LADWP net metering: How does it work?
As energy prices continue to rise, more Los Angeles residents are turning to solar power to reduce their utility costs. One of the benefits of solar with the Los Angeles Department of Water and Power (LADWP) is their net metering program. This program allows homeowners and businesses to receive credits on their energy bills. They are done by sending excess solar energy back to the grid. Understanding how LADWP’s net metering works can help you maximize savings and make informed decisions about your solar investment.
Key Takeaways
| Net Metering Basics: | LADWP's net metering allows solar panel owners to receive credits for the excess energy they generate and send back to the grid, reducing their monthly electricity bills. |
| Cost Structure: | The value of net metering credits matches the amount you pay for electricity per kilowatt-hour, which varies annually. Customers also face minimum fees and adjustment factors. |
| Solar Incentives: | While LADWP no longer offers direct solar rebates, federal tax credits and California’s Self-Generation Incentive Program (SGIP) for battery storage provide substantial financial benefits. |
| Comparison with Other Utilities: | Unlike other California utilities with time-of-use pricing affecting net metering credits, LADWP offers consistent rates throughout the day, simplifying credit calculations. |
| Solar Interconnection: | For systems over 10 kW, LADWP requires a standard process for interconnection, including approvals and installations. Smaller systems may qualify for a faster track process. |
LADWP net metering
The Los Angeles Department of Water and Power (LADWP) started its solar program in 1999. They offer net metering programs for customers who connect their solar panel systems to the energy grid. The net metering process takes the energy produced by the customer’s solar panels. Afterward, it subtracts it from the energy they use from LADWP. Net metering lowers customers’ monthly energy bills by receiving credits for their solar production.
Where does LADWP provide net metering?
LADWP is a municipal utility serving the City of Los Angeles and parts of Bishop, Culver City, South Pasadena, and West Hollywood. They provide net metering to private and commercial customers throughout their service area.
What are LADWP’s net metering prices?
LADWP’s net metering price and rate are equivalent to the amount you pay for electricity per kilowatt-hour. This varies yearly for residential customers and depends on your monthly electricity usage. Prices are set months in advance and change every year.
While net metering credits cover your electricity costs, LADWP customers must also pay minimum fees and some adjustment factors. The standard residential rate has a minimum fee of $10 per month plus the Adjustment Factors.
You can check the latest rates here:
Residential Adjustment Billing Factors
What is the net metering cap for LADWP?
LADWP has no net metering cap for its service area. However, individual LADWP customers cannot apply for net metering with a system greater than 1 megawatt (MW).
Is it worth it to install solar in CA?
Overall, California is a great place to install solar panels because of the abundance of sunshine. As well as the fact that most utilities have net metering programs. LADWP is a utility company whose rates and prices are consistent throughout the day for residential customers. Therefore, LADWP determines your net metering credit.
California has six “investor-owned” utilities and approximately 50 publicly owned utilities, including LADWP.
In the six investor-owned utilities in California, including SDG&E, PG&E, and SCE, new net metering customers are automatically enrolled in the current Net Metering program, which is differently structured from LADWP’s net metering program. Net metering 2.0 requires solar PV system owners to subscribe to time-of-use (TOU) pricing, and your electricity price (and therefore net metering credits) changes based on the time of day.
If you have a TOU plan, your electricity rates will decrease when demand is low and increase when demand is high. Therefore, your net metering credit may be higher or lower than your LADWP net metering credit, depending on when you feed solar back to the grid.
What happens to my LADWP net metering credit?
When your system produces excess energy, your bill is credited with extra electricity, which is returned to the grid at retail rates. These points never expire. Excess billing credits cannot offset taxes or other non-energy-related charges. If you still have any funds in your account when you cancel your service, your funds will be undergo a transfer to LADWP.
Check out our new video to know more
Does LADWP offer other solar incentives?
LADWP previously had a solar rebate offer, but the scheme ran out of funds in late 2018. They currently do not offer discounts or other incentives for new solar customers.
As of September 2024, the Inflation Reduction Act (IRA) continues to provide a substantial federal solar tax credit of 30% for solar installations through the end of 2032. Additionally, home battery storage systems after 2023 remain eligible for the tax credit, regardless of whether they are with solar panels or not. It’s essential to consult with a tax expert or the IRS for the latest information on tax credits and any potential changes.
When it comes to battery storage, California’s Self-Generation Incentive Program (SGIP) covers people in the LADWP area. You can apply for SGIP through Socal Gas and get thousands of dollars worth of rebates on home batteries. If your income qualifies for equity or equity and flex incentives, the incentives are greater and can cover most or all of the cost of adding batteries to your home.
LADWP Solar interconnection
To connect your solar energy system with more than 10kW, you must use the Standard Solar Process to receive your two-way meter.
- Complete interconnection application
- Electric service representative visits
- Photovoltaic system installation
- Los Angeles Department of Building and Safety approval
- Two-way meter installation from LADWP
If your system is part of the Solar Incentive program, you don’t have to wait to process your rebate to start your system. If your system is less than 10kW, you can follow the steps outlined here and may qualify for Fast Track Process, skipping the performance meter test. This means your system doesn’t require panel upgrades, battery backup, or interconnection to other generating systems – you must include photos of your system. Then expect approval from the Los Angeles Department of Building and Safety, after which LADWP crews could install the two-way meter.
Conclusion
LADWP’s net metering program offers a practical way for homeowners and businesses to reduce energy costs while contributing to a more sustainable future. By allowing solar panel owners to send excess energy back to the grid in exchange for credits, net metering makes solar power an even more attractive option in sunny California. Although LADWP no longer provides direct solar rebates, the combination of federal incentives and state battery rebates still makes the transition to solar worthwhile. With stable energy rates and no cap on net metering, LADWP customers can enjoy reliable savings over the long term.
If you’ve been considering converting your home to solar power, visit DroneQuote for solar quotes. Net metering can reduce high electricity bills. The best part is that solar energy is cheaper than electricity from the grid. DroneQuote is an excellent option for homeowners who want to learn more about solar energy and roofing but want to ditch sitting through multiple sales pitches.
Our solar experts will design a system to meet your needs. We will walk you through various installation options, and answer all your questions from the comfort of your home. Contact us today or click below.
FAQ
1. What is net metering and how does it work with LADWP?
Net metering is a billing mechanism that allows LADWP customers who generate their own electricity through solar panels or other renewable energy sources to receive credits for the excess energy they produce and send back to the grid. When a solar system generates more energy than a home consumes, the surplus energy is fed back to the grid, and the customer receives net metering credits on their electric bill. This program reduces the overall cost of electricity for residential customers by allowing them to offset their consumption with the energy they generate.
2. Who qualifies for LADWP net metering?
To qualify for LADWP net metering, you must be a LADWP residential customer who has installed a qualifying solar power system. The system must be interconnected to the grid and meet certain technical standards set by the Los Angeles Department of Water and Power. Additionally, the system should be capable of generating up to 1 megawatt of electricity. LADWP offers a streamlined application process for customers looking to go solar and participate in the net metering program.
3. How do net metering credits work?
Net metering credits are calculated based on the amount of excess energy your solar panel system produces. When your system generates more energy than your home uses, the extra energy is credited to your account. These credits can then be used to offset future electricity usage when your system is not producing enough energy. The credits are typically applied to your next electric bill, reducing the amount you owe to LADWP.
