By Ron Mulick

If you are a SCE (Southern California Edison) residential customer, then you only have a few weeks (or maybe only days), to file an application for the incentive at the present level of $0.65/watt of installed system. It is projected that the rebate will be dropping down to the next level of $0.35 by April 1st. 2012.

The rebate at its current rate of 65 cents per watt will yield cash payment from SCE of about $3,000 towards the installation of a ~5000 watt solar electric system. After the rebate drops, the cash incentive will be around $1,600.

Meanwhile, the Los Angeles Department of Water and Power (LADWP) rebate incentive is currently in step 6 is paying $1.62/watt, and will probably stay at this level for the next three months. The commercial rebate has used all of its annually allocated funding, and will resume at the start of the LADWP fiscal year, July 2012.

You might be wondering why the Investor Owned Utility (SCE) has a rebate that is less than the rebate offered by the Municipal Utility (LADWP). The cost of electricity is higher in the Investor Owned Utilities (SCE, PG&E, SDGE), and lower in the Muni’s (LADWP, Burbank Power, Pasadena Power). So a little bit of incentive in the Investor Owned Utility grid will l yield a faster solar system payback than the same size incentive paid against the Muni’s low cost of power. So, the Municipalities have a higher rebate because their power is much cheaper. But even with that larger rebate, it still takes longer to achieve a system payback in LADWP.

The rebates and incentives are dynamic, continually changing. If you would like more information on current rebates and incentives, call us at (818) 889-0440. You can also post a comment or question below on this blog post.

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