If you’re a homeowner in Los Angeles with solar—or thinking about getting it—LADWP’s Net Energy Metering (NEM) program can help you save on your energy bills. By allowing customers to earn credits for extra solar energy sent back to the grid, LADWP provides a smart way to make the most of solar power. Here’s how LADWP’s net metering works, why it’s beneficial for homeowners, and how it compares to other programs like SCE’s NEM 3.0.
What is Net Metering, and How Does LADWP’s Program Work?
Net metering is a billing arrangement where homeowners with solar systems can earn credits for the excess energy they produce. When your solar panels generate more electricity than your home needs, that extra energy is sent back to LADWP’s grid, and you receive credits on your account in kilowatt-hours (kWh). These credits can offset your energy bills later, especially helpful during evenings or cloudy days.
With LADWP’s net metering program, you can enjoy savings without needing a costly battery system. This makes it easier and more affordable for Los Angeles residents to save money with solar power.
Key Benefits of LADWP’s Net Metering for Solar Customers
- Earn Credits for Extra Solar Energy
LADWP’s NEM program allows homeowners to “bank” energy credits for any extra power their solar panels generate, which goes directly toward reducing future bills. This system helps you make the most of your solar installation and maximize your savings. - Save Money Without Battery Storage
Unlike other net metering programs that require battery storage to maximize savings, LADWP’s NEM lets you earn credits just by sending excess power to the grid. This reduces the need for additional equipment, making it a cost-effective solution for homeowners looking to lower their energy bills. - Flexible Energy Usage
Some homeowners prefer to strategically manage energy credits to reduce their bills even more, while others use solar to support higher energy needs without exceeding LADWP’s first or second rate tiers. LADWP’s program offers flexibility, allowing you to benefit from solar energy in a way that suits your lifestyle. - Environmental Impact
By sending clean solar energy back to the grid, you’re reducing harmful CO2 emissions. LADWP’s net metering program supports a greener Los Angeles, helping the city achieve its environmental goals while saving homeowners money. - Long-Term Financial Return
Many LADWP customers who install solar see a full return on investment within about seven years. With the combination of LADWP’s NEM credits and government incentives, going solar boosts your home’s value while reducing your electricity bills.

How Does LADWP’s Net Metering Compare to Other Providers?
LADWP’s NEM program offers a more straightforward approach to NEM than providers like Southern California Edison (SCE), which recently introduced NEM 3.0. Under NEM 3.0, credits are lower during non-peak hours, and battery storage is often needed to achieve optimal savings. In contrast, LADWP credits solar customers for every kWh sent to the grid, regardless of the time of day, with no need for additional equipment.
This makes LADWP’s NEM an ideal choice for homeowners who want predictable, immediate savings from solar without the added cost or complexity of batteries.

Why is it Ideal for Solar Customers?
For Los Angeles homeowners, LADWP’s net metering program offers a simple way to cut energy costs and reduce environmental impact. By earning credits for extra energy and enjoying flexible usage options, LADWP customers can reduce their bills and enjoy predictable savings. Whether you’re new to solar or already have a system, LADWP’s net metering makes it easy to maximize your solar benefits.
At Green Home Systems, we specialize in designing and installing solar solutions tailored to your home’s unique needs. Our expertise ensures that you can maximize the benefits of LADWP’s NEM program, leading to substantial savings and a greener lifestyle.
If you’re ready to explore how solar energy can benefit you under LADWP’s NEM program, contact us today for a personalized consultation.