Molly Ayala
The cost of electricity in Los Angeles is higher than the national average, with the average residential rate being 27 ¢/kWh, compared to the national average of 21 ¢/kWh. The Los Angeles Department of Water and Power (LADWP) offers its customers two rate options: the Standard Residential Rate and the Time-of-Use Residential Rate. The latter is based on the time of day and season, with electricity prices typically lower early in the day, overnight, and on weekends, and higher during the summer, specifically on weekdays from 4 pm to 9 pm.
| Characteristics | Values |
|---|---|
| Average electricity rate | 27 ¢/kWh |
| Average monthly consumption | 1,002 kWh |
| Average monthly bill | $272 |
| Average monthly bill across the US | $126 |
| Average monthly bill for LADWP customers | $120 |
| Average monthly bill for SCE customers | $189 |
| Highest rates | Summer Weekdays 4-9 p.m. |
| Daily Basic Charge | $0.03 per day |
| Minimum Daily Charge | $0.35 per day |
| Baseline Credit | $-0.09 per kWh |
| Power Access Charge | Tier 2 charge of $7.90 |
| Time-of-Use Residential Rate | Varies with time of day and season |
| Standard Residential Rate | Fixed rate |
| Tiered rates | Increased cost with usage |
| Solar panel savings | Up to $118,700 over 20 years |
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Time-of-use billing
Residential customers of the Los Angeles Department of Water and Power (LADWP) have two rate options: the Standard Residential Rate and the Time-of-Use Residential Rate.
The Time-of-Use (TOU) rates are based on the time of day and season that you use electricity. TOU rates have different per-kWh electricity prices based on the time of day energy is consumed. The rates are typically lower early in the day, overnight, and on the weekends. Bills may be higher during the summer but overall annual energy costs can be lower.
The TOU rate plan is ideal for customers who can shift their energy usage to lower-cost times. For example, the TOU 4-9PM and 5-8PM plans offer low prices while the sun is shining and solar power is contributing to the power grid. This may benefit smaller households in coastal areas with moderately sized homes or condos.
The TOU rate may also be a good option for customers who consistently have Tier 3 usage or are solar residential customers banking solar credits.
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Tiered rates
Los Angeles residents have two types of rate plans to choose from: tiered and time-of-use (TOU). Tiered rates are ideal for those who can keep their monthly or bi-monthly usage low, as the cost per kWh increases with usage. The size of the tiers is determined by the microclimate of the region (zone) and how often you receive your bill. The rate also changes by season, with significantly higher rates for people who use a lot of electricity during the summer. Places that are hotter are in Zone 2, and places that are cooler are in Zone 1.
The Power Access Charge (PAC) is a monthly fixed charge tied to your highest level of energy use over the last year. You can lower your charge each year by adjusting your energy use. The PAC is also determined by tier and zone and is the same as the energy use tiers. For example, if you live in Zone 1 and your highest monthly energy use was 600 kWh, then your PAC would be based on a Tier 2 charge. Every October 1st, your PAC will be based on the highest usage in the past 12 months.
The average electricity rate in Los Angeles is 27 ¢/kWh, which is 9% lower than the average electricity rate in California of 29.91 ¢/kWh. The average residential electricity rate in Los Angeles is 32% higher than the national average rate of 21 ¢/kWh. In 2022, the cost of electricity in Los Angeles for the average homeowner was 22.1 cents per kilowatt-hour (kWh).
Time-of-use rates have different per-kWh electricity prices based on the time of day energy is consumed. Typically, electricity prices are lower early in the day, overnight, and on weekends. Bills may be higher during the summer, but overall annual energy costs can be lower. The TOU 4-9PM and 5-8PM plans offer low prices while the sun is shining and solar power is contributing to the power grid.
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Solar panels
In Los Angeles, residential customers pay much higher rates than people in most of the United States. As of 2022, the average cost of electricity across the US is about 14 cents per kilowatt hour (kWh), whereas the average rate in LA is 22.1 cents per kWh.
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Net Metering Credits
LADWP offers net metering credits that roll over indefinitely. This means that any excess solar energy produced by your panels during the day can be sent to the grid, earning you credits that can further offset your electricity costs.
Federal Tax Credits and Incentives
The Inflation Reduction Act (IRA) of 2022 re-authorized a 30% federal solar tax credit on the cost of installing solar panels until the end of 2032. Additionally, California's Self-Generation Incentive Program (SGIP) offers rebates for installing home batteries, which can be used to store solar energy for later use during peak hours.
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Environmental Benefits
In summary, solar panels offer Los Angeles residents a way to reduce electricity costs, take advantage of tax credits and incentives, gain energy independence, and contribute to a more sustainable future.
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Electric vehicle discounts
The Los Angeles Department of Water and Power (LADWP) offers its customers two types of rate plans: tiered and time-of-use (TOU). The tiered plan increases the cost per kilowatt-hour (kWh) as your usage increases, while the TOU plan offers different per-kWh prices based on the time of day and season.
For residential customers, LADWP offers several options, including electric vehicle discounts. While the specifics of these discounts are not publicly available, LADWP does offer an EV rate discount for those interested in installing an EV charger. Additionally, households may be eligible to claim a tax credit of up to $1,000 on the purchase and installation of an EV charger.
If you're considering purchasing an electric vehicle, there are various incentive programs available in California, such as the Clean Air Vehicle (CAV) decal program. This program, administered by the DMV and the California Air Resources Board (CARB), offers single-occupancy access to HOV lanes and applicable toll discounts for qualifying vehicles that meet specified emissions standards.
The Electrify Your Ride Program is another incentive, offering rebates of $2,000 for new battery-electric vehicles and $1,000 for used ones. Similarly, the Consumer Assistance Program (CAP) provides vehicle owners with $1,000 to retire their operational vehicle at a BAR-contracted dismantler.
Furthermore, the DMV Grant Program funds the Vehicle Voucher program, offering $4,000 vouchers for eligible zero-emission vehicles. Antelope Valley residents also have access to a unique incentive, receiving a $500 incentive for purchasing any battery-electric plug-in vehicle from local dealerships.
In addition to these discounts and incentives, it's worth noting that electricity prices in Los Angeles tend to be lower early in the day, overnight, and on weekends. By strategically charging your electric vehicle during these off-peak periods, you can take advantage of lower electricity rates and further reduce your overall costs.
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Green power
The price of electricity in Los Angeles varies depending on the time of day and the season. Typically, electricity is cheapest during the night and early morning hours, when demand is lower. To take advantage of these lower rates, residents can shift their energy usage to off-peak hours by running appliances like dishwashers and laundry machines at night.
One way to reduce electricity costs and promote sustainability is by enrolling in a green power programme. Green power is electricity generated from renewable energy sources, such as solar, wind, geothermal, and hydroelectric power. These sources produce electricity with little to no carbon emissions, helping to reduce air pollution and combat climate change.
The Los Angeles Department of Water and Power (LADWP) offers a variety of green power options for residents and businesses. One popular programme is the Solar Incentive Programme, which provides rebates and incentives for customers who install solar panels on their properties. The LADWP also offers wind power and biomass energy programmes, allowing customers to support the development of these renewable energy sources.
For those wanting to go green, the Green Power Pricing Programme is an option. This programme allows customers to purchase renewable energy certificates (RECs) to match all or a portion of their electricity usage. By buying RECs, customers can support renewable energy projects and reduce their carbon footprint without installing their own renewable energy systems.
Another initiative is the Feed-in Tariff (FiT) programme, which encourages the development of small-scale renewable energy projects. Participants in this programme generate electricity from renewable sources, such as solar panels or small wind turbines, and sell the electricity back to the grid at a premium rate. This not only reduces their electricity bills but also provides an income stream and contributes to a cleaner environment.
By enrolling in green power programmes, Los Angeles residents and businesses can benefit from
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Frequently asked questions
The average cost of electricity in Los Angeles is 22.1 cents per kilowatt-hour (kWh) for the average homeowner. This is about 58% higher than the national average.
Electricity prices are typically lower early in the day, overnight, and on the weekends. The highest rates are usually during the summer on weekdays from 4 pm to 9 pm.
One way to save money on your electricity bill is to install solar panels. Solar panels can reduce your monthly electricity usage and lower your bill. Another way to save money is to choose a time-of-use billing system, which offers lower rates during certain times of the day and year.
