Utility Guide

    LADWP Solar Rebates & Net Metering

    LADWP keeps full retail net metering — no NEM 3.0. See your tiered rate savings ($0.22–$0.35/kWh), rebate programs, and why LA homeowners save $1,800+/yr with solar.

    How LADWP Billing Works

    Understanding your current rates helps you see why solar makes sense

    LADWP Residential Rate Tiers

    Tier 1
    $0.22/kWh
    First 350 kWh (baseline)
    Tier 2
    $0.28/kWh
    351-1,050 kWh
    Tier 3
    $0.35/kWh
    Over 1,050 kWh
    Solar targets this expensive tier first

    *Rates shown are approximate and may vary. LADWP rates change periodically. Check your bill for exact rates.

    Key Insight: Solar Eliminates Your Highest Tier First

    When you generate solar power, it offsets your most expensive electricity usage first. If you're regularly hitting Tier 3 rates, solar can save you $0.35 for every kWh your panels produce.

    What Changes When You Add Solar

    How your LADWP billing transforms with solar panels

    Net Metering Credits

    When your solar panels produce more than you use, LADWP credits your account. These credits roll over monthly and can offset future bills.

    Reduced Peak Usage

    Solar generates most during midday when rates are higher. This naturally offsets your most expensive electricity usage.

    Time-of-Use Optimization

    LADWP's rate structure means solar savings are maximized during peak afternoon hours when your panels produce the most.

    Annual True-Up

    LADWP settles your net metering balance annually. Any remaining credits may be compensated at a lower rate.

    Do You Need a Battery?

    Batteries add value for some LADWP customers, but not all. Here's how to decide:

    High

    Backup Power During Outages

    LA experiences occasional outages during heat waves and PSPS events. A battery keeps your essential systems running.

    Medium

    Maximize Self-Consumption

    Store excess daytime solar production to use in the evening when LADWP rates are higher.

    Medium

    SGIP Incentives Available

    California's Self-Generation Incentive Program offers rebates for battery storage, reducing your upfront cost.

    Low

    Future Rate Protection

    As net metering policies evolve, batteries help you maximize the value of your solar production.

    Common Mistakes to Avoid

    Learn from other LADWP customers' experiences

    Mistake: Oversizing the system

    Fix:

    Size your system based on actual usage, not maximum roof capacity. LADWP net metering has diminishing returns for oversized systems.

    Mistake: Ignoring shading issues

    Fix:

    LA has many trees. Get a professional shade analysis to ensure panels aren't placed where they'll be shaded during peak hours.

    Mistake: Not understanding TOU rates

    Fix:

    LADWP time-of-use rates affect your savings. Make sure your installer accounts for when you actually use electricity.

    Mistake: Skipping permit verification

    Fix:

    Ensure your installer pulls proper LA permits. Unpermitted systems can cause issues when selling your home.

    LADWP Solar FAQ

    Common questions from LADWP customers

    Does NEM 3.0 apply to LADWP?

    No. NEM 3.0 (Net Billing Tariff) does NOT apply to LADWP customers. NEM 3.0 only affects customers of investor-owned utilities like PG&E, SCE, and SDG&E. LADWP is a municipal utility that operates its own net metering program with generally more favorable rates. If you get your electricity bill from LADWP, you are not affected by NEM 3.0.

    How does LADWP net metering work?

    LADWP net metering allows you to send excess solar electricity back to the grid and receive credits on your bill. The credits are calculated at your current rate tier and roll over monthly. At your annual true-up, any remaining credits may be compensated at a wholesale rate. This is separate from and generally more favorable than NEM 3.0.

    Is LADWP solar net metering better than NEM 3.0?

    Generally yes. LADWP's net metering program credits solar exports at rates closer to retail, while NEM 3.0 customers on PG&E, SCE, or SDG&E see export credits reduced by about 75%. LADWP customers benefit from the municipal utility's own solar incentive programs and a tiered rate structure ($0.22-$0.35/kWh) that makes solar savings significant.

    What are LADWP's solar incentives?

    LADWP offers its own Solar Incentive Program with rebates for residential solar installations. The program is separate from state incentives like SGIP (for batteries). Contact LADWP directly or ask your installer about current rebate amounts, as they change periodically.

    Can I go off-grid with LADWP?

    While technically possible with enough solar and battery storage, most LA homeowners stay grid-connected for reliability. Grid connection provides backup power and allows you to benefit from net metering credits when your panels overproduce.

    How long does LADWP interconnection take?

    LADWP interconnection typically takes 2-4 weeks after your system is installed and inspected. The process has improved in recent years, but timelines can vary based on application volume. Your installer handles the paperwork.

    Does LADWP require special equipment?

    LADWP has an approved equipment list for net metering. Most major solar panel and inverter brands are approved. Your installer should verify equipment compatibility before installation.

    Ready to See Your LADWP Savings?

    Get a personalized quote based on your LADWP usage. See exactly how much you'll save.