Solar in Los Angeles: How Utility Structure Shapes System Design

Why They Matter More Than Your Solar Panels

When most homeowners begin researching solar, they often focus on panel brands, warranties, and system size. Those details matter. But in Los Angeles County, one of the most important factors affecting your solar outcome is how your system is designed in accordance with your utility company.

The billing structure behind your meter determines how excess daytime energy is credited, whether battery storage materially improves performance, how long payback takes, and how a system should be designed in the first place. Starting with equipment instead of billing structure is one of the most common reasons homeowners receive unrealistic savings projections. Because of these utility-specific differences, solar in Los Angeles County is never one-size-fits-all.

If You’re on LADWP

If your home is inside the City of Los Angeles, you are most likely served by the Los Angeles Department of Water and Power (LADWP). As a municipal utility, LADWP does not operate under the California Public Utilities Commission’s NEM 3.0 structure. Exported solar energy is credited closer to retail electricity rates, which generally creates favorable conditions for well-designed solar systems.

In practical terms, many LADWP homeowners can achieve strong long-term results with a properly sized solar-only system. However, we frequently review proposals that oversize systems under the assumption that more production automatically equals more savings.

Under LADWP’s billing framework, producing substantially more energy than your home consumes does not necessarily improve financial return. Careful right-sizing based on actual consumption patterns typically produces the most stable outcome.

In most LADWP scenarios, adding battery storage does not significantly improve financial performance. Batteries are typically recommended for backup reliability or specific resilience goals rather than for increasing return on investment. As always, usage patterns and future plans (such as anticipated increases in consumption) should be factored into system design.

If You’re on Southern California Edison (SCE)

For homeowners outside the City of Los Angeles, Southern California Edison (SCE) is typically the utility provider. SCE operates under California’s NEM 3.0 billing structure (implemented in April 2023), which significantly changed how solar savings are calculated.

Because exported daytime electricity under this structure is credited at lower rates than retail energy, the system design must be intentional, focusing on minimizing exports while maximizing self-consumption.

Because evening electricity rates are often higher than midday export credits, battery storage can meaningfully improve generated savings by shifting daytime production into peak usage periods. We routinely see meaningful differences between systems designed simply to offset annual kilowatt-hour totals and those designed around hourly usage behavior and rate timing.

Under SCE, alignment between production and household consumption patterns matters more than panel count alone.

Municipal Utilities: Pasadena, Burbank & Glendale

Several cities in Los Angeles County operate independent municipal utilities, including Pasadena (PWP), Burbank (BWP), and Glendale (GWP). Each maintains its own billing policies that differ from both LADWP and SCE.

Pasadena and Glendale currently operate structures more similar to LADWP, while Burbank’s framework aligns more closely with SCE as of January 1, 2026. Because municipal utilities can adjust policies independently, careful review of current rate structures is essential before finalizing system design. Even small policy differences can materially impact projected savings.

Rebuilds, New Construction & Title 24

If you are rebuilding or constructing a new home, solar is generally required under California’s current Title 24 building standards. However, Title 24 compliance typically reflects minimum sizing requirements rather than optimized long-term performance.

We frequently evaluate new construction plans where the code-required system would offset only a portion of projected household usage. Utility structure still determines how that system performs once activated. For rebuilds and new construction projects, the focus extends beyond compliance to proper integration, long-term reliability, and aligning system capacity with your actual energy goals.

Before You Request a Solar Quote

One of the most common patterns we see is homeowners requesting quotes before understanding how their utility shapes system performance. That often leads to inflated savings assumptions, generic system sizing, and frustration after installation.

A responsible solar evaluation begins with utility analysis. Before discussing panel brands, inverter architecture, financing options, or battery capacity, it is essential to understand your rate plan, historical consumption patterns, and how your specific utility accounts for exported energy.

Key Takeaway

Solar can absolutely make sense across Los Angeles County. But it performs predictably only when it is designed around your utility’s billing framework. Two homes with identical equipment can follow very different financial trajectories depending on who provides their electricity.

If you are considering solar and would like a structured, utility-based evaluation of how it would perform on your home, we are happy to review your recent usage data and provide a clear assessment based on how your home consumes energy and how your utility credits it.

In Los Angeles County, intelligent solar design begins with understanding the rules that govern the grid you are connected to. Reach out anytime for a free estimate.

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