Commercial Energy in Los Angeles, CA

Commercial electricity in Los Angeles averages approximately 22.1¢/kWh based on California state data (EIA 2025 commercial sector averages). Your actual rate depends on your utility rate schedule, demand charges, power factor, and in deregulated markets, your chosen retail supplier. Contact LADWP or a licensed energy broker for current quotes.

The primary commercial electric utility in Los Angeles is LADWP (Los Angeles Department of Water and Power). Los Angeles is in a partial retail choice market — large commercial accounts (typically over 500 kW) may be eligible to choose a retail electricity supplier.

Los Angeles businesses are eligible for federal incentives including the 30% Investment Tax Credit (ITC) for solar and battery storage, the 179D tax deduction (up to $5.36/sqft for energy-efficient commercial buildings), and the 40% bonus depreciation for qualifying equipment in 2026. California state incentives through DSIRE apply. Your utility — LADWP — may also offer direct rebates for qualifying commercial efficiency upgrades. Use our Incentive Finder for a personalized list.

Commercial solar ROI in Los Angeles depends on your utility rate, available roof space, local solar irradiance, and federal + California incentives. CA has High solar potential, meaning commercial solar projects in Los Angeles typically achieve payback periods of 5–8 years after federal ITC and bonus depreciation. Get a free energy audit for a site-specific analysis.

Yes. C-PACE (Commercial Property Assessed Clean Energy) financing is available in California. C-PACE allows Los Angeles commercial property owners to finance energy efficiency, solar, storage, and resiliency improvements with repayment attached to the property via a special assessment — enabling 100% upfront financing with repayment spread over 10–30 years.