The Los Angeles Department of Water and Power (LADWP) offers a unique opportunity for commercial property owners and developers through its Feed-in Tariff (FiT) Program. This initiative is designed to promote the generation of renewable energy within the city. Let’s dive into what the FiT Program is, who it is for, and how it works.
What is the FiT Program?
The FiT Program allows commercial property owners and developers to sell the output of local, eligible renewable energy projects directly to LADWP. Instead of consuming the energy onsite, participants can generate revenue by feeding this energy into the grid. This program is part of LADWP’s efforts to meet Renewable Portfolio Standard mandates and enhance local renewable capacity through public-private partnerships.
Who Can Participate?
The FiT Program is open to commercial property owners and developers within the LADWP service territory – including Los Angeles, Bishop, Culver City, South Pasadena, and West Hollywood. This includes a wide range of participants, from small property owners with modest solar installations to large developers with significant renewable energy projects. The program is particularly beneficial for those looking to invest in renewable energy but who may not have the immediate need to consume all the energy they produce onsite
How Does It Work?
- Application Process: Interested participants must submit an application to LADWP. Applications are evaluated on a first-come, first-served basis, and projects are selected based on their eligibility and compliance with program guidelines.
- Power Purchase Agreement: Once approved, participants enter into a Standard Offer Power Purchase Agreement (SOPPA) with LADWP. This agreement outlines the terms for selling energy to LADWP, including the price per kilowatt-hour (kWh), which varies based on the system size and location.
- Energy Pricing: The FiT Program offers different pricing tiers depending on the project capacity and location. For example, in-basin solar PV projects between 30 kW and 500 kW are compensated at 14.5¢ per kWh, while larger projects over 3 MW receive 13.5¢ per kWh.
- Incentives: The program also includes incentives for specific types of installations, such as carports and canopies, with additional benefits for projects located in disadvantaged communities.
- Contract Duration: The energy purchase agreements can last up to 20 years, providing long-term stability and revenue for participants.
- Environmental Attributes: Along with energy, LADWP purchases all associated environmental attributes, such as renewable energy credits, which further supports the city’s sustainability goals.
Benefits of the FiT Program
- Revenue Generation: Participants can generate a steady income by selling renewable energy to LADWP.
- Environmental Impact: By contributing to the local renewable energy supply, participants help reduce greenhouse gas emissions and support the city’s clean energy initiatives.
- Community Support: The program includes incentives for projects in disadvantaged communities, promoting equitable access to renewable energy benefits
The FiT Program is a win-win for both the participants and the community, fostering a collaborative effort towards a sustainable energy future. If you’re a commercial property owner or developer interested in renewable energy, the FiT Program offers a compelling opportunity to make a positive impact while earning revenue.
Why work with Coldwell Solar?
As renewable energy experts, Coldwell Solar has the extensive expertise in energy services to help you successfully navigate the LADWP Fit Program. We ensure projects meet all technical and regulatory requirements from initial consultation to project implementation. With decades of experience working with utilities, we help optimize financial returns by navigating pricing tiers and incentives, ensuring the best rates for energy produced. Our workmanship and commitment to quality installations guarantee efficient long-term operation, securing consistent and long-term returns for our customers.
For more information to reserve your participation, contact [email protected].
Source: https://www.ladwp.com/commercial-services/programs-and-rebates-commercial/feed-tariff-fit-program
