The Los Angeles Department of Water and Power (LADWP) Board of Water and Power Commissioners has approved a feed-in tariff for 10MW of solar power.
This pilot FiT scheme will allow solar power to be developed by third-parties and then sold to LADWP for distribution on the city’s power grid from small and medium-scale projects. Projects will be selected based on competitive bids for a set contract price per kWh for up to 20 years. Selection criteria will rank projects based on those costing LADWP the least, those with a smaller capacity size and geographic diversity. Short‐listed applicants would need to sign the Standard Offer Power Purchase Agreement (SOPPA) and Interconnection Agreement and pay a development deposit. Applicants must also pay 10% of the estimated interconnection cost prior to execution of the SOPPA. The program will set aside a prescribed amount of smaller and larger solar generation projects.
Once the initial 10MW of solar has been deployed, LADWP has proposed to initiate a program for installations between 75MW and 150MW.
The start date for projects is yet to be announced.
“We are blessed with sunshine nearly year-round here in Los Angeles so starting this program has been a priority for this board and the department,” said board president Thomas Sayles. “Tapping into local solar power is the right approach for Los Angeles as we increase green energy in our power mix and work to comply with state mandates that set renewable energy levels.”
The new program will complement LADWP’s existing Solar Incentive Program, an incentive-based, net-meter program. Applicants applying for the FiT will not be eligible for the incentive program. Through the net-meter program, customers displace energy that would otherwise be supplied by LADWP and receive a credit on their bill for solar generation that exceeds the amount of energy they consume.
“In addition to residential customers, the FiT program will open up local solar development to rooftop real estate, such as warehouses, multi-family developments and other large rooftop structures beyond those that currently benefit from our Solar Incentive Program,” said Aram Benyamin, senior assistant general manager, LADWP Power System.
“The fact that we've received a tremendous amount of interest from folks wanting to attend the workshops confirms just how vital this program is for Los Angeles,” added Benyamin.
Additional workshops will be available. Please visit the department’s website for further details.