Solar + Battery In LA: LADWP vs SCE Considerations

Thinking about adding solar plus a home battery in Los Angeles? Your first and most important step is figuring out which utility serves your address. In most of the City of Los Angeles you are with LADWP, while many areas just outside the city limits are served by SCE. That simple difference can change how your system is sized, how you get paid for excess power, the interconnection steps, and how quotes should be compared. This guide walks you through the key considerations so you can make a smart, confident decision. Let’s dive in.

LADWP vs SCE basics

If your home is inside City of Los Angeles boundaries, you are typically an LADWP customer. Homes in much of Los Angeles County outside city limits are often on SCE. Installers need to confirm your service address before modeling or quoting, because every tariff assumption and incentive path hinges on it.

SCE is an investor-owned utility regulated by the California Public Utilities Commission. That means SCE customers follow statewide rules for interconnection and export compensation. LADWP is a municipal utility. It sets its own tariffs, programs, and interconnection process. Policy changes at the CPUC directly affect SCE customers, while LADWP customers follow LADWP’s separate rules and timelines.

Export credits and sizing

Export compensation determines how valuable each exported kilowatt-hour is. Some structures credit exports near retail value, while others pay a lower, time-varying avoided-cost rate. The credit type drives whether it makes sense to oversize solar or to pair solar with a battery.

For many SCE customers, the successor net-metering framework uses lower, time-based export credits. That pushes you to size solar closer to your own use and to consider a battery that can shift midday production into late afternoon and evening. LADWP runs on its own compensation policy. You need to verify LADWP’s current export credit structure for new interconnections before finalizing system size.

Bottom line: If export credits are near retail, larger solar can still pencil. If export credits are well below retail, prioritize serving on-site load and add storage for time-shifting.

TOU rates and battery value

Time-of-use rates separate prices by hour. Solar produces most in the late morning and midday, but many residential rates place higher prices in late afternoon and evening. Batteries let you store solar energy at noon and use it when prices are higher.

Your installer should model hourly production and consumption by TOU window, not just annual totals. The stronger the price difference between daytime and evening hours, the more a battery can improve savings. For SCE’s successor export structure, storage can also reduce low-value exports, further improving your economics.

Interconnection and timelines

SCE uses an interconnection process aligned with California’s Rule 21. Applications pass through a defined online workflow with screening reviews and potential study steps if a circuit is constrained. LADWP runs its own interconnection process, portal, and timelines. In both cases, you should expect a meter change to handle bidirectional power flows.

Two things that can affect both cost and schedule are distribution upgrades and queue backlogs. If your project triggers a transformer or protection upgrade, the utility may require additional study time and cost. Larger systems are more likely to face those requirements. Ask your installer to identify who pays any utility application fees, meter change fees, and potential upgrade costs.

Permits, inspections, and safety

Battery systems must meet local building and fire code requirements. That includes standards like NFPA 855, California Fire Code provisions, and testing standards such as UL 9540A for certain systems. The Authority Having Jurisdiction, and often the local fire department, will review the design before final approval.

In the City of Los Angeles, installers work with LADBS for permits and inspections. Make sure your quote accounts for permit fees, plan check, and inspection scheduling. Confirm that inverters and batteries meet relevant certifications, such as IEEE 1547 and UL 1741 for inverters.

Incentives to review

Federal incentives have long supported residential solar and storage. The federal Investment Tax Credit may apply to solar and to storage that meets eligibility rules, such as charging from solar. Always confirm current guidance and consult a tax professional for your situation.

For storage, California’s Self-Generation Incentive Program can provide meaningful upfront support, particularly for certain customer categories. SGIP administration is tied to CPUC oversight for many IOU customers. Program eligibility and funding change over time, so check early and plan the application with your installer if you qualify.

Utilities can also offer pilots or rate options that benefit solar plus storage. Property tax treatment in California has included mechanisms that may limit reassessment due to renewable energy improvements in some cases. Your installer should help you confirm which incentives, if any, are available at your address and under your utility.

Quote comparison checklist

Use this checklist to compare apples to apples and avoid surprises:

• Confirm utility and tariff

  • Does the quote correctly identify LADWP or SCE and the exact rate plan? Are TOU windows and any non-bypassable or fixed charges modeled correctly?

• Review modeling outputs

  • Ask for annual generation, expected self-consumption, exports, and cash flow under the correct tariff. Request hourly production vs TOU periods, not just annual kWh.

• Check export and sizing logic

  • For SCE customers, confirm the successor export structure is used in the financial model. Ask if the system is sized to minimize low-value exports or to assume retail credits.

• Clarify interconnection scope

  • Who files the interconnection? What fees are included? Are meter change costs and potential distribution upgrades included or excluded? What timeline is assumed?

• Permits and AHJ requirements

  • Who obtains LADBS or local permits? Are fire department and battery placement requirements included? What are the expected permit fees and inspection steps?

• Incentives and paperwork

  • Will the installer apply for SGIP if eligible and gather all required documents? Are incentive amounts and rules clearly stated in writing?

• Equipment and certifications

  • Confirm inverters and batteries meet applicable standards. Review warranties and the performance assumptions used in the model.

• Controls and export limiting

  • Does the design include export limiting or smart controls if export credits are low? For SCE customers, is storage programmed to avoid exporting during low-value hours?

• HOA, insurance, and structure

  • Is HOA approval needed? Will the installer provide structural documents, roof details, and insurance documentation?

• Binding assumptions

  • Get the rate plan name, export credit assumptions, TOU windows, incentive amounts, and utility upgrade policy in the contract. Confirm what happens if an upgrade is required.

Simple decision framework

Follow these steps to move from interest to action with confidence:

1. Identify your utility and account details.
2. Gather 12 months of usage data, and note added loads like EVs or heat pumps.
3. Have installers model hourly production under your exact tariff and export rules.
4. Compare quotes using the same tariff, TOU windows, and incentive assumptions.
5. Choose a sizing strategy:
   • If export credits are near retail, consider maximizing solar within roof limits.
   • If credits are below retail, size to load and pair with storage.
6. Verify storage incentives and safety compliance, including UL and fire code.
7. Get written confirmation of interconnection steps, fees, and timelines.

Investor notes for rentals and ADUs

If you own a rental or an ADU-equipped property, your load shape matters. Daytime occupancy can boost on-site solar use and reduce low-value exports. Batteries can also help maintain tenant comfort during outages, subject to local rules and safety requirements. Ask your installer to model each unit’s usage and meter arrangement so you see the true cash flow impact.

Common pitfalls to avoid

• Assuming retail net metering for an SCE quote when successor export credits apply.
• Ignoring potential utility-driven upgrades that add cost and delay.
• Missing SGIP windows or documentation for batteries.
• Underestimating permit, fire code, and inspection requirements for storage.

The South Bay and Westside fit

Many South Bay and coastal Westside homes have strong solar exposure and evening usage patterns, which can favor storage under time-based pricing. With the right modeling, you can balance design, budget, and performance without oversizing or overpaying. The key is to ground your decision in your utility’s rules and your home’s real-world load.

Ready to run the numbers on your address and compare smart, utility-specific options? Reach out for a local perspective grounded in day-to-day market experience and clear, investor-minded guidance. For a quick starting point on your property goals, connect with Unknown Company and Get Your Instant Home Valuation.

FAQs

How do I confirm if my home is in LADWP or SCE territory?

• Check your current electric bill and service address. Municipal boundaries often determine the utility, with most addresses inside Los Angeles city limits on LADWP and many nearby areas on SCE.

What does SCE’s successor export structure mean for savings?

• Exported energy typically earns lower, time-varying credits than retail rates. This often favors sizing solar to your load and pairing with a battery to shift energy into higher-value hours.

Do LADWP customers follow the same rules as SCE?

• No. LADWP sets its own tariffs, compensation, and interconnection policies. You need to verify LADWP’s current export compensation and application steps before sizing and signing.

How long does interconnection usually take in Los Angeles?

• Timelines vary by utility, circuit conditions, and whether upgrades are required. Plan for meter changes and allow extra time if your project triggers distribution studies or upgrades.

Which incentives should I ask my installer about?

• Ask about the federal Investment Tax Credit for solar and eligible storage, the Self-Generation Incentive Program for batteries, and any active utility or local programs that fit your address.