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Los Angeles Dept. of Water & Power

Solar on LADWP: the city's own rules

LADWP is the country's largest city-owned power utility and sets its own solar rules. Here's how its net metering, tiers and hookup steps actually work.

Checked . Sources linked in the text.

By the Golden Hour Energy editorial team. How we research and check our guides

LADWP runs its own net metering program, so the solar rules in the City of Los Angeles aren't the NEM 3.0 rules that SCE and SDG&E homes follow. Under LADWP's guidelines, what you export is netted against what you use each billing period, and any excess becomes a credit on your account (LADWP NEM guidelines). That's a very different deal from the few-cent export values on NEM 3.0, and it changes how a Los Angeles system should be built.

A city utility, not a CPUC one

LADWP calls itself the nation's largest municipal power utility. It serves more than 1.6 million electric customers, about four million people in Los Angeles, plus nearly 6,000 customers in the Owens Valley (LADWP). It answers to the city's Board of Water and Power Commissioners, not the California Public Utilities Commission. That's why NEM 3.0, a CPUC decision, doesn't reach it.

A Los Angeles mailing address doesn't mean you're on LADWP. Many neighboring cities and unincorporated parts of LA County are on Edison. If your bill says SCE, our SCE page is the right one.

How LADWP net metering works

LADWP's published Net Energy Metering guidelines set out the rules (LADWP):

  • Netting each billing period. Exports offset what you pull from the grid. If you use more than you export, the difference is billed at your current rate.
  • Credits roll forward. LADWP applies any credit balance to each later bill, except taxes and minimum charges, until it's used up.
  • No payout at the end. The guidelines describe no annual cash-out. If credit remains when you close your account, it's set to zero.
  • Size limit and eligible rates. The program covers solar systems up to 1 MW on schedules including the residential R-1 rates.

The practical lesson: credit you never use is worth nothing, so a system sized to cover your actual use is the target. An oversized system just builds a balance you can't cash.

LADWP net metering vs NEM 3.0, side by side
How LADWP's net metering compares with the NEM 3.0 Net Billing Tariff
TopicLADWP net meteringNEM 3.0 (SCE, SDG&E)
Set byLADWP and the City of Los AngelesThe CPUC
ExportsNetted against use each billing periodCredited at hourly export values
Extra creditRolls forward; zeroed if you close the accountVaries by utility tariff
Battery's main jobBackup, plus time-of-use shifting on R-1BShifting solar into the evening

R-1A: the standard tiered plan

Most LADWP homes are on R-1A, which charges by tier: the more you use in a month, the more each additional kWh costs. Tier sizes depend on your zone. In Zone 1, the first 350 kWh are Tier 1, the next 700 kWh are Tier 2 and anything above 1,050 kWh is Tier 3. Zone 2, the hotter areas, gets bigger blocks of 500, 1,000 and 1,500 kWh. LADWP's high season is June through September (LADWP).

R-1A price per kWh, 2026
  • Tier 1Jan to Mar 202624.8¢
  • Tier 1Oct to Dec 202627.3¢
  • Tier 3Jul to Sep 202641.0¢
¢ per kWh
Total price per kWh before taxes, from LADWP's 2026 rate table. Tier 1 changes each quarter; Tier 3 shown for July to September. R-1A also has a monthly Power Access Charge of $2.30, $7.90 or $22.70 depending on tier.Source: LADWP residential rates

Tiers matter for solar because panels take off your most expensive kWh first. If a hot summer pushes you into Tier 3, every kWh your panels cover is one you don't buy at about 41¢. Prices also move every quarter: LADWP's base rates date to July 1, 2019, and adjustment factors change each January, April, July and October (LADWP). Tier 1 in January to March went from 22.3¢ in 2025 to 24.8¢ in 2026 under those adjustments.

R-1B: time-of-use with an afternoon peak

LADWP's time-of-use plan has a peak that sits earlier in the day than SCE's or SDG&E's. High peak is 1 to 5 p.m. on weekdays, about 20 hours a week. Low peak is 10 a.m. to 1 p.m. and 5 to 8 p.m. on weekdays. Everything else, including all weekend, is base (LADWP). In July to September 2026, R-1B high peak is about 35.1¢ per kWh and base is about 26.5¢, with a $12 monthly service charge (LADWP).

LADWP R-1B across a day
  • Weekdays
    Base: 0:00 to 10:00; Low peak: 10:00 to 13:00; High peak: 13:00 to 17:00; Low peak: 17:00 to 20:00; Base: 20:00 to 24:00
  • Weekends
    Base: 0:00 to 24:00
High peakLow peakBase
Peak hours from LADWP's rate guide. The high peak overlaps the hours when rooftop panels produce the most.Source: LADWP rate guide

That overlap is unusual. On SCE and SDG&E, the expensive hours start as the sun goes down. On R-1B, the most expensive hours are the ones your panels cover best. Whether R-1B beats R-1A for your home depends on your usage, so ask the installer to run both.

Incentives on LADWP

LADWP's old Solar Incentive Program closed to new applications on December 31, 2018 (LADWP). Today LADWP runs Solar Rooftops, a program meant to widen solar access for qualified residential customers (LADWP solar programs), and for batteries it points customers to the state's SGIP for income-qualified households (LADWP). Where SGIP stands now is in our battery guide.

Getting connected in Los Angeles

Hookup on LADWP runs through two city departments. LADWP's guidelines lay out the steps (LADWP), and its Connection Center coordinates inspection and the meter at (213) 367-6937.

From application to switched on
  1. Step 1. Apply to LADWP
    Your installer applies on LADWP's Solar Automated Meter Spot site (ladwp.com/nem) and gets a work request number. Systems under 10 kW with no service upgrade or battery can be fast-tracked.
  2. Step 2. City building permit
    The installer pulls a permit from the Department of Building and Safety (LADBS). When LADBS finals the permit, it releases the project to LADWP.
  3. Step 3. Inspections
    LADBS inspects the permit work. LADWP does its own solar inspection, plus an electric service inspection for systems 10 kW and up. Larger systems also sign an interconnection agreement.
  4. Step 4. New meter, then on
    LADWP installs a two-way net meter and places the system in service. Until then, LADWP says a system may not be operated and may be locked.
Source: LADWP NEM guidelines

LADWP customers aren't among the utilities whose customers must sign the CPUC's Solar Consumer Protection Guide, but state contractor licensing and cancellation rights still apply. Both are on our page of claims to walk away from.

Common questions

What happens to extra solar credit on LADWP?
LADWP's net metering guidelines say a credit balance carries forward to each later bill, except taxes and minimum charges. If you close your account with credit left over, it's set to zero. The guidelines describe no cash payout.
When are LADWP's peak hours?
On the R-1B time-of-use plan, high peak is 1 to 5 p.m. on weekdays. Low peak is 10 a.m. to 1 p.m. and 5 to 8 p.m. on weekdays. Nights and weekends are base hours. The standard R-1A plan uses tiers instead of hours.
How do I know if I'm on LADWP or SCE?
Look at the logo at the top of your electric bill. LADWP serves the City of Los Angeles, plus a small number of customers in the Owens Valley. Many neighboring cities and unincorporated parts of LA County are on SCE.
Does LADWP still pay a solar rebate?
Not the old one. LADWP closed its Solar Incentive Program to new applications on December 31, 2018. Its Solar Rooftops program is a different arrangement for qualified residential customers, and LADWP points battery buyers to the state's SGIP.

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