LADWP Solar Net Metering: How to Apply and Get Credited Step by Step

By Ethan Brooks

Updated November 2026

LADWP solar net metering lets Los Angeles homeowners with rooftop solar send excess electricity to the grid and receive credit against the power they draw at night or on cloudy days. This guide walks you through eligibility, the application process, the equipment and paperwork you will need, and how to read the credits that appear on your bill once your system is running.

How LADWP Net Metering Works

Under a net metering arrangement, your solar array produces electricity during the day. Whatever your home does not use at that moment flows out through your meter to the grid. When your panels are not producing enough to cover your household, you draw power from LADWP as usual. Your meter tracks both directions, and at the end of each billing period the utility compares what you exported with what you consumed.

The practical result is that you pay for your net usage rather than your gross usage. If you export more than you consume over a billing cycle, the surplus typically carries forward as a credit. The exact rate structure, credit treatment and rate schedules are set by LADWP and the Los Angeles Department of Water and Power’s current tariff documents, so always confirm the latest terms directly with the utility before you sign a contract with an installer.

Key terms to know

• Import: electricity you pull from the grid when your system is not covering demand.
• Export: electricity your system sends to the grid when production exceeds use.
• Net usage: imports minus exports over a billing period.
• Bidirectional meter: a meter that records both imports and exports, usually replacing the standard meter during interconnection.
• Interconnection agreement: the contract with the utility that authorizes your system to operate in parallel with the grid.

Check Your Eligibility Before You Start

Not every home qualifies automatically. Before you invest time in design or paperwork, confirm the basics.

1. Service territory: your property must be served by LADWP. Check your bill’s service address to confirm.
2. Account type: net metering generally applies to residential and certain small commercial accounts in good standing. Accounts with unpaid balances may need to resolve them first.
3. System size limits: utilities usually cap the capacity of a residential system that can interconnect under net metering. Ask your installer to size the system within the published limit for your account.
4. Roof and site condition: the roof should be structurally sound, with reasonable sun exposure, and the electrical service panel should have room for a new breaker or be upgradable.
5. Equipment standards: inverters and other interconnected equipment must be listed to current safety standards, such as UL 1741 for inverters.

For a deeper look at the general requirements most utilities apply, see Solar Net Metering Requirements: What You Need to Qualify (Step-by-Step).

Step-by-Step: Applying for Net Metering

The application process usually runs in parallel with system design and permitting. Timelines vary, so build in slack for utility review and inspection queues.

Step 1: Get a site assessment and system design

A licensed installer will measure roof area, check shading, review your annual electricity use and propose a system size. Ask for production estimates based on your address and roof orientation, not just generic averages.

Step 2: Submit the interconnection application

Your installer typically submits the interconnection request to LADWP along with a single-line diagram of the system, equipment specifications and the proposed system size. The utility reviews the request for grid impact and compliance with its rules.

Step 3: Secure the building permit

Local building and electrical permits are separate from the utility process. Your installer usually handles these, but you should confirm that permits are issued before construction begins.

Step 4: Install the system

Mounting, wiring, inverter installation and the main service connection happen during this phase. Only install the inverter and connect to the grid after the utility has approved the interconnection.

Step 5: Pass inspection and receive permission to operate

After the local inspection passes, LADWP may require its own inspection or review before granting permission to operate. Do not switch the system on before this approval arrives.

Step 6: Meter change and activation

The utility installs or activates a bidirectional meter. Once the new meter is in place and your account reflects the net metering rate arrangement, your system begins exporting and generating credit.

Documents to keep on hand

Reading Your Credits After Activation

Once your system is operating, the first bills can look confusing. Compare the import and export readings on each statement, then check how the net figure was applied. A few habits make this easier.

• Save a copy of every bill during the first year to see seasonal patterns.
• Note whether surplus credit carries forward or is paid out, and when that happens.
• Track your system’s production through its monitoring app and compare it with the export figures on your bill.
• If production looks low for several weeks, check for shading, soiling or inverter faults before calling the utility.

For a worked example of how a statement breaks down, see Solar Net Metering Bill Example PDF: How to Read Yours Step by Step.

Common Mistakes

• Turning on the system too early. Operating before permission to operate can delay or jeopardize your interconnection.
• Oversizing the array. A system sized far beyond your usage may produce surplus you cannot credit efficiently.
• Ignoring rate changes. Utility tariffs can change over time. Re-check your rate schedule every year.
• Skipping production monitoring. Without monitoring, a failed string or inverter can go unnoticed for months.
• Assuming all installers handle utility paperwork the same way. Ask who submits the application, who tracks its status and who handles the meter change.

Tips for a Smoother Process

• Ask your installer for a written timeline that includes utility review and inspection steps.
• Keep your LADWP account current, since outstanding balances can hold up approvals.
• Confirm the net metering arrangement in writing before installation begins.
• Review your household’s usage pattern. Heavy daytime use can improve how much solar you consume directly rather than exporting.
• Compare how net metering differs from other arrangements if your situation is unusual. Net Metering Solar Program vs Self-Consumption: Which Is Better for Homeowners? covers that trade-off in more detail.

FAQ

Do I need a battery to use LADWP solar net metering?

No. A grid-tied system can operate under net metering without a battery. A battery adds backup power during outages and can shift when you use solar energy, but it is a separate decision.

How long does the approval process take?

Timelines depend on the utility’s review queue, permit offices and inspection scheduling. Many projects take several months from application to permission to operate, so plan well ahead of any installation deadline.

Will my credits expire?

Credit treatment depends on the current LADWP tariff. Check your bill and the utility’s published terms for how surplus is carried forward or compensated.

Can I add more panels later?

Possibly, but expansion usually requires a new interconnection review or amended agreement, and the total system may need to remain within the approved size limit.

Does net metering work during a power outage?

A standard grid-tied system shuts down during an outage for safety reasons, so you will not have power unless you also have a battery system designed for backup operation.

Who owns the solar equipment?

That depends on your financing choice. If you purchase the system outright, you own it. If you lease or use a power purchase agreement, the provider may own the equipment and you pay under the contract terms.

Do I need a licensed electrician?

Yes. Electrical work for grid-connected solar should be done by a licensed contractor who can obtain the required permits and meet utility interconnection standards. Consult a licensed professional before making decisions about your electrical service.

What happens if I move?

Net metering generally follows the service address. If you sell your home, the new owner typically needs to transfer or re-establish the interconnection agreement, so raise this with your utility and your buyer’s agent early.

Conclusion

LADWP solar net metering rewards you for the electricity your rooftop system sends back to the grid, but the benefits depend on careful sizing, correct paperwork and patient sequencing with the utility. Confirm eligibility, follow the application steps in order and monitor your production from the first day. Check current LADWP tariff terms before committing, since rules can change.

Related reading

• What Is the Benefit of Net Metering for Home Solar Owners?
• Texas Net Metering Plans: How Texas Solar Net Metering Works (2026)
• Solar System Net Metering: How It Works and What Homeowners Should Know

About Ethan Brooks

Ethan Brooks is part of our editorial team and reviews and edits our home solar guides, checking product details against manufacturer specifications and owner feedback.