A bright future for the CLEAN LA Solar Program
LADWP will be able to bring 100 MW of local solar energy online at an additional cost of only 15 cents per month to the average residential customer in Los Angeles.
The CLEAN LA Solar Program is off to a strong start as the Los Angeles Department of Water and Power (LADWP) received applications for 107 MW of potential solar projects during the program’s opening week.
Initial applications totaled 7 MW more than the allotment for the entire 100 MW program – highlighting a significant market opportunity for distributed solar projects in Southern California. Notably, LADWP will be able to bring 100 MW of local solar energy online at an additional cost of only 15 cents per month to the average residential customer in Los Angeles.
Procurement for the program is divided into five 20 MW allocations. Within each allocation, 4 MWs are reserved for small projects between 30 kW to 150 kW, while the remaining 16 MWs areopen to larger projects up to 3 MW. The first 20 MW allocation began accepting applications on February 1, and subsequent allocations will open every six months through 2016 – until the full 100 MW program capacity is subscribed.
Contracts feature a 20-year agreement in which LADWP purchases 100% of the energy generated by projects at $0.17/kWh for the City of Los Angeles and $0.14/kWh for Owens Valley. The price differential accounts for the cost incurred when transmitting energy from Owens Valley to Los Angeles. The fixed price paid for energy will decline after each 20 MW allocation is reserved.