Adding solar panels and switching rate plans can lower your Los Angeles Department of Water and Power (LADWP) electric bill
Updated: October 22, 2020Installing solar panels can help reduce your LADWP bill, thanks to Florida’s sunshine and the company’s net metering program! Combined with the 30% solar tax credit, KUA customers can see great savings when they switch to solar!
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Solar panel cost calculator
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 net metering credits for exported solar power?
Yes, Los Angeles Department of Water and Power (LADWP) offers net metering credits.
Under the Los Angeles Department of Water and Power (LADWP) net metering program, solar panels will first send energy to your home. Any excess solar energy is sent to the grid and purchased in the form of a bill credit. The credit value is determined by the Tri-Party Net Metering Power Purchase Agreement. KUA customers are billed for all of the electric energy delivered to them by the company.
What incentives, tax credits, and rebates are available to LADWP customers for installing solar?
The biggest financial incentive for solar homeowners is the 30% federal solar tax credit. The tax credit equals 30% of the solar installation costs and directly reduces your federal income tax liability.
Some states and local governments offer additional solar incentives. These incentives include state tax credits, rebates, or performance-based incentives like Solar Renewable Energy Credits (SRECs). The best part is that these local incentives can be used in addition to the federal tax 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 1/1/2026. 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 |
|
Net Billing (NEM 3.0)
(State)
Change to net metering policy, new special solar rate plans, and avoided cost buyback 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.