Los Angeles approves solar program: commercial owners to profit

Los Angeles customers of the Department of Water and Power (DWP) now have the opportunity to sell back excess solar energy to defray energy costs. This Feed-in-tariff (FiT) program began February 1, 2013.

Under the program, the DWP pays customers 17 cents per kilowatt hour of solar energy returned to the grid (1 kilowatt hour can power a 100-watt light bulb for 10 hours).

Customers must have large rooftops to participate. These types of property can include:

large multi-family properties;
warehouses;
school buildings; and
parking structures.

The DWP will accept contracts for the program through 2016, or until they reach 100 megawatts. This is an update from a similar pilot FiT program begun in May 2012, which started with a threshold of 10 megawatts. The DWP is considering expanding the ceiling by an additional 50 megawatts in March 2013.

The FiT program will create an estimated 4,500 jobs and $500 million in new economic activity. Costs for the program will add about 4 cents to the average monthly residential electric bill.

first tuesday insight

Let your commercial and multi-family property clients know that installing solar improvements can pay off — and not just in LA. Similar programs already exist in Sacramento and San Diego, and the trend is pointing toward more solar incentive programs to come.

Is your client concerned about the cost of installing solar panels? Solar rebates can help finance the initial costs. Visit the CA Energy Commission for information on solar installation rebates available across the state.

Don’t let your commercial clients miss out! To help clients apply for LA’s new program, visit the Solar FiT Program website.