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Los Angeles Department of Water and Power · California

How Los Angeles Department of Water and Power credits home solar

What happens to the solar power your home sends to the grid, the size limits, and the steps to connect, checked against Los Angeles Department of Water and Power's own tariffs and the state rules.

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The rules

What happens to the solar power you send to the grid

LADWP says it delivers water and electricity to 4 million residents and businesses in Los Angeles, and its power system page counts more than 1.6 million electric service customers, including nearly 6,000 in the Owens Valley.

Net Energy Metering (NEM)

How Los Angeles Department of Water and Power credits exports

  • LADWP's rates are approved by City of Los Angeles ordinances, and it credits home solar under its own Service Rider NEM rather than the CPUC Net Billing Tariff, which the CPUC applies in the territories of PG&E, SCE and SDG&E.
  • The rider nets the electricity LADWP supplies against the electricity the home sends back over each billing period, using metering that measures flow in both directions.
  • If LADWP supplied more, the customer pays for the net energy under the regular rate; if the home sent back more, charges not based on kWh still apply and LADWP credits the net energy it received using the energy pricing of the customer's rate schedule.
  • Any credit balance is applied to each later bill, except taxes and minimum charges, and only to the bill for the meter that measured the excess energy.
  • If a balance remains when the customer ends service, the rider sets it to zero with no further compensation.
  • The rider applies to any customer who meets its requirements, and the version posted with LADWP's 2026 rates carries a September 1, 2008 effective date.

The rule behind it

LADWP Electric Rate Ordinance, Service Rider NEM (Net Energy Metering), City of Los Angeles Ordinance No. 180127, as amended; Service Rider NEM, rate effective September 1, 2008

The program

Net Energy Metering (NEM), Service Rider NEM

Recent changes

LADBS reissued its express permit bulletin effective January 1, 2026, revised June 10, 2026, and it lists online permits, for contractors only, for qualifying rooftop solar systems of 10 kW or less on one and two family dwellings.

Before you connect

Limits, and the steps to get connected

Limits and eligibility

  • Service Rider NEM covers a permanent solar or wind system, or a hybrid of the two, with a capacity of not more than one megawatt located on the customer's premises.
  • The rider requires that the system be intended to, and actually, primarily offset part or all of the customer's own electricity requirements.
  • A system larger than 10 kW of nameplate capacity needs a signed Solar Powered Customer Generation Interconnection Agreement with LADWP.
  • LADWP's Type 1 interconnection process covers single meter projects up to and including 30 kW that need no service panel upgrade and no three phase service; other projects follow the Type 2, 3 or 4 process.

How a home gets connected

  1. The contractor or customer submits LADWP's online interconnection application with the required documents and photos, and applies to the Los Angeles Department of Building and Safety (LADBS) for a permit.
  2. LADWP emails a confirmation with a NEM Work Request number, and its Electric Service Representative (ESR) staff review the project and give an OK to build, either at an optional on site pre construction meeting or from photos and documents.
  3. After installation, the system needs the ESR final inspection and the LADBS final permit inspection, plus a small system interconnection agreement review when one applies.
  4. LADWP then schedules its construction work, installation, testing and commissioning, and installs the meter.
  5. The final step is LADWP's NEM Permission to Operate (PTO) notice.

Federal tax credit

The residential solar credit (section 25D) ended for systems completed after 2025. What that means in 2026.

Where we work

Cities we cover in Los Angeles Department of Water and Power's area

Each city page adds who issues permits there, with links to the official sources.

Los Angeles, CALADWP

State rules

California solar rulesThe state law, the main utilities, and the cities we cover

Questions

Common questions about Los Angeles Department of Water and Power and solar

Does NEM 3.0 apply to LADWP customers in Los Angeles?

No. The CPUC Net Billing Tariff covers the territories of PG&E, SCE and SDG&E, while LADWP credits solar under its own Service Rider NEM in the rate ordinance approved by the City of Los Angeles. California's net energy metering statute, Public Utilities Code section 2827, also states that it does not apply to a publicly owned utility that serves more than 750,000 customers and also conveys water to its customers.

What happens to extra solar credits on my LADWP bill?

LADWP applies a credit balance to each later bill, except taxes and minimum charges, until no further adjustment is due. Credits apply only to the bill for the meter that measured the excess energy. If a balance remains when you end service, the rider sets it to zero and no further compensation is owed.

What approvals do I need before turning on solar in Los Angeles?

LADWP's Type 1 process pairs its online interconnection application with an LADBS permit, and it ends with the ESR final inspection, the LADBS final permit inspection, meter installation and LADWP's NEM Permission to Operate notice. LADBS issues express permits online, for contractors only, for rooftop systems of 10 kW or less on one or two family dwellings that meet its equipment criteria.

Is there still a federal tax credit for home solar?

The federal residential clean energy credit, section 25D, ended for home solar expenditures made after December 31, 2025, under the law signed July 4, 2025. The IRS treats the expenditure as made when installation is completed, so a system completed in 2026 does not qualify even if it was paid for earlier.

Does the consultation cost anything?

No. The consultation is free for homeowners, and there is no obligation to buy anything.

Who will contact me?

Our team confirms a few details with you, then one local solar company for your area contacts you to set up the visit. Your request never goes to a list.

Sources (checked September 26, 2026)

Tariffs and programs change, so confirm current terms with Los Angeles Department of Water and Power before you decide.

Answers homeowners look for

Is the federal solar tax credit still available in 2026?No, not for a home solar system completed in 2026.Can an HOA stop you from installing solar panels?California: State law limits HOA bansDo solar panels raise your property taxes?California: Partial or limited exemption

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