CALIFORNIA

California Solar Initiative – State Rebate

Eligible Technologies:

  • Solar Space Heat
  • Solar Thermal Electric
  • Solar Thermal Process Heat
  • Photovoltaics
Eligible Sectors:

  • Commercial
  • Residential
  • Industrial
  • many more, found here.
Incentives: There are multiple incentives for every sector and type of system. You may find more information by following this link, which will take you to the California Solar Initiative State Rebate page where you will find all of the most up-to-date rebate information available.Below, you will find an excerpt of the rebates available as of Dec 21, 2009.
EPBB Payments (per Watt)
Step Statewide
MW in Step
Residential Non-Residential
Commercial Government/
Non-Profit
1 50 n/a n/a n/a
2 70 $2.50 $2.50 $3.25
3 100 $2.20 $2.20 $2.95
4 130 $1.90 $1.90 $2.65
5 160 $1.55 $1.55 $2.30
6 190 $1.10 $1.10 $1.85
7 215 $0.65 $0.65 $1.40
8 250 $0.35 $0.35 $1.10
9 285 $0.25 $0.25 $0.90
10 350 $0.20 $0.20 $0.70
Summary:Incentives for Other Solar Electric Generating Technologies
The CSI Handbook which was released in January 2008 explained the eligibility of other solar electric generating technologies which either create electricity or displace electricity. Incentives for other solar electric generating technologies are available for CSI incentives on October 1, 2008. The CPUC specifically recognizes electric generating solar thermal as including dish sterling, 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 limited to $100.8 million. While solar water heaters can also displace electricity, the CPUC does not include them in the CSI because they plan to offer incentives for solar water heaters through a different program based on the pilot program currently in operation within the service area of San Diego Gas and Electric. Future CSI rulemaking activities will address energy-efficiency requirements, additional affordable housing incentives, and other program elements.
Low-Income Programs
10% 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 developing 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.
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 Performance-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.

The program is managed by the Pacific Gas and Electric Company (PG&E), Southern California Edison (SCE), and the California Center for Sustainable Energy.

The state of California also has approximately 75 utility rebate programs available, among many others. You may find all of the rebates and incentives available to California residents here.

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