Adding solar panels and switching rate plans can lower your Los Angeles Department of Water and Power (LADWP) electric bill
Updated: October 22, 2020There are three ways you can reduce your LADWP bill: changing your habits, switching your rate plan, and adding solar panels.
You've probably heard a lot about reducing energy consumption by doing things like switching to LED lightbulbs and adding insulation to your walls, but these fixes are relatively easy compared to the far more impactful step of making changes to your lifestyle.
The second thing you can do is switch your rate plan. LADWP offers time-of-use billing that can help you save money by shifting your usage of energy-intensive appliances to off-peak hours, and there may be other options for you as well.
Finally, you can reduce or even eliminate your electricity bill by installing solar panels on your home.
On this page:
Solar panel cost calculator
How much can I reduce my Los Angeles Department of Water and Power (LADWP) bill by switching to a different rate plan
For some people, the savings from switching rate plans may only be a few dollars per month, but for many it can be $20-$100 per month. That's between $240 and $1,200 that you may now be paying to Los Angeles Department of Water and Power (LADWP) each year for no reason.
Finding out what's available to you is as simple as a phone call or email to Los Angeles Department of Water and Power (LADWP). Even a small savings can be worth it.
Are solar panels worth it for Los Angeles Department of Water and Power (LADWP) customers?
Yes! With available solar property tax exemptions, battery storage incentive through the SGIP program, and available net metering, home solar panels make sense for LADWP customers in California. LADWP’s net billing rate allows you to get full credit on your power bill for the excess solar electricity your panels produce which you can’t use onsite. Your credits accrue at the same rate as retail rates, and roll over onto your next month’s bill.
Does Los Angeles Department of Water and Power (LADWP) offer full 1 for 1 net metering credits for exported solar power
Yes, Los Angeles Department of Water and Power (LADWP) offers 1 for 1 net metering. This means you are paid the same rate for excess solar energy that you export to the utility grid during the middle of the day as what you pay for power purchased from the grid.
In the case of Los Angeles Department of Water and Power (LADWP), Time of Use (TOU) pricing applies. You will earn an average of $0.26 for power exported at peak rate times, and an average of $0.18 for power exported at off-peak times.
What incentives, tax credits and rebates are available to LADWP customers for installing solar?
The major financial incentive currently available until the end of 2023 is the 30% federal solar tax credit. The way this works is that the full cost of the system needs to be paid to the installer, and this tax credit can then be claimed back as cash when you next do your taxes.
Many states, local governments and utilities also offer incentives for homeowners who go solar. This help can take the form of state tax credits, rebates, tax breaks, SRECs or even performance-based incentives. The best part is that all of these incentives apply in addition to the federal credit.
Here is every incentive you may be eligible for as a LADWP customer:
Table 1: Incentives
| Upfront Incentives | Value* |
|---|---|
| Residential Clean Energy Tax Credit (Federal) | -$6,830 |
|
Disadvantaged Communities – Single-Family Solar Homes (DAC-SASH) program
(State)
DAC-SASH is a program that provides very low or no-cost solar to low-income residents of California's most disadvantaged communities. Eligible residents can apply through GRID Alternatives' Energy for All Program |
Varies |
|
LADWP - Net Metering
(State)
Retail rate net metering, calculated every month. Applies to all except Taxes and Minimum Charges |
Varies |
|
Self-Generation Incentive Program
(State)
Small Residential earns $.25/Wh of storage capacity |
Varies |
|
Property Tax Exclusion for Solar Energy Systems
(State)
Total cost of solar system is exempt from property taxes, for all systems installed before 1/1/2025. Properties that change hands after 2024 may not continue to be eligible. |
Varies |
|
City of San Francisco - Low-Income Solar Inverter Replacement Program
(State)
Eligible CARE and FERA customers can receive up to $3,000 to replace older, non-working solar inverters that were installed as part of the GoSolarSF program. |
Varies |
|
NEM 2.0
(State)
Change to net metering policy, mandatory interconnection fees, nonbypassable charges, and time of use rates |
Varies |
| TOTAL | -$6,830 |
*Based on 8.56 kW system, average installation cost $22,768
How much does installing solar panels save the average Los Angeles Department of Water and Power (LADWP) residential customer?
If you input the details for a LADWP customer with a power bill of $260 per month into the best online solar panels calculator, it tells you that you need a 8.56 kW solar system that will produce 14,181 kWh per year and that this system will return the owner a $90,923 profit after repaying the cost of the system.
The solar savings possible for you as a LADWP customer will depend on the amount of electricity you use and the cost of the solar system you buy. Savings also vary based on the direction of your roof or any shading of your roof that affects output.
Here is a monthly and lifetime solar savings estimate for the same relatively typical LADWP customer with a $260 per month electric bill prior to solar and who installs a 8.56 kW solar system.
How much do residential solar panels cost for LADWP customers?
Showing data for:
Prices based on a 7.9kW system, after 30% federal tax credit
Solar prices near you
Net profit (savings less system cost)
$73,172-$89,432
Payback period
5.2-6.4 years
Recommended size for the selected utility bill
7.9kW
Solar panel cost calculator
Detailed information about your estimate
Table 2: Estimate details
|
System Size (for 100% usage offset) 8.56 kW |
|
Annual Power Generation 14,181 kWh |
|
Pay-back time (assuming Cash purchase) 5.4 Years |
|
Internal Rate of Return (IRR) on Investment 16.4% |
|
Gross cost $22,768 |
|
Total Upfront Incentives and Rebates -$5,920 |
|
Net Cost of System after rebates and incentives $16,850 |
|
Total Cost of Utility Power Avoided over 25 years $107,773 |
Please note that the investment return figures do not include the possible increase in property value.
What are the environmental impacts of Los Angeles Department of Water and Power (LADWP) customers installing solar panels?
While most homeowners decide to install solar panels because of financial savings over time, the environmental impacts of this choice are the primary motive for others. Here is a breakdown of the environmental benefits from a Los Angeles Department of Water and Power (LADWP) customer installing a 8.56 kW solar system on their property:
A solar system generating 14,181 kWh per year will save you money AND make the world a nicer place
Saves you
$3,637
on average per year
Reduces CO2 emissions
7.02
tons per year
Equivalent to planting
49 trees
per year
Equivalent to driving
15,529 mi
less per year
CO2 emissions calculation based on the electricity generation and emissions data for your state in 2015 as published by the US Government Energy Information Administration.
What factors affect the price of solar panels for Los Angeles Department of Water and Power (LADWP) customers?
The cost of installing solar panels will vary with brands of solar panels and inverters you choose and also the installation company you choose to install them.
It is common to see really good systems, using quality brands of equipment, being sold for around $2.66 per watt or $16,850 for a standard 8.56 kW solar system after the customer claims the 30% federal solar tax credit.