LADWP Solar Program FiT & NEM for House Meter
Prepared by John Kimmes, Chief Revenue Officer & Co-Owner of Keen Energy
Commercial Solar Program Details
1. FiT Program (Feed-in Tariff)
Model: Sell 100% of the solar energy to LADWP at a fixed rate.
- Payment Rate: $0.145/kWh (for systems 30 kW – 500 kW)
- Contract Term: Up to 20 years
- Who Benefits: Property owner only
- Carport Rebate: YES – $1.50/watt for systems <500 kW in non-disadvantaged areas
- EV Chargers: Required if installing solar over parking (Level 2 minimum: 10% of stalls)
Ideal For: Maximizing property income without tenant involvement
Key Advantage: Predictable cash flow from LADWP, eligible for bonus incentives on carports
Initial Costs & Setup (Same for Both Programs)
- Application Fee: $500 (≤500 kW) / $1,000 (>500 kW)
- Integration Study Fee: $750 (≤500 kW) / $1,500 (>500 kW)
- Interconnection Study Fee: $1,500 (flat)
- Development Security Deposit: $50 per kW (refundable if project reaches operation)
- Engineering Survey: Not required by LADWP, but recommended via a solar contractor
- Total Upfront Cost (Typical ≤500 kW): Around $2,750 before any construction begins
Next Steps:
- Keen Energy will Prepare documents (single-line diagram, energy profile, site layout)
- Submit hard copy & email application to LADWP
- Pay Application Fees
- LADWP performs grid & interconnection studies
- Pay DSD if you choose to proceed with the project
Design
With Conservative Weather Model & Shading Analysis
Cost Breakdown
Conservative Project Metrics
Solar & Project Details
- Wattage: 213,750 W
- AC Wattage: 200,000 W
- Total Project Costs: $884,760
- Carport Rebate: $1.50 per AC Watt
- Rebate Total: $300,000
- Cost Minus Rebate: $584,760
- Estimated 1st Year Production: 327,738 kWh
- Feed-in Tariff (FiT) Rate: $0.145 per kWh
- FiT Rate: No Escalation (Locked in for 20 years)
- PV Degradation Rate: 0.50%
EV Charger Details
- EV Charger Count: 10
- EV Charger kW: 7 kW each
- Total kW: 70 kW
- Hours per Day: 4
- Days per Year: 240
- kWh per Year: 67,200
- Sell Avg kWh Price: $0.30
- Buy Avg kWh Price: $0.16
- Profit per kWh: $0.14
- 1st Year EV Profit: $9,408
- Escalation %: 3% (from increased usage and pricing)
Cashflow
- $300,000 Carport Rebate is issued within 60 days of the first energy payment from LADWP under the FiT contract.
- Tax credit and depreciation apply only to the net project cost after the carport rebate — in this case, $884,760 - $300,000 = $584,760 is the eligible basis.
- Payback period is in Year 3
Cashflow with 10% Loan Interest
5 year payback instead of 3 year
House Meter - Comparing Rooftop & Carport Systems
House Meter - Roof
CASHFLOW - House Meter - Roof
House Meter - Carport
If we built a small carport to offset the house meter.
CASHFLOW - House Meter - Carport
Utility Bill Before & After
Design Examples
Executive Summary: Combined Rooftop & FiT Solar Projects
We are presenting two solar investment options that, together, deliver a powerful return profile. These projects qualify for a 50% tax credit due to domestic content compliance and share a fast payback period of just 2.7 years.
Combined Project Overview
- Total Combined Cost: $1,066,612
- Total System Size: 273.75 kW (60 kW Rooftop + 213.75 kW FiT)
- Average Price per Watt (Blended): $3.90 per watt
- Federal Tax Credit: 50% (Domestic Content Qualified)
- Payback Period: ~2.7 years
- Combined 20-Year Cumulative Cashflow: $1,530,699
Individual Project Details
- Rooftop System (60 kW – House Meter Offset)
- Cost: $181,852
- Cashflow (20-Year): $485,309
- Price per Watt: $3.04
- LADWP FiT Project (213.75 kW)
- Cost: $884,760
- Cashflow (20-Year): $1,045,390
- Price per Watt: $4.14
Key Benefits
- 2.7-year payback for both systems
- Over $1.53 million in total net cashflow over 20 years
- 50% federal tax credit using domestic content
- Offset utility costs + generate fixed income through LADWP FiT program
- Enhances property value and long-term energy independence
This is a strategic opportunity to maximize available tax incentives, reduce operational expenses, and lock in a strong income stream.
Final Notes & Options Summary
Key Considerations
Costs may decrease as we refine the steel structure pricing with your possible vendors, evaluate our vendor network and complete a detailed site survey.
Energy Production
Energy production is likely underestimated: Our model is conservative, factoring in shading and mild weather. If we remove the west-side tree (which we can coordinate with the city), production will significantly improve.
EV Charger Output
EV charger output is conservatively modeled: Based on just 4 hours/day, 240 days/year, and 3% annual growth. Actual use may be much higher, and we can explore DC fast charger options if relevant.
Turnkey Delivery
Turnkey delivery: Keen Energy handles everything start to finish. You only need to be involved in the FiT application.
Ownership Paths
Flexible ownership paths:
- Build and keep: Long-term 20-year cash flow with excellent ROI.
- Build and sell: Developers or investors may buy the project mid-construction or before PTO to secure tax equity benefits.
- Lease option: We have partners who can fund it entirely and lease your parking area — minimal annual return but no upfront cost.
These projects are complex administratively, but once approved, they can generate substantial passive income or short-term profits depending on your goals. We're here to guide you whichever path you choose.
Project Implementation Timeline
Conservative timeline estimate for your solar carport project:
Engineering & Design & Application
2 months for detailed site assessment, structural engineering, and final designs.
Permitting
3-4 months for city permits, LADWP interconnection approvals, and inspections.
Procurement
Concurrent with permitting. Securing materials, panels, and steel structures.
Construction
2 months for installation, wiring, and system testing.
LADWP Administration
2-6 months for final inspections, meter installation, and permission to operate.
Total timeline: 10-14 months. We'll work diligently to accelerate this process wherever possible.
Next Step
Sign Letter of Intent and Keen Energy will get Started
Letter of Intent: Solar + EV Charging Project
Project Address: 17454 Chatsworth St, Granada Hills, CA 91344
Prepared By: Keen Energy Inc.
Client Commitment
This letter confirms your intent to proceed with the development of a solar and EV charging infrastructure project with Keen Energy. Upon your signature, Keen Energy will begin preparation of required documents, utility communication, application submission, and preliminary design work for the LADWP FiT program.
Scope Overview
The proposed project will include:
- Installation of three solar carports
- Deployment of ten Level 2 EV chargers
- Over 150 feet of trenching to connect solar and EV infrastructure to the site's switchgear
- Under-carport security lighting, including replacement of any removed light poles
Project Application Support
Keen Energy will coordinate:
- LADWP FiT application
- Interconnection & integration studies
- Engineering design support
- Required LADWP documents & submissions
Reimbursement Clause
By signing this letter, you agree that if the project does not proceed to construction for any reason, you will reimburse Keen Energy $1,800 to cover the cost of time, effort, and materials related to:
- Initial on-site feasibility & survey
- Energy modeling and financial projections
- Document preparation and application handling
- Meetings with LADWP
This reimbursement applies regardless of feasibility outcome or LADWP review results, and will only be invoiced if you choose not to proceed.
Signature
Client Name: ______________________
Signature: ________________________
Date: ____________________________
Once your ready to sign, I can send you a E-Signature.
Let's Build Something That Lasts
You'll have our full attention. All three company owners will be hands-on with your project—start to finish.
30+ Years Combined Experience
We bring decades of expertise in solar and construction to your project.
Earned Trust
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