california

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.

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 30 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. 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. Systems under 30 kW also have the option of opting for a performance-based incentive rather than the incentive based on expected performance.

Performance-Based Incentives (PBI) for systems 30 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 30 kW threshold can also choose to opt in to the PBI rather than the upfront Expected Performance-Based Buydown approach. However, all installations of 30 kW or larger must take the PBI. Click here for current incentive levels for each utility

Low-Income Programs
Ten percent of the CSI Program budget 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 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.

California Solar Initiative - Solar Water Heating Rebate Program

The state of California offers a rebate program to those switching to solar water heating. The rebate applies to the Residential, Commercial, and Multi-family residential sectors. Solar Heating systems that displace natural gas will be granted $12.82 per estimated therm displace an Solar Heating Systems that displace electricity will be granted $0.37 per estimated kWh displaced. The maximum rebate for Single-family residential systems that displace natural gas is $1,875. The maximum rebate for Single-family residential systems that displace electricity is $1,250. The maximum rebate for Commercial and multifamily residential systems that displace natural gas is $500,000, and the maximum rebate for Commercial and multifamily residential systems that displace electricity is $250,000.

CEC - New Solar Homes Partnership

There are four incentive levels available:

Base Incentive: Expected Performance Based Incentive (EPBI) level starting in 2007 was $2.50/watt. The base incentive applies to custom homes, small developments (less than 6 homes), housing developments where solar is offered as an option, common areas of housing developments, and housing developments where solar will be installed on less than 50% of the homes.

Solar as a Standard Feature Incentive: The EPBI level starting in 2007 was $2.60/watt. To qualify, a builder of 6 or more homes in a development must commit to a minimum of 50% of the residential units in the subdivision or multifamily housing development, to installing solar electric systems that meet or exceed the California Flexible Installation criteria. (The California Flexible Installation criteria option was developed by the Energy Commission to make it easy to use and encourage participation by large home developers.)

In July 2007, the NSHP Guidebook was revised to include a new incentive structure to meet the needs of California’s affordable housing community.

Residential Areas of Affordable Housing Projects: The EPBI amount starting in 2007 was $3.50/watt. This applies to affordable housing projects of all sizes.

Common Areas of Affordable Housing Projects: The EPBI level starting in July 2007 was $3.30/watt. This incentive level applies to solar electric systems serving the common areas of affordable housing projects.

San Francisco - Solar Energy Incentive Program

Solar Electric Tax Credit:
There is a 30% tax credit for all residential solar installations starting on January 1, 2009. If a customers’ tax liability is not as large as the value of the solar tax credit, customers can carry forward this credit until 2016. This tax credit can also be deducted directly from a customer’s AMT liability.