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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. |
