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 and 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 and 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, your net metering credit is determined by LADWP.
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, those funds will be transferred to LADWP.
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.
Fortunately, the federal government offers a substantial solar panel tax credit. The Inflation Reduction Act (IRA) of 2022 reinstitutes the federal solar tax credit, set at 30% of the solar installation costs through the end of 2032. The IRA also stipulates that home battery storage systems installed after 2023 will be eligible for the tax credit, whether or not it is installed with solar panels.
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.
Go solar with DroneQuote
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.