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California solar / Pasadena
Pasadena solar runs on PWP rules, not CPUC net billing
Written by the Solar Learning Lab research deskUpdated August 24, 202611 min read
Pasadena is the exception that catches people who copy a Southern California solar estimate from the next city over. Pasadena Water and Power is municipal. The CPUC net billing tariff does not apply here. PWP has its own Net Surplus Compensation program, its own permit fees and its own election process.
The other hard part is small but real: PWP publishes a 10.0825 cent flat Energy Charge on its general rate page and 9.127 and 10.053 cent seasonal figures on its solar compensation page. Both are published. This page keeps both, with both links, and does not pretend to reconcile them.
Start with PWP, not an SCE template
Review PWP compensation options and published fee bands before modeling a bill.
See the PWP differencePasadena leaves the CPUC net billing script behind
Pasadena Water and Power is a municipal utility, not SCE. PWP says directly that recent CPUC Net Energy Metering updates do not apply to its customers. That single sentence changes the page: a Pasadena solar model based on SCE or a CCA is simply the wrong model. PWP's solar FAQ.
PWP instead uses its own Net Surplus Compensation program under municipal code. Eligible customer-generators must elect compensation. Without an affirmative election, the code says no compensation or credit is provided for net surplus electricity. That is an operational step worth confirming before the project closes. Pasadena Municipal Code 13.04.177.
PWP pays a renewable premium, but the choice matters
Under PWP's annual compensation option, surplus generation is credited at the average Energy Charge during the year plus a 2.5 cent per kWh renewable-energy premium. The monthly or bi-monthly option adds that same 2.5 cent premium plus an additional 6.6 cent per kWh incentive. PWP also states a $50 cash-out threshold. PWP's Net Surplus Compensation page.
These are PWP program mechanics, not CPUC avoided-cost exports. A homeowner should ask the installer to show the election form, selected compensation option, assumed rate and a full explanation of when excess power is valued. A generic California NEM slide is not enough.
PWP publishes two energy-charge figures. Keep both on the page.
PWP's general water and electric rates page lists an R-1/R-2 flat Energy Charge of 10.0825 cents per kWh, alongside a $11 monthly customer charge, $6.50 grid access charge, 1.609 cent transmission charge and tiered distribution charges.
PWP's Net Surplus Compensation page, by contrast, states Energy Charge figures of 9.127 cents per kWh in winter and 10.053 cents per kWh in summer. Both figures are presented here as published on their respective PWP pages. We are not averaging, reconciling or selecting one over the other. A current PWP bill and the applicable tariff are the right tie-breaker for a real project.
Pasadena has a different rooftop ownership mix
The state's January 2026 estimate puts five-plus-unit housing at 28,398 units, slightly above 26,167 single-detached homes. That changes the opportunity set. The page is most directly useful for detached homes and smaller buildings where the owner, roof and meter arrangement are clear. State housing estimate.
Solar Rights Act protection still applies to Pasadena CC&Rs. Municipal utility status does not erase association, ownership or building-design questions. Civil Code Section 714.
PWP's published charges and compensation figures
| Energy source | Type | Average price | What that means |
|---|---|---|---|
| PWP general rates page | R-1/R-2 Energy Charge | 10.0825¢ per kWh | Flat Energy Charge figure published on PWP's general rates page. |
| PWP NSC page | Energy Charge, winter and summer | 9.127¢ / 10.053¢ per kWh | Seasonal figures published on PWP's solar compensation page. |
| PWP annual NSC | renewable premium | 2.5¢ per surplus kWh | Added to the annual option's average Energy Charge rate. |
| PWP monthly or bi-monthly NSC | published additional incentive | 6.6¢ per surplus kWh | In addition to Energy Charge and the 2.5 cent renewable premium under that option. |
PWP general rates page and PWP Net Surplus Compensation page. The different Energy Charge figures are presented as each PWP page publishes them.
Pasadena's solar resource is not the hard part
The downtown PVGIS model estimates 1,682.9 kWh per kW annually, peaking at 168.1 in August. The more consequential local work is matching production and surplus to PWP's program election and residential charge structure.
August is the modeled high month at 168.1 kWh per kW.
PVGIS v5.2. PVGIS v5.2 model run by Solar Learning Lab on August 24, 2026, NSRDB radiation database. Fixed south facing mount, 30 degree tilt, 14 percent losses, downtown Pasadena coordinates. Your roof will differ.
Pasadena bids should name PWP forms, rate assumptions and fee band
The directory is not an endorsement. Ask every bidder which PWP compensation option it models, how it handles the published Energy Charge figures, whether it will support the election form, and which of the $225, $270 or $456 fee bands it has included.
Echelon Solar Power
California
4.9(136 Google reviews)
Altadena Energy & Solar
Pasadena, CA
5.0(42 Google reviews)
First American Solar
Montrose, CA
4.8(25 Google reviews)
Ratings snapshot: Google Maps, August 2026, via the DataForSEO SERP feed. Zero companies paid us and none are endorsed by us.
This calculator is the roughest tool on this page
It uses city production and California market assumptions, but Pasadena's municipal program needs a PWP-specific bill model. Use the calculator for system-size and financing pressure only. Do not use it to choose between PWP compensation options.
The high setting is the fixed-tilt downtown Pasadena PVGIS model. The lower bound is 85 percent of that output, included to show sensitivity before site-specific design.
Cash quotes in Pasadena cluster near $2.46 per watt, against a $3.50 national 2024 median (LBNL). Use your quote.
Assumptions you can change
Use the rate on your actual lease or PPA quote. There is no published statewide average we trust enough to hardcode.
Cash purchase
$8,610 after state credit
- Year 1 benefit
- $163/mo
- Payback
- 5 years
- 20 year net position
- $38,917
Cash savings here should be tested against PWP’s actual energy and distribution charges, plus the selected compensation option. A California average cannot do that job.
Solar loan
$115/mo 15 yr payment
- Year 1 net
- $48/mo
- Upfront
- $0
- 20 year net position
- $26,801
A Pasadena loan proposal needs a conservative PWP cash-flow model. Separate the financed price, APR, dealer fee and payment term before deciding.
Lease / PPA
$0 down you buy the power
- Year 1 net
- $45/mo
- Upfront
- $0
- 20 year net position
- $14,870
Section 48E is a business clean electricity investment credit, not a direct substitute for the homeowner 25D credit that ended after 2025. Do not let a provider tax assumption replace a PWP bill analysis.
Pasadena does not use the CPUC net billing tariff. This calculator uses a statewide screen, while a real PWP analysis must use PWP charges and its chosen Net Surplus Compensation option. We are a solar installer and we also partner with other solar companies. See our disclosures.
Pasadena solar questions that standard California pages miss
Does CPUC net billing apply to Pasadena solar customers?
What are Pasadena's published solar permit fees?
What premium does PWP add to annual net surplus compensation?
Why does PWP show different Energy Charge figures?
Do I need to elect PWP net surplus compensation?
Get a Pasadena solar estimate built around the PWP choice
Bring a current PWP bill, twelve months of usage and the proposed system size. Require the model to state the compensation option and published rate source it uses.
What does your monthly electric bill look like?
Pasadena average is $161 per month (EIA, 2024).