 in year-one tax value.
- Cash Flow Positive: Often, the annual loan payments are largely offset by the electricity savings, meaning you acquire a multi-million dollar asset effectively funded by the tax savings and the utility company.
3. Grid Constraints & Resilience
The LA basin is power-hungry. As the grid tightens, businesses with on-site generation (and potentially battery storage) gain operational independence. Whether it’s peak shaving to lower demand charges or simple bill offsetting, you regain control over your energy supply.
LA Local Case Study: Bordan Shoe Company
A premier footwear distributor in Los Angeles turned their massive warehouse roof into a $4.5 million asset.
The Challenge: Bordan Shoe Company operates a 400,000 sq. ft. full-service warehouse in the heart of Los Angeles. With energy-intensive equipment running daily and LADWP rates climbing, their electricity bill was becoming a runaway operating cost. They needed a way to stabilize expenses without disrupting their high-volume logistics.
The Revel Solution: We designed a custom 302 kW rooftop system tailored to their specific load profile. The project utilized 765 high-efficiency modules and SolarEdge inverters to maximize production despite the complex roof layout. The system was also structured to capture the full value of the Federal ITC and bonus depreciation.
The Results:
Lifetime Value: Projected to deliver over $4.5 million in electricity savings.
Grid Independence: The system offsets 90% of the facility’s energy usage.
Asset Value: Expected to increase the building’s property value by an estimated $1.1 million.
The Power of Power Purchase Agreements (PPAs) for Los Angeles Businesses
An increasing number of businesses are turning to Power Purchase Agreements (PPAs) as a cost-effective way to install commercial solar. PPAs offer a way to utilize existing budgeted operating expenses to gradually finance a more sustainable electricity source.
By entering into a PPA, businesses can secure solar energy at a fixed, predictable rate, often lower than the utility’s rate. This approach mitigates the impact of rising electricity rates and also aligns with the growing prevalence of environmental sustainability goals.
A solar PPA protects businesses from a certain future of rising electricity costs by locking in a predetermined escalation rate, using solar generation to offset electricity bills to provide financial and operational flexibility.
Learn if your business can access Commercial Solar through a Power Purchase Agreement (PPA).
Installing Commercial Solar Panels in Los Angeles
Commercial solar companies in Los Angeles, like Revel Energy, have embraced solar power and renewable energy storage as one of, if not the most, advantageous forms of renewable energy in sunny California and other nearby states. It is actually predicted that the commercial solar market in the US will have more than tripled from 2018 to the end of 2022, with significantly increased installs than predicted before.
Through incentives like the solar investment tax credit, Los Angeles businesses are writing off 30% of their solar investment, which can include financing a new commercial rooftop.
At Revel Energy, we will work closely with you to customize ideal solutions for commercial solar in Los Angeles. We not only undertake the design and installation of your system, but we carefully consider your usage and projected needs to offer the best components and implementation to make great business sense for your specific conditions. We offer an array of financing options and in most cases, there are no up-front costs – you will see positive cash-flow instantly.
Contact the expert team at Revel Energy today to learn how commercial solar can help your Los Angeles business.
Cities we serve in Los Angeles for Commercial Solar Installation:
Commercial Solar Baldwin Park | Commercial Solar Carson | Commercial Solar Compton | Commercial Solar Culver City | Commercial Solar Rancho Dominguez | Commercial Solar La Mesa | Commercial Solar Long Beach | Commercial Solar Paramount | Commercial Solar Pico Rivera | Commercial Solar Pomona | Commercial Solar City of Industry | Commercial Solar Whittier | Commercial Solar Vernon | Commercial Solar Santa Fe Springs | Commercial Solar Hawaiian Gardens | Commercial Solar San Bernardino
What to Do Next
You have 10 other fires to put out today. We make this one easy.
Don’t guess at the numbers. Revel Energy provides a complimentary, investment-grade energy and tax analysis. We will model your specific 15-minute interval data against the 2026 rate schedules and tax incentives to show you exactly what a project looks like for your P&L.
Not tax advice. Confirm eligibility with your tax advisor.
Commercial grade rooftop solar is ideal for: manufacturing, warehousing, logistics, industrial, retail, hospitality buildings and more with over 10,000 sq. ft. rooftops.
CARPORT SOLAR
Free standing carport solar generates added solar power for properties with limited rooftop space. Added benefits include shading and protection for employees vehicles.
Crucial for reducing peak demand charges. Automated to supply electricity when your panels won’t. Energy storage is ideal for businesses that incur significant peak charges.
As the popularity of electric vehicles increase, so does the demand for on-site charging. This sustainable amenity has become a parking lot fixture for competitive employers.
OUR SERVICES
TURNKEY COMMERCIAL GRADE SOLAR, ENERGY STORAGE, LED LIGHTING AND MORE.
PROFESSIONAL GUIDANCE
CUSTOM TAILORED PLANNING
CONSTRUCTION & INSTALLATION
CSLB #1106092
Client Testimonial: Kelemen Company
Corporate Business Park in Irvine, CA has created significant electricity cost savings through commercial solar installed across the 5-building business park.
Client Testimonial: Tice Gardner & Fujimoto LLP
See how this CPA firm saved on electricity and gained valuable tax credits through commercial solar that they used to keep cash in the businesses.
