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California · Updated September 2026
LADWP rates in 2026
What LADWP customers are actually paying, where the number comes from, and what it means for your bill. The Los Angeles Department of Water and Power is the largest municipal utility in the United States, serving roughly 1.5 million electric customers across the City of Los Angeles.
30.6¢All-in residential rateRanked #1 by Solar Power World · Inc. 5000 · 20,000+ installations
Estimate what solar does against your LADWP bill
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An estimate from your own numbers, not a quote, and not a savings figure. It assumes 400 W panels, an 80% system derate and no roof constraints. Your real number depends on orientation, roof area and your utility’s export credit. Savings are not guaranteed.
The numbers
Where LADWP stands right now
| Measure | Current | Detail |
|---|---|---|
| Standard R-1A, Tier 1 | 24.8¢ | Total Consumption Charge, Jan–Mar 2026 |
| Standard R-1A, Tier 2 and 3 | 30.6¢ | The rate most households hit once air conditioning runs |
| Time-of-Use R-1B, peak | 27.6¢ | High and low peak; base is 25.3¢ |
| City of LA Electricity Users Tax | +10% | Applied on top of electric charges for most households |
| Year-on-year change | +2.475¢ | Jan–Mar 2026 against the same period in 2025 |
| Average monthly bill at 750 kWh | $217 | LADWP's position in SMUD's June 2026 utility comparison |
| Customers served | ~1.5 million | Largest municipal electric utility in the United States |
| Structure | Municipally owned | Rates set by the LA Board of Water and Power Commissioners, not the CPUC |
Total Consumption Charges as posted by LADWP for January–March 2026, Schedule R-1A and R-1B. These include pass-through adjustment factors but exclude the 10% City of Los Angeles Electricity Users Tax.
Why it moved
What is actually driving this
Tiers punish the summer
Tier 1 is 24.8¢. Tier 2 and Tier 3 are both 30.6¢. Once a household crosses its Tier 1 allowance — which air conditioning does quickly — every additional kilowatt-hour costs almost six cents more.
A 10% city tax on top
Most Los Angeles households pay the City Electricity Users Tax on their electric charges. That is not in the posted consumption charge, so the number on your bill is higher than the published rate.
Rates are climbing
The posted Total Consumption Charge for January–March 2026 is about 2.475 cents per kilowatt-hour above the same period in 2025 — roughly an 11% step on Tier 1.
Solar works against the top tier, not the average
Because LADWP is tiered, production offsets your most expensive kilowatt-hours first. The relevant comparison is the Tier 2 and 3 rate of 30.6¢, not the Tier 1 figure.
The honest cost picture
Two ways to pay for solar, and they are very different
If you buy the system
You own the equipment, you keep any renewable energy credits, and you carry the maintenance responsibility. Installed pricing varies by roof, shading and system size.
If you use a PPA
$0 upfront. We install and own the system; you buy the power it produces at a rate set in your agreement, and you only pay for what it actually generates. The system owner carries maintenance for the life of the agreement.
The residential federal tax credit (25D) ended for property placed in service after December 31, 2025.
You will still see ads promising a 30% credit that “ends December 31.” Read the date on them. If you buy a system today as a homeowner, you cannot claim that credit. What remains applies to the owner of the system — which, under a PPA, is us. SolarAmerica does not provide tax advice; talk to your tax professional about your situation.
Who you would be working with
SolarAmerica
We design your system and manage the project; installation is performed by vetted licensed partners in your area.
LADWP questions
The things people actually ask
What is LADWP's electricity rate per kWh in 2026?
LADWP's posted Total Consumption Charge for Schedule R-1A is about 24.8 cents per kilowatt-hour at Tier 1 and 30.6 cents at Tiers 2 and 3, for January through March 2026. The Time-of-Use schedule R-1B runs 27.6 cents at peak and 25.3 cents at base. Those figures include pass-through adjustment factors but exclude the 10% City of Los Angeles Electricity Users Tax, which most households also pay.
Why did my LADWP bill jump when my usage only rose slightly?
Because LADWP prices in tiers. Tier 1 is roughly 24.8 cents per kilowatt-hour and Tiers 2 and 3 are both about 30.6 cents. Once you exceed your Tier 1 allowance for the billing period, every further kilowatt-hour is charged at the higher rate. A modest increase in usage that crosses the tier boundary produces a disproportionate increase in the bill, which is why summer air conditioning is so expensive in Los Angeles.
Is LADWP cheaper than SCE or SDG&E?
Yes, though the gap is narrowing. In SMUD's June 2026 comparison of average monthly residential bills at 750 kilowatt-hours, LADWP was $217 against $283 for Southern California Edison and $322 for San Diego Gas & Electric. LADWP is a municipally owned utility whose rates are set by the Los Angeles Board of Water and Power Commissioners rather than the California Public Utilities Commission, which is part of why it sits below the investor-owned utilities.
Does solar make sense on LADWP's tiered rates?
Tiered pricing is the reason it can. Solar production offsets your most expensive kilowatt-hours first, so the comparison that matters is the Tier 2 and Tier 3 rate of about 30.6 cents, not the Tier 1 rate. A system sized to keep a household inside Tier 1 avoids the highest-cost bracket entirely. Your own bill divided by your kilowatt-hours is the only exact figure for your home.
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