LADWP Approves First 100MW of 150MW Feed-in Tariff

16 Jan 2013

On January 11th, the Los Angeles Department of Water and Power (LADWP) Board of Commissioners voted to approve the first 100MW of a 150MW solar feed-in tariff program, designed to help Los Angeles achieve its renewable energy goals through 2016. The program could be open for applications as soon as February 1st, and will be released in 20MW increments every six months with reserves for smaller project sizes (30kW to 150kW). The maximum project size is 3MW.  The last 50MW will come before the Board for a vote in March, once the program is up and running.

Previously, LADWP launched a modest pilot program in spring of 2012 for 10 MW of capacity, only 3.7 MW of which will receive contracts at an average weighted price of $0.175/kWh. This average weighted price influenced the pricing for the larger procurement program which now has a set price of $0.17/kWh for 20 years. That pricing will gradually decrease for each 20MW of capacity contracted for under the feed-in tariff, eventually dropping down cent by cent to $0.13/kWh by the end of the program. 20MW increments will open for applications every six months. Ideally, the procurement program will gradually bring solar in Los Angeles in line with the average cost for other energy sources, program administrators hope, by the time the 30% investment tax credit (ITC) falls to 10% in 2016.

Not all feed-in tariff programs in California have found similar success. For instance, the city of Palo Alto released a small $0.14/kWh program in 2012 that failed to receive any applications, presumably because the set price offered was too low to lead to viable solar projects. While $0.17/kWh is above the current avoided cost for LADWP, officials decided to launch the program at higher-than-average prices in order to meet upcoming renewable energy targets. LADWP aims to get 25% of its energy from renewable sources by 2016 and 33% by 2020.

Because most of the capacity in this program will likely be sited on rooftops, site selection plays an important role in keeping costs reasonable and ensuring that the project is financeable. Sol Systems will be tracking the LADWP feed-in tariff closely as additional program materials are released. Should you have a project that you are bidding into the LADWP Program or have questions about financing for other California projects please contact Our team would be happy to discuss your project with you and assess financing opportunities.

About Sol Systems

Sol Systems is a solar finance firm and a leader in financial innovation in the renewable energy industry. Since its inception in 2008, Sol Systems has partnered with 350 solar installers and developers to bring over 3,000 solar projects from conception to completion by offering innovative financing solutions for residential, commercial, and utility-scale projects.

Sol Systems’ financing programs catalyze investments for a broad set of solar projects by simplifying their origination, diligence, and financing processes. Developers seeking financing for solar projects can access over $2.5 billion in capital through the Sol Systems investor network.

In addition to providing financing, Sol Systems also offers project due diligence, deal structuring, and asset management services – all designed to reduce overhead and transaction costs and quicken project development timelines.

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Jessica Robbins

Jessica Robbins