State-wide legislation are mandating private and municipal utilities to help California remain on track to meet it’s 2030 sustainable goals – reduce 40% carbon emissions and achieve 50% renewable energy. In May of 2017, Los Angeles began accepting applications for the LADWP Feed in Tariff Program. The (FiT) is a way for utilities to incentivize a solar project to deliver renwable energy to their grid.
LADWP Feed in Tariff Goals
In 2010 Los Angeles Department of Water (LADWP) became 20% renewable with a target to become 65% renewable by 2036. Since then, LADWP established incentive programs funded by the state that encouraged residential and commercial property owners to go solar.
The FiT provides additional funding to encourage solar Projects to help balance the city’s energy portfolio and demand reliability.
How LADWP Pays For Energy
Projects that sign up will receive monthly payments from LADWP based on kilowatt/hour solar energy tje Project delivered to them. The monetized amount is measured through LADWP’s metering equipment that’s installed at the Project site. LADWP pays the Project $0.145 kilowatt/hour.
The agreement between the Project and LADWP is based on a long-term Standard Offer Power Purchase Agreement. Applicants can either choose a 20-year term or select a 10-year term with an option to extend an additoionl 10 years. The Project will have 12 months after the effective date on the agreement to commission the system.
Applying for the LADWP Feed In Tariff
To enroll in the FiT program, applicants must meet eligibility requirements. Solar projects that apply must have a capacity (DC system size) ranging from 30 Kilowatts to 3 Megawatts. Projects also must be located within legal boundaries identified by the county assessor. Projects that don’t meet city building code requirements are ineligible to apply. PV modules installed by the Project must also be certified by a nationally recognized test laboratory such as NREL (National Renewable Energy Laboratory).
Types of Feed in be categorized in one of two program types.
Projects that apply will be categorized by either the SetFiT or BlockFiT component. With SetFit, applicants are selected by LADWP on a first-come, first-served basis to meet the 35MW incentive. BlockFiT is structured for larger more experienced developers that bid for contracts with the city. Both components are associated with fees.