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Incentives/Policies for Renewables & Efficiency

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LADWP - Feed-in Tariff (FiT) Program   

Last DSIRE Review: 02/01/2013
Program Overview:
State: California
Incentive Type: Performance-Based Incentive
Eligible Renewable/Other Technologies: Solar Thermal Electric, Photovoltaics, Landfill Gas, Wind, Biomass, Geothermal Electric, Anaerobic Digestion, Small Hydroelectric, Tidal Energy, Wave Energy, Ocean Thermal, Biodiesel, Fuel Cells using Renewable Fuels
Applicable Sectors: Commercial, Residential, Nonprofit, State Government, Fed. Government
Amount:$0.17/kWh adjusted by a time of delivery multiplier
Base price will step down over time as certain MW goals are met
Maximum Incentive:$0.3825/kWh
Terms:Up to 20 years
Eligible System Size:30 kW - 3 MW DC
Equipment Requirements:Project must be registered as RPS-compliant with the California Energy Commission
Installation Requirements:Commercial operation must be no later than 18 months following the execution of the contract
Ownership of Renewable Energy Credits:LADWP
Program Budget:100 MW of Projects
Start Date:02/01/2013
Web Site: https://www.ladwp.com/fit
Summary:

Note: The Los Angeles Department of Water and Power (LADWP) is accepting applications for the first 20 MW allocation of this program from February 1, 2013 through June 28, 2013. This program is the first component of a 150 megawatt (MW) FiT Program, and is designed to support 100 MW. The full 100 MW of contracts will be offered in five 20 MW allocations occurring every six months. A plan for the additional 50 MW program is still in development.

LADWP is providing a Feed-in Tariff (FiT) program to support the development of renewable energy projects in its territory. All technologies eligible for compliance with the state's renewables portfolio standard are eligible for the FiT, though LADWP expects the majority of projects to be photovoltaic (PV) systems. Project must be registered as RPS-compliant with the California Energy Commission to be participate.

The full 100 MW of contracts awarded through this program will be offered in five 20 MW allocations occurring every six months. Of those 20 MW, 4 MW will be reserved for small projects between 30 kW and 150 kW. If the small projects reach their reserved capacity limit before the total reserved capacity is met for a Tier, the remaining small projects will qualify under the total reserved capacity allocation until that category is exhausted. During the first five business days of each application period, all submitted applications will be prioritized on the FiT Reservation List by lottery. Applications received after the first five business days will prioritized in the order they are received.

The amount LADWP will pay for each kilowatt-hour (kWh) produced will be a product of the Base Price of Energy (BPE) multiplied by the appropriate Time-of-Delivery (TOD) Multiplier. The BPE is scheduled to decline as each 20 MW allocation is subscribed. The TOD multiplier varies by time of day and time of year with the highest multiplier being available between 1:00 PM and 5:00 PM during June through September. The full schedule for BPE prices and TOD multipliers can be seen in the tables below.

Base Price of Energy

Tier Level Total MW Capacity Reserved Small Project MW Capacity Reserved Pricing (per kWh)
1 0-20 0-4 $0.17
2 20-40 4-8 $0.16
3 40-60 8-12 $0.15
4 60-80 12-16 $0.14
5 80-100 16-20 $0.13

 

Time of Delivery Multiplier 

  High Peak
Low Peak Base
Period
M-F (1:00 pm - 5:00 pm)

M-F (10:00 am - 1:00 pm)

M-F (5:00 pm - 8:00 pm)

M-F (8:00 pm - 10:00 am)

All day Saturday and Sunday

High Season (Jun - Sep)

2.25 multiplier 1.10 multiplier 0.50 multiplier
Low Season (Oct - May)
1.30 multiplier 0.90 multiplier 0.50 multiplier

Program participants must pay application fees, interconnection study fees, development security deposits, and interconnection fees. These fees and additional program requirements can be found at the web site above.

 


 
Contact:
  Feed-in Tariff Program
LADWP
Phone: (213) 367-2100
E-Mail: FiT@ladwp.com
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Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

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