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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. This Solar Incentive Program was created to help meet the aim of Senate Bill 1, which is essentially an extension of the California Solar Initiative (CSI) and the Energy Commission’s New Solar Homes Partnership (NSHP).  Basically, the goal of this program is to promote solar for LADWP customers to help California reach its energy goals.  By providing a financial incentive to homeowners who install on-grid photovoltaic systems, LADWP hopes to encourage homeowners to invest in solar energy.   LADWP customers who have photovoltaic systems installed can receive a lump sum payment upfront based on the anticipated performance of their new system. To calculate an estimate of the Expected Performance Based Buydown (EPBB), LADWP’s website has an online calculator. This provides an idea of the energy production, annual kWh, CEC-AC rating, Design Factor, CSI rating, and incentive amount.  With this information, LADWP is able to figure out how much money to pay the customer upfront. There are benefits that go beyond this one-time payment.  According to the LADWP website: “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.” This means that when an LADWP customer’s solar system is producing excess energy, it goes back into the grid.  The meter runs backwards and LADWP is then able to credit their customers with energy towards their electricity bill.  Conversely, LADWP is presently developing another system to promote the use of solar technology through the Solar Feed-in Tariff Program, also known as the CLEAN LA Program.  Though Solar Incentive Program customers are not qualified for the CLEAN LA Program, this particular program is designed primarily for larger-scale commercial use.  Through this Feed-in Tariff system, customers who produce 30kW and higher, can enter a contract to sell 100% of the energy produced at their facility to LADWP at a fixed rate for up to twenty years. Here’s a brief run-down of how the preliminary stages function: 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...

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