After understanding the basics of LADWP’s Net Energy Metering (NEM) program, it’s time to dig deeper. While the primary benefit is clear—earning credits for the excess solar energy your home generates—there’s more to this program than meets the eye. Here are 5 lesser-known facts about LADWP’s NEM program that can help you maximize your savings and make informed decisions about solar power.

1. You Can Use Credits Strategically to Offset Seasonal Bills

Many homeowners don’t realize that LADWP’s net metering credits can be banked and used during higher-energy-demand months. For example, the excess energy your solar system generates in sunny summer months can offset the increased usage during cooler months when solar production is lower. This flexibility ensures year-round savings, even if your energy needs fluctuate.

2. Net Metering Benefits Grow with Energy Efficiency

Pairing your solar system with energy-efficient appliances or practices can amplify the benefits of LADWP’s NEM program. By reducing your home’s energy consumption, you’ll have more surplus energy to send back to the grid, earning additional credits. Simple changes, like upgrading to LED lighting or installing a smart thermostat, can make a big difference.

3. No Solar Battery? No Problem

Unlike areas without net metering, LADWP’s program eliminates the need for a costly battery system. The grid acts as your virtual battery, allowing you to store excess energy as credits. This setup makes solar installations more affordable upfront and simplifies energy management for homeowners who might otherwise struggle with battery maintenance or costs.

4. NEM Reduces Grid Strain and Energy Loss

Net metering doesn’t just benefit homeowners—it also helps LADWP maintain a more efficient grid. The electricity your solar panels generate is used locally, often powering nearby homes. This reduces the strain on long-distance power lines and minimizes energy loss during transmission, making solar energy a win-win for the entire community.

5. Your ROI May Be Higher Than Expected

Many homeowners calculate their solar return on investment (ROI) based on current utility rates. However, with LADWP’s net metering, your ROI can increase over time as utility rates rise. By locking in savings now and offsetting future rate hikes with solar credits, you’re effectively shielding yourself from unpredictable energy costs.

Earning credits with every extra kilowatt: LA homeowners are starting to save more on their bills

Why LADWP’s Net Energy Metering Program Is Worth a Closer Look

LADWP’s NEM program is more than just a way to save money on your utility bills. It’s a dynamic tool that offers flexibility, affordability, and long-term financial benefits for homeowners ready to embrace solar power. Whether you’re optimizing energy usage, banking credits, or simply avoiding the need for batteries, LADWP’s approach simplifies solar savings for Los Angeles residents.

Ready to Take Advantage of LADWP’s NEM Program?

At Green Home Systems, we’re here to help you make the most of LADWP’s solar policies. Our team specializes in designing custom solar systems that maximize energy production and savings, so you can enjoy the full benefits of net metering.

Contact us today to learn how we can help you switch to solar and start saving!