California Solar Initiative (CSI)
Incentive Type
State Rebate Program
Eligible Renewable/Other Technologies
Photovoltaics
Applicable Sectors
Commercial, Industrial, Residential, Nonprofit, Schools, Local Government, State Government, Federal Government, Multi-Family Residential, Low-Income Residential, Agricultural, Institutional, (All customers of PG&E, SDG&E, SCE)
Incentive Amount
Varies by sector and system size (see below)
Program Budget
$3.2 billion over 10 years
Ownership of Renewable Energy Credits
Remains with customer-producer
Website
http://www.gosolarcalifornia.ca.gov
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 projects with the objective of providing 3,000 MW of solar capacity by 2017. The CSI will fund solar photovoltaics (PV) initially, with other solar technologies included at a later point.
The program shuffles administrative responsibilities of the previous incentive programs in which the California Energy Commission (CEC) handled the Emerging Renewables Program for projects under 30 kW, and the CPUC oversaw the Self-Generation Incentive Program (SGIP) for renewables larger than 30 kW up to 5 MW: Beginning in 2007, the CPUC will manage the solar program for non-residential and existing residential customers ($2+ billion), while the CEC will oversee the New Solar Homes Partnership targeting the residential new construction market (~$350 million).
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, but note that many already offer PV rebates (nearly $800 million).
CSI Incentives for Non-residential Buildings and Existing Homes: Among the elements of the CSI is the transition to performance-based and expected performance-based incentives in 2007 (rather than continue with purely capacity-based buydowns) with the aim of promoting effective system design and installation. CSI incentive Levels for 2007 are as follows:
Expected Performance-Based Buydown for Systems under 100 kW: $2.50/W AC for residential and commercial systems, adjusted based on expected performance $3.25/W AC for government entities and nonprofits, adjusted based on expected performance Incentives will be awarded as a one-time, up-front payment based on expected performance, which will be calculated using equipment ratings and installation factors, such as geographic location, tilt, orientation and shading.
Performance-Based Incentives for Systems 100 kW and larger: $0.39/kWh for first 5 years for taxable entities $0.50/kWh for first 5 years for government entities and nonprofits Incentives will be paid monthly based on the actual energy produced for a period of five years. Residential and small commercial projects can also choose to opt-in to this performance-based incentive payment approach.
CSI incentive levels will automatically be reduced over the duration of the program in 10 steps based on the aggregate capacity of solar installed. In this way, incentive reductions are linked to levels of solar demand rather than an arbitrary timetable.
The program will be managed by the existing SGIP administrators – Pacific Gas and Electric Company, Southern California Edison, and the San Diego Regional Energy Office. However, at a later point, an independent administrator may run the residential retrofit component of the CSI.
Future CSI rulemaking activities will address energy efficiency requirements, incentives for non-photovoltaic solar projects, affordable housing incentives, and other program elements.
CPUC Program Administrators
Southern California Edison
California Solar Initiative
2131 Walnut Grove Avenue
G01, 3rd Floor, B10
Rosemead, CA 91770
Telephone: 1-800-736-4777
San Diego Regional Energy Office
(customers of San
Diego Gas & Electric)
8690 Balboa Avenue, #100
San Diego, CA 92123
1-866-sdenergy or 858-244-1177
E-mail address: csi@sdenergy.org
Pacific Gas and Electric Company
PG&E Integrated Processing Center
P.O. Box 7265
San Francisco, CA 94120-7265
E-mail address: solar@pge.com
New Solar Homes Partnership (NSHP)
The CEC will manage a 10-year, $350 million program to encourage solar in new home construction by working with builders and developers to incorporate high levels of energy efficiency and high-performing solar systems to help create a sustainable solar market. The NSHP will specifically target single family, low-income, and multi-family housing markets. Incentive details are in development.
NSHP Contact:
California Energy Commission
1516 Ninth Street
MS-45
Sacramento, CA 95814-5512
Telephone:
1-800-555-7794
E-mail: renewable@energy.state.ca.us
