Effective 1 July thru 30 September 2009 LADWP has implemented a new tier rate electric structure. The tier rate will affect residents that utilize LADWP by increasing their rates during some of Los Angeles hottest months. Under the new rate structure San Fernando Valley residents will have a new 3 tier rate plan to follow. The 3 tier plan increases rates as followed, usage under 500 kwh will be charged 12.36 cents per kwh, from 500-1,500 kwh the charge will be 13.86 cents per kwh and anything above 1,500 kwh will be charged 17.36 cents per kwh. The same plan will take place again 1 July 2010 thru 30 September 2010. This rate increase has left many homeowners upset but there is a solution available for many homeowners to protect themselves from rate increase and its solar power.
LADWP has a solar energy rebate program that benefits homeowners greatly if they take advantage of it and act NOW. The solar rebate program allows homeowners to receive a monetary rebate after a solar electric system has been installed. The rebate incentive helps homeowners by taking care of up to 44% of the cost of the solar electric system but the incentives do not stop there. On top of the LADWP rebate homeowners are also given a 30% federal tax credit on the system cost. With both incentives in place it allows homeowners to fully take advantage of solar energy and protect themselves from future rate increases such as the LADWP rate increase.
