LADWP Solar in 2026: Net Metering, Credits and Payback

At a glance

LADWP is a city-owned utility, so the CPUC's net billing tariff, "NEM 3.0," doesn't apply to its customers. Its own net metering guidelines, last amended in January 2021, still credit solar against your use at your rate within each billing period. In 2024 its residential customers paid 23.8 cents per kWh on average and about $116 a month, in EIA data: well below PG&E, SCE and SDG&E.

How LADWP nets solar

Your panels make powerYour home uses what it needs as it's made.
Extra goes to the gridOver the billing period it's netted against the power you draw, kWh for kWh, at your rate.
Only the leftover is creditedIf you sent out more than you used in the billing period, the excess becomes a credit on later bills.

LADWP's guidelines say the credit goes only to the bill for the meter that measured the excess, applies to later charges except taxes and minimum charges, and is set to zero when you end service. Net metering covers systems up to 1 MW that you own and operate on your premises to offset your own use, on LADWP's standard or time-of-use rate.

The practical upshot: size the system to your use. A kWh that offsets your own use within the billing period is worth your full rate; a leftover kWh is worth a few cents.

What extra power earns: the Standard Energy Credit

LADWP resets its Standard Energy Credit on the first of every month, from its estimated hourly cost of producing power, averaged separately for each rating period:

What LADWP pays for extra solar, 2026

High and low peak periodsBase period

5.53

Jan

4.52

Feb

2.61

Mar

4.2

Apr

1.52

May

2.59

Jun

3.81

Jul

5.07

Aug

5.48

Sep

5.29

Oct

Standard Energy Credit, cents per kWh, January to October 2026: 1.52 to 5.53 in peak periods, 0.85 to 3.07 in base. Source: LADWP Standard Energy Credit page.

That's a small fraction, roughly 5 to 20%, of what you pay for power. Our calculator values leftover kWh at about 3.6 cents, the 2026 average weighted for weekday peak and weekend base hours.

LADWP's rising rates

LADWP's prices are low by California standards but climbing. Its adjustment factors change four times a year:

LADWP's lowest-tier price, month by month

R-1A tier 1, cents per kWh, including adjustment factors

Before the monthly Power Access Charge and taxes. Higher tiers cost more: 33.15 cents for tier 2 and up to 40.97 cents for tier 3 in summer 2026. Source: LADWP residential rates page.

On the standard R-1A rate, the bill also has a monthly Power Access Charge of $2.30, $7.90 or $22.70 depending on your tier. In EIA data, LADWP's average residential price rose from 23.8 cents in 2024 to 26.5 cents in its early 2025 figures.

A high view over a dense neighborhood of steep tile roofs in late afternoon light, solar panels on roof faces pointing in several directions

Savings and payback for LADWP homes

Home	Bill now	First-year savings	System	At $3/W	At $4/W	At $5/W
Smaller home4,500 kWh a year	$107	$950	2.4 kW	7 yrs	10 yrs	11 yrs
Typical home7,000 kWh a year	$162	$1,480	3.7 kW	7 yrs	10 yrs	11 yrs
Larger home10,000 kWh a year	$229	$2,110	5.3 kW	7 yrs	10 yrs	11 yrs

Los Angeles sun, system sized to 85% of yearly use, no battery. Savings from our calculator's LADWP data: solar netted at your rate within each billing period, with the share left over credited at about 3.6 cents. LADWP rates rise 3% a year in this estimate, panels lose 0.5% a year. California DG Stats doesn't cover LADWP, so prices are shown at $3, $4 and $5 a watt.

At $4 a watt, a typical LADWP home pays back in about 10 years in our estimate. Payback is the same for every size here because the estimate uses one average LADWP price; a home that uses more power in higher tiers would do a little better.

Solar Rooftops: rent your roof instead

LADWP's Solar Rooftops program is the other option. LADWP builds, owns and maintains a 1 to 10 kW system on your roof and keeps all its power; you get up to $900 a year as a check or bill credit for 20 years, up to $18,000, and your bill otherwise doesn't change. It's for owner-occupied single-family homes with composite shingle roofs on LADWP's residential rates. You give up the savings on your own bill in exchange for the rent.

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Common questions

Does LADWP have net metering?

Yes. LADWP's net metering guidelines net the solar you send to the grid against the power you draw over each billing period at your rate. Only excess over the billing period becomes a credit, applied to later bills except taxes and minimum charges.

Is LADWP on NEM 3.0?

No. NEM 3.0 is the CPUC's net billing tariff for PG&E, SCE and SDG&E. LADWP is city-owned and sets its own rules, which still use net metering.

How much does LADWP pay for excess solar?

Its Standard Energy Credit, which changes monthly. In 2026 it ranged from 1.52 to 5.53 cents per kWh in peak periods and 0.85 to 3.07 cents in the base period for most customers.

What happens to my LADWP solar credits if I move?

LADWP's guidelines say a credit balance left when you end service is set to zero, with no further payment.

What is LADWP Solar Rooftops?

A program where LADWP installs, owns and maintains a 1 to 10 kW system on your roof and pays you up to $900 a year for 20 years. It's for owner-occupied single-family homes with composite shingle roofs.

LADWP's rates and credits change during the year; figures here are for 2026. Calculator figures are estimates for typical homes, not a quote for yours. Sources: LADWP net metering guidelines · LADWP: Standard Energy Credit · LADWP residential rates · LADWP Solar Rooftops · EIA Form 861. Reviewed October 2026.

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