LA Solar Incentive Program and Feed-in Tariff Program
For those of you who may not know, the Los Angeles Department of Water and Power has developed a Solar Incentive Program (SIP) to support solar energy in Los Angeles. This Solar Incentive Program can help you with the cost of installing a new solar system. The Solar Feed-in Tariff Program, which allows owners of large-scale on-grid solar systems to sell back unused energy, is currently in the works.
“Customers who qualify and complete an installation are provided with a ‘net meter’. When a customer’s solar system produces more energy than they use, the excess energy is calculated as a credit on their bill, and their meter will run backwards.”
application process: To qualify for this program, applicants must go through a six-week application process. Applicants provide the base price for the energy, proof of site control, and complete facility and one-line diagrams. They must also provide a 24 hour by 12 months expected energy profile, provide necessary documentation, and pay an application fee depending on the scale of their project. For small systems, of 30kW-150kW, the application fee is $500. For large-scale projects between for 151kW and 999kW, the application fee is $1,000.
interconnection process: After the prospective seller has completed the application process, they enter an interconnection agreement, which includes an interconnection study fee of $750 for small projects or $1500 for large projects.
moving forward with agreements: Applicants then submit a development deposit of $50 per kW, a 10% interconnection cost deposit, insurance forms, and LA city business compliance forms. This is when the applicant signs the standard offer PPA. LADWP then sets the fixed rate contract that matches the price that was previously offered by the applicant. Both the interconnection agreement and the standard offer PPA are executed at this point.
Moving forward, it is now the seller’s responsibility to acquire the requisite permits and follow through with construction of their project.
monthly payments: Once the project is completed, a reliable revenue meter is provided, with which LADWP can calculate the monthly payments for the seller. The seller receives an invoice of the energy monthly payments from LADWP based on the amount of energy sent through the revenue meter. These payments are based on the sum of Facility Energy collected by the hour, which is determined by multiplying each hour by the base price of the energy and the time-of-delivery. This means that sellers will receive more money for energy produced during peak hours of the day.
It is important to note that a separate metering system is installed to account for the energy used at the seller’s facility. The power needed to run the facility is taken from the grid itself, rather than from the power that is produced on-site because 100% is sold to LADWP.
It is the seller’s responsibility to maintain their own facility according to the contract and provide LADWP with an inspection report every two years.
Whether you’re thinking about installing a solar system for your home to take advantage of the SIP or you are planning a large-scale operation for the Feed-in Tariff Program, we are here to help you.
If you have any questions, feel free to give us a call at (866) 798-4435.