Average LADWP Bill
One of the many reasons to get solar panels in Los Angeles is a smaller electricity bill. There are other benefits to acquiring a solar panel array for your home, such as increasing the home’s value and reducing greenhouse gas emissions.
However, a reduced electric bill is one of the top reasons because the cost of power is constantly fluctuating. This is due to the price of fuel, the season during which it is consumed, and more. Solar power is more stable and reliable, which is why a solar installation can drastically reduce the price of the average LADWP bill.
What is the Average Price of Electricity in Los Angeles?
In order to calculate the price of electricity, it is necessary to know the amount of kilowatt hours (kWh) the average household uses, and the price per kWh. The average home uses about 897 kWh per month, and in Los Angeles residents pay about 18 cents per kWh, according to the Bureau of Labor Statistics (BLS). This is much higher than the national average of 13.6 cents per kWH, which means that Los Angeles—and California in general—has some of the highest electricity costs in the nation.
This is not surprising, especially since California has increased its power rates by up to 80%. This 80% increase is mainly for the biggest power consumers, but the rates will increase by about 19% for the average home. There is some good news here though, because low-income households and homes that use the least electricity will not face any rate hikes. People in the latter category includes those who have a solar panel array. The reason is that the use of solar power means less energy is consumed from the power grid. This means that solar power saves money in many different ways.
What are the LAWDP Electricity Rates?
The LAWDP offers customers two different rate options, the standard residential rate and the time-of-use residential rate.
Standard Residential Rate
This is based on three factors:
- Location – this refers to whether you are located in Zone 1 or Zone 2. Zone 1 encompasses the cooler areas of the city and Zone 2 the hotter ones
- Season – this consists of the High season (June to September) and the Low Season (October to May)
- Consumption – this is the amount of electricity used in each tier
Tiers are the amount of energy consumed during the billing cycle. There are three of them and the first tier covers basic energy consumption like lighting, heating, and refrigeration. The two tiers beyond that cover any energy usage beyond the standard use. Residents of Zone 2 are allowed a slightly higher energy usage threshold in each tier than residents of the cooler Zone 1.
| Zone 1 | Zone 2 | |
| Tier 1 | First 350 kWH | First 500 kWH |
| Tier 2 | Next 700 kWh | Next 1000 kWh |
| Tier 3 | Above 1050 kWh | Above 1500 kWh |
Time-of-use Residential Rate
This billing option is based on the time of the day and the season in which you use electricity. There are three time periods, High Peak, Low Peak, and Base. You can see how they cover different times of the day and the week in the following table:
| High Peak Period (20 hours per week) | Monday to Friday 1:00 PM – 4:59 PM |
| Low Peak Period (30 hours per week) | Monday to Friday 10:00 AM – 12:59 PM 5:00 PM – 7:59 PM |
| Base Period (118 hours per week) | Monday to Friday 8:00 PM – 9:59 AM All day Saturday and Sunday |
During wintertime, the cost of electricity is lower than the Standard Residential Rate, plus the High Peak and Low Peak prices are the same.
During summertime, the comparison between Time-of-use residential rate and the Standard Residential Rate is as follows:
- High Peak Period: Higher than the Standard Residential Rate
- Low Peak Period: Slightly higher than the Standard Residential Rate
- Base Period: Lower than the Standard Residential Rate
What is Net Metering?
Homeowners with a solar panel array are eligible for net metering. This is the difference between the energy delivered by the power company and the energy generated by the solar panels that is delivered back into the energy grid.
- If the energy supplied by the power company is more than that supplied by the panels, then the customer is billed for the energy supplied based on their rate option.
- If the energy supplied by the power company is less than that supplied by the panels, then the usual charges will be applied. However, the customer will receive a credit—based on their rate option—for the amount of energy returned to the grid.
Save Energy and Save Money with Solar Panels
Considering the high price of residential power in Los Angeles, a solar installation is an excellent way to save money on the bimonthly energy bill. One of the appeals of solar arrays is how quickly they provide a return on investment; the electricity savings usually cover the price of the solar panels within five years.
Increasing electricity costs mean that it is possible for a solar array to pay for itself even sooner. If you are concerned about steadily increasing electric bills, then consider a solar installation. At Pacific Green Homes, we will help you to calculate how much money a solar array can save you on each billing cycle.
Related Articles
- Solar Panel Costs
- LADWP Solar Requirements
- LADWP Solar Incentive Program
- How Many Solar Panels Do You Need?
- Renewable Energy Los Angeles
- How Net Metering Works With Solar Panel Installations in Los Angeles
- Residential Solar Panels
- Commercial Solar Panels Los Angeles
- Solar Panel Repair and Maintenance
