California
Incentives/Policies for Renewables & Efficiency
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Last DSIRE Review: 03/13/2009
| Incentive Type: |
State Rebate Program |
| State: |
California |
| Eligible Renewable/Other Technologies: |
Solar Space Heat,
Solar Thermal Electric,
Solar Thermal Process Heat,
Photovoltaics
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| Applicable Sectors: |
Commercial,
Industrial,
Residential,
Nonprofit,
Schools,
Local Government,
State Government,
Fed. Government,
Multi-Family Residential,
Low-Income Residential,
Agricultural,
Institutional,
(All customers of PG&E, SDG&E, SCE; Bear Valley eligible only for NSHP)
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| Incentive Amount: | Varies by sector and system size (see below) |
| Equipment Requirements: | System components must be on the CEC's list of eligible equipment.
Systems must be grid-connected.
Inverters and modules must each carry a 10-year warranty.
PV modules must be UL 1703-certified
Inverters must be UL 1741-certified, and tested by the Energy Commission |
| Installation Requirements: | Systems must be installed by appropriately licensed California solar contractors
Installer certification by NABCEP is recommended
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| Program Budget: | $3.2 billion over 10 years |
| Ownership of Renewable Energy Credits: | Remains with customer-generator |
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Web Site: |
http://www.cpuc.ca.gov/PUC/energy/solar
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Authority 1:
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SB 1
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| Date Enacted: | 8/21/2006 |
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Authority 2:
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CSI Handbook (2009)
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| Date Effective: | 7/1/2009 |
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Authority 3:
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CPUC decision 06-01-024
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Authority 4:
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CPUC Proceeding R0803008
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Summary:
In January 2006, the California Public Utilities Commission (CPUC) adopted a program -- the California Solar Initiative (CSI) -- to provide more than $3 billion in incentives for solar-energy projects with the objective of providing 3,000 megawatts (MW) of solar capacity by 2016. The CPUC manages the solar program for non-residential projects and projects on existing homes ($2+ billion), while the CEC oversees the New Solar Homes Partnership, targeting the residential new construction market (~$400 million). Together, these two programs comprise the effort to expand the presence of photovoltaics (PV) throughout the state, Go Solar California.
Originally limited to customers of the state’s investor-owned utilities, the CSI was expanded in August 2006, as a result of Senate Bill 1, to encompass municipal utility territories as well. Municipal utilities are required to offer incentives beginning in 2008 (nearly $800 million); many already offer PV rebates.
CSI Incentives for Non-residential Buildings and Existing Homes:
The CSI includes a transition to performance-based and expected performance-based incentives (as opposed to capacity-based buydowns), with the aim of promoting effective system design and installation. CSI incentive levels will automatically be reduced over the duration of the program in 10 steps based on the aggregate capacity of solar installed. (Click here for current incentive levels for each utility.) In this way, incentive reductions are linked to levels of solar demand rather than an arbitrary timetable.
Expected Perfomance-Based Buydowns for systems under 50 kW began in 2007 at $2.50/W AC for residential and commercial systems (adjusted based on expected performance) and $3.25/W AC for government entities and nonprofits (adjusted based on expected performance). The incentive levels decline as the aggregate capacity of PV installations increases. Click here for the current incentive levels for each utility. Incentives will be awarded as a one-time, up-front payment based on expected performance, which is calculated using equipment ratings and installation factors such as geographic location, tilt, orientation and shading. Click here for current incentive levels for each utility
Performance-Based Incentives (PBI) for systems 50 kW and larger began in 2007 at $0.39/kWh for the first five years for taxable entities, and $$0.50/kWh for the first five years for government entities and nonprofits. The incentive levels decline as the aggregate capacity of PV installations increases. PBI will be paid monthly based on the actual amount of energy produced for a period of five years. Residential and small commercial projects under the 50 kW threshold can also choose to opt in to the PBI rather than the upfront Expected Performance-Based Buydown approach. However, all installations of 50 kW or larger must take the PBI. Click here for current incentive levels for each utility
The program is managed by the Pacific Gas and Electric Company (PG&E), Southern California Edison (SCE), and the California Center for Sustainable Energy.
Low-Income Programs
Ten percent of the CSI Program budget ($216 million) has been allocated to two low-income solar incentive programs. As of March 2009, the single family low income program is still being developed; but SCE, PG&E and CCSE are accepting applications for Track 1 of the multi-family affordable solar housing (MASH) program. Rebates are available through Track 1 in the amount of $3.30/W for PV systems offsetting common area loads, and $4.00/W for systems offsetting tenant loads. As required by the CPUC, the utilities are develping virtual net energy metering (VNEM) tariffs which will allow MASH participants to allocate the kWh credits from a single solar system across several electric accounts at the same building complex.
Incentives for Other Solar Electric Generating Technologies
The CSI Handbook released in January 2008 clarified the eligibility of other solar electric generating technologies which either produce electricity or displace electricity. Incentives for other solar electric generating technologies are available for CSI incentives effective October 1, 2008. The CPUC specifically recognizes electric generating solar thermal as including dish stirling, solar trough, and concentrating solar technologies, while technologies that displace electricity include solar forced air heating, and solar cooling or air conditioning. The budget for electric displacing technologies is capped at $100.8 million. While solar water heaters can also displace electricity, the CPUC excludes them from the CSI because they plan to offer incentives for solar water heaters through a separate program based on the pilot program currently in operation within the service territory of San Diego Gas and Electric. Future CSI rulemaking activities will address energy-efficiency requirements, additional affordable housing incentives, and other program elements.
Click here for a fact sheet on the California Solar Initiative.
CPUC Program Administrators:
Pacific Gas & Electric (PG&E)
Web Site: www.pge.com/solar
E-mail Address: solar@pge.com
Contact Person: Program Manager, California Solar Initiative Program
Telephone: 877-743-4112
Fax: 415-973-2510
Mailing Address:
PG&E Integrated Processing Center
P.O. Box 7265
San Francisco, CA 94120-7265
California Center for Sustainable Energy (CCSE)
Web Site: www.energycenter.org
E-mail Address: csi@energycenter.org
Contact Person: John Supp, Program Manager
Telephone: 858-244-1177/(866)-sdenergy
Fax: 858-244-1178
Mailing Address:
California Center for Sustainable Energy
Attn: SELFGEN Program Manager
8690 Balboa Avenue Suite 100
San Diego, CA 92123
Southern California Edison (SCE)
Web Site: www.sce.com/rebatesandsavings/CaliforniaSolarInitiative
E-mail Address: greenh@sce.com
Contact Person: Program Manager, California Solar Initiative Program
Telephone: 1-800-799-4177
Fax: 626-302-6253
Mailing Address:
Southern California Edison
6042A Irwindale Avenue
Irwindale, CA 91702
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Please note: The information on the DSIRE web site provides an overview of incentives and other policies, but it should not be used as the only source of information when making purchasing decisions, investment decisions, tax decisions or other binding agreements. Please refer to the individual contact provided in each record to verify that a specific incentive or other policy is applicable to your specific project.
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