Updated October 30, 2026
If your latest LADWP bill made you flinch, you’re not alone. Bills across the San Fernando Valley and the rest of the City of Los Angeles are drawing headlines and a petition with more than 24,000 signatures. Here is what the official rate schedule actually shows, why it matters for solar, and what to check before you request a quote.
How much have LADWP residential rates gone up?
As of October 2026, LADWP’s Tier 1 residential rate is about 27.3 cents per kWh, up from about 22.3 cents in January–March 2025, an increase of roughly 22%. The LADWP residential rates page lists the October–December 2026 total consumption charge (adjustment factors included) at 27.292¢ for Tier 1 and 33.151¢ for Tier 2.
The summer peak is higher still. For July–September 2026, Tier 3 was 40.968¢ per kWh. The Los Angeles Times reported on October 17, 2026 that Tier 1 climbed from 22 to 27 cents between January 2025 and October 2026. LADWP says very high bills this summer came mainly from heavy air-conditioning use during record heat, while the city’s independent ratepayer advocate says rates are rising faster than inflation as the utility spends on infrastructure.
Why does the tier structure make summer bills jump?
LADWP charges more per kWh as your monthly usage climbs through three tiers, and the top tier is most expensive from June through September. A home that crosses into Tier 2 or Tier 3 pays the higher price on every additional kWh, so a hot month can raise a bill far faster than usage alone suggests.
That structure is also why solar is valuable in LADWP territory. Solar production offsets your highest-priced kWh first, so the energy it replaces is worth more than your average rate.
Does LADWP net metering still work the way it used to?
As of October 2026, LADWP still operates its own net energy metering rider, separate from the CPUC’s NEM 3.0 that applies to SCE. Under LADWP’s rider, excess energy is credited using your rate schedule’s energy pricing, and any unused credit rolls forward as a dollar balance on later bills. Fixed charges and the $10 monthly minimum still apply, and credits on a closed account are not paid out.
One caution: advocates have publicly floated reducing payments to solar customers, and we found no announced change as of this writing. Rules can change, so a design that doesn’t depend on a single export assumption is safer. If your address is served by SCE instead, the economics are different; see our guide to NEM 3.0 for SCE customers.
What does solar lock in when rates keep rising?
Solar converts part of your electricity cost from a variable utility price into a fixed, known cost. Every kWh your system produces and uses is a kWh you don’t buy at the current tier price, and that avoided price rises when LADWP raises rates.
Here is illustrative arithmetic, not a guarantee. A system that offsets 8,000 kWh a year avoids about $2,160 at the Tier 1 rate of 27.3¢ and about $2,650 at the Tier 2 rate of 33.2¢. Your real numbers depend on your usage, roof, and tier breakpoints, which is why we model your actual bill.
Is solar still worth it in Los Angeles without the federal tax credit?
It can be, but price it honestly. The 30% residential credit under Section 25D ended for property placed in service after December 31, 2025, per the IRS. A cash purchase installed today gets no federal credit, so judge payback on the full net system price.
A lease or power purchase agreement is the main route that can still capture a 30%-equivalent benefit, because the third-party owner claims the commercial 48E credit and may pass savings through in the contract. Terms vary by provider, so compare the contract carefully. Our guide to California solar incentives and rebates covers what remains, and our Los Angeles solar cost guide covers pricing. This is general information, not tax advice. Consult a licensed tax professional about your specific situation.
What should you do before requesting a solar quote?
Pull your last 12 months of LADWP bills and note which months pushed you into Tier 2 or Tier 3. With those, we can size a system to your real usage, and add storage through our battery and backup options if outage protection matters to you. See our residential solar installation page for how the process works.
Get a quote based on your LADWP bill. Call (818) 378-9204 or request a free, address-specific estimate.