Plug-in solar savings on LADWP
Last updated
The short answer: on LADWP's R-1A rate of 31.57¢/kWh,[source] the example kit (800 W, $1,000) saves about $250 a year and pays for itself in about 4.0 years, assuming typical placement and that you use most of its power at home.
What the example kit saves on LADWP
| Where the panels go | Saves a year | Pays back in |
|---|---|---|
| Excellent: south-facing, tilted, no shade | $330 | 3.0 years |
| Typical: well-placed | $250 | 4.0 years |
| Shaded or vertical balcony | $182 | 5.5 years |
Power you send back to the grid is valued at $0, so a kit sized to what you use during the day saves the most. Run your own numbers, including how savings add up over the years.
Where this rate comes from
LADWP's R-1A total cost per tier for 2026, which includes the adjustment factors: Tier 2 ranges from $0.30221 to $0.33151 depending on the month (month-weighted average $0.3157). Tier 1 is $0.24362 to $0.27292; Tier 3 reaches $0.40968 in summer. We use Tier 2. Excludes taxes. LADWP's Power Access Charge depends on your highest monthly use, so a kit could lower it too (not counted).[source]
Discounts
CARE and FERA are CPUC programs for investor-owned utilities, so they don't apply here. City and district utilities run their own discount programs, which we haven't verified.
SB 868 and LADWP
SB 868 covers local publicly owned utilities such as LADWP, as well as investor-owned utilities. LADWP may ask you to register a qualifying kit through a simple online form, but can't charge fees related to it.[source] Read SB 868 explained and run through the checks before you buy.
Estimates only. Not electrical, legal or financial advice.
Frequently asked questions
- How much could a plug-in solar kit save on LADWP?
- About $250 a year for an example 800 W kit with typical placement, at LADWP's R-1A rate of 31.57¢/kWh, paying back in about 4.0 years. Your result depends on your usage and where the panels go.
- Does SB 868 apply to LADWP customers?
- Yes. The law covers both investor-owned and local publicly owned electric utilities. LADWP may ask you to register a qualifying kit online, but can't charge fees related to it.