California Solar Energy (PV) Rebate Information: The New California Solar Initiative ProgramSince January of 2007 the rebate system for solar photovoltaic energy in California has undergone a major change. Here are the new parameters, as we understand them (some details have not yet been finalized). Call us for further information. Requirements for Photovoltaic (PV) Systems under 100 kWThe current basic incentive level is $2.40 per watt (to decline to zero by 2017). Customers have the option to use the EPBB (Expected Performance Based Buy Down) or the PBI (Performance Based Incentive). New residential construction (New Solar Homes Partnership) and wind energy customers, will continue to have their rebate programs administered by the California Energy Commission (CEC). See the CEC Guidebook for Emerging Renewables Program on the CEC website. Customers who want to add photovoltaic to their existing residence or business, should go to the gosolarcalifornia website. Your local electric company is now administering the California Solar Initiative rebate system for the California Public Utilities Commission (CPUC). To be eligible for the new California Solar Initiative rebate program, customers must:- Be customers of PG&E, Southern California Edison or San Diego Gas & Electric
- Perform
or have an energy audit. After the 1st of the year this may have to be
professionally done.
- Use a contractor with an A, B, or C-10 license, or a C-46 license for PV systems
or install the system yourself for the same rebate.
- There's a lot of
paperwork. Around 45 pages.
-
Also, photovoltaic installation must now include a ten-year warranty on the complete system. There are two methods of claiming the solar rebate, the Expected Performance Buydown (EPBB) method and the Performance Based Incentive (PBI) method. The Expected Performance Based Buy Down (EPBB)- For installations < 100 kW
- This system issues a one-time payment to the customer based on the expected performance of the system.
- The expected performance is calculated based on the efficiency of the PV solar panels, this would make the location, orientation and tilt angle important. Also the efficiency of the inverter is calculated into the output. Your rebate amount varies according to your zip code. A northern zip code would receive less of a rebate because it would receive fewer hours of sunlight. So the panels would have to be tilted at the correct angle for your latitude, or you will be penalized for reduced output. The panels need to face between 180 and 270 degrees. Any angle between these two angles is treated equally. Shading of the panels is also accounted for in this "design factor".
The Performance Based Incentive (PBI)Power to the People -- Not!We never thought we would feel nostalgic for the good old days of the CEC administering the solar rebate program in California. Those endless PG&E ads on television and radio certainly give us that warm and fuzzy feeling that the utility company actually wants to support solar and renewable energy. However, the reality is that the new rebate system has become so complicated and difficult to navigate that we can only question how committed the CPUC, the Governor and the electric utilities are to producing cleaner energy in California. The original CEC application used to be one page long, but the new application has grown to a whopping
45 pages. Not only is this unnecessarily complicated for potential solar PV customers, but we are still awaiting all the information needed to put applications in under the new system. For example, we still need a complete listing of eligible photovoltaic panels so that we may use the new PV calculator, a required step in the application process. (The California Energy System attests that the photovoltaic vendors need to submit their information to the CEC before they can be added to the listing. Please, someone help them get the necessary information!) Your house or company where you want to install solar will now have to have an energy audit. PG&E has also changed the time-of-use meter from an E7 to an E6. This change reduces the incentive and payback for TOU. There was lots of objections to this and currently 5000 E7 applications are being allowed. Note: The latest update is that PG&E is allowing 5000 E7 meters on a first come first served basis. We can only protest and hope PG&E listens to our concerns. Also a 10-year warranty is now required on any solar installation. If you do a self-install system, you will need a licensed contractor or electrician to sign off on the complete system installation and all the components. It may be difficult to find someone who is willing to take on this 10-year liability on all the equipment. There are still issues about replacing the warrantied equipment, as all the installed equipment is be warrantied for the 10-year period. The additional warranty requirements will surely lead to more expensive installation costs. It looks to us like the administrators of the rebate program do not want any owner-installed systems. This might be good for installers' bottom line but not for the cost-conscious consumer.
Currently owner installed systems are allowed as long as they pass the
building inspector. This is good as the rebates are the same for
a contractor or an owner installed system. So getting a solar system rebate in California has become much more complicated and has added several layers of bureaucracy. This is going to be more challenging for the customer, as well as the vendor or installer. It will make a solar system more expensive because of the added time it will take to prepare the application and add to the cost of installation. The electric companies are getting 5% of the rebate money to administer the system, which has so far succeeded in making the process more complicated, and has already reduced the number of applications being filed. The ink is not yet dry on some of these ideas so we can only hope that some of them get changed or removed as we move ahead. We need fewer obstacles for the installation of renewable energy, not more hoops to jump through. So far we are not impressed.
The California Solar Initiative -- Triumph or Train Wreck?
A Year to Date review of the California Public Utility
Commissions' California Solar Initiative
The following information is from SunCentric's webcast held
in November, 2007.
Since its passage in August of 2006, the California Solar
Initiative (CSI) has been touted as the best solar program in the U.S., and
even one of the best in the world. Indeed, the $3 billion performance-based
incentive program designed to bring 3,000 megawatts (MW) of solar to
California over the next ten years is unprecedented in this country.
However, while the CSI looks good in theory, the program has drastically
slowed the residential and commercial markets in California and threatens to
seriously damage the state's solar industry, according to a report released
today from SunCentric Incorporated.
Some of the results are extremely disappointing with only 14
MW of residential reservations issued and an ongoing, nightmarish transition
for residential solar businesses to the CSI.
The authors of the report, SunCentric <http://www.suncentricinc.com/>President
Glenn Harris and Vice President, Shannon Moynahan, have closely studied the
CSI over the last eight months and put together this new report <http://www.renewableenergyaccess.com/assets/documents/2007/CSI_SUNCENTRIC_REPORT.pdf>
on how the program has impacted the California solar industry.
The authors' findings suggest that if the program continues
down its current path, the state's solar industry faces an unsustainable
future. The report identifies key problems in both the residential and
commercial markets and offers solutions to fix those problems to ensure that
the CSI is successful.
*Excerpt from the Introduction* "The California Solar Initiative (CSI)
program has completed its first eight months in business—and the results are
in. Some of the early achievements of the program are impressive, like the
140 MW of non-residential reservations, the acceptance of performance based
incentives by non-residential consumers and the rise of third party
financial companies. However, some of the results are extremely
disappointing with only 14 MW of residential reservations issued and an
ongoing, nightmarish transition for residential solar businesses to the CSI.
Megawatts reserved don’t tell the whole story and are not the best indicator
of the overall performance, or of the short term or long term outlook for
the CSI. Watch the tracks ahead because we believe that in this version of
the 'Little Engine That Could,' the engine might just run out of steam. In
our year to date review, we’ll show some of the early results for the CPUC’s
CSI program and contrast these results to the previous programs. We’ll
highlight the residential and non-residential programs, with an eye on not
only the megawatts, but on the program’s achievement of some of these
initial goals. We’ll also make a few predictions and some practical
recommendations."/ /
Download the 18-page report <http://www.renewableenergyaccess.com/assets/documents/2007/CSI_SUNCENTRIC_REPORT.pdf>
below. For Further Information * Full Report
<http://www.renewableenergyaccess.com/assets/documents/2007/CSI_SUNCENTRIC_REPORT.pdf;jsessionid=A070768BF9DA40FCCE15447C83CF3 Solar Hot Water
New California incentives for solar thermal projects including solar heating and cooling
have recently been signed by the Governor and are awaiting implementation. Federal Tax Credit There is currently a Federal Tax Credit for up to 30% of a solar PV system with a cap of $2,000 for a residence and no cap for a business. Solar hot water projects also get a $2,000 Federal Tax Credit if the solar thermal system is SRCC approved. Check with your accounting professional. Property Tax Assessment: Many counties and cities in California will not reassess your house or business for improvements if you install a solar system. This is very important and requires you to check with your city or county to make sure you will not be reassessed for solar improvements on your property tax assessment. If you are not located in California, check the website at http://www.dsireusa.org to see what rebates may be available in your state. | 
