Legislation
In 1996 Assembly Bill 1890 was passed, directing the Investor-owned Utilities in the state to being collecting $540 million from 1998-2002 to fund future rebate programs for solar energy. AB 1890 also established a public goods surcharge, which would help fund public interest programs such as the Public Interest Energy Research program and renewable energy programs. Senate Bill 90, which was passed in 1997, helped develop the administrative and expenditure criteria for the implementation of AB 1890. The public goods surcharge was extended for ten years with the passage of Assembly Bills 995 and 1194.
California’s Renewable Standard Portfolio (RSP) was set in 2002 with the passage of Senate Bill 1078. The RSP establishes a certain percentage of electricity produced in the state must come from renewable sources by a certain year. SB 1078 set California’s RSP at 20% by 2017. This number would be increased in more recent legislation, but that was the standard set in 2002.
In 2006 Senate Bill 1 established the “California Solar Initiative“, which expanded the number of utilities required to participate in quest to generate an increased amount of electricity from solar power. In addition to the Investor-Owned Utilities, Municipal Utilities were now required to offer rebate programs. SB 1 also directed utilities to decrease the rebate amounts offered each year of the ten year program by a certain percentage.
Some bills proposed already in 2009 include Assembly Bill 3, which if passed will require a Renewable Energy Workforce Readiness Program be established. AB 3 also set some guidelines to ensure that training programs and job opportunities in the future renewable energy job force are fairly distributed.
If Assembly Bill 64 is passed, California’s RSP will require 20% of electricity in the state to come from renewable sources by the end of 2010. Previously the standard had been 20% by 2017. AB 64 goes on to require at least 25% of electricity produced in the state come from renewable sources by the end of 2015, 35% by the end of 2020, and at least have a goal of reaching 50% by the end of 2035. AB 64 also proposes to establish a Renewable Infrastructure Authority to issue bonds, designate renewable energy zones, certify new power plants, and designate transmission corridors.
Another interesting bill proposed is the Carbon Labeling Act of 2009. Assembly Bill 19 would enact a voluntary “carbon footprint label” for consumer products sold in the state.
State Rebate Programs
In January of 2006 California Public Utilities Commission adopted the strong>California Solar Initiative, a program designed to provide more than $3 billion in incentives for solar energy projects in the state. The objective was to produce 3000 Megawatts of solar capacity in the state by 2016. Originally limited to customers of the state’s Investor-Owned Utilities, the California Solar Initiative was expanded in August of 2006, with the passage of Senate Bill 1, to include the state’s Municipal Utilities as well. SB 1 directed Municipal Utilities to begin offering rebate programs beginning in 2008.
There were two basic different kinds of incentives included in the California Solar Initiative; Expected Performance-Based Buy downs and Performance-Based Incentives. The Expected Performance-Based Buy downs relied on calculations of the installed system’s expected performance, calculations which considered factors such as the rating of the actual solar system installed and such things as geographic location, tilt, orientation and shading.
The Expected Performance Incentives were used for sources under 50 KW and were $2.50/ watt AC for residential and commercial installations, and $3.25/watt AC for government and non-profit entities.
Performance-Based Incentives were for systems 50 KW or greater and offered $0.39/kWh for 5 years for residential and commercial installations and $0.50/kWh for governments and non-profits.
The program is managed by Pacific Gas & Electricity (PG & E), Southern California Edison and the California Center for Sustainable Energy. The budget for the California Solar Initiative included a stipulation that a certain percentage of the funds be used for two low-income solar incentive programs. One program directed at single families is still very much in the works as of April 2009, but applications are being accepted for the Multi-family Affordable Solar Housing (MASH) program. For photovoltaic systems offsetting common area loads a rebate of $3.30/watt is offered, and $4.00/watt for systems
offsetting tenant loads. Utilities are developing virtual net energy metering 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.
The next roll out of rebate programs offered as a result of the California Solar Initiative will offer even higher rebates and incentives for applicants who are able to provide proof of “direct tenant benefits”. As of April 2009 these direct tenant benefits are still being defined, but it is believed that by offering the virtual net-metering system in the first track of rebates, those participants will be able to effectively demonstrate reduced energy costs, for example, from having solar systems installed.
While the Solar Initiative in California is funding $3 billion worth of incentives over 10 years, it should be noted that most of this money is being used for investment in solar photovoltaic systems. Only a small pilot program for solar water heating was included in the funding.
Alameda Power & Telecom Solar Photovoltaics Rebate Program has a goal of reaching 2,127 KW of new solar capacity during the life
of the program. The rebate is $2.60/watt in 2009.
Azusa Light & Water Solar Partnership Program is offering its customers $4/watt AC if they give Renewable Energy Credits (RECs) to the utility company, or $2.80 watt if customers want to retain ownership of their RECs. The maximum incentive is capped at 50% of installation costs and the minimum eligible size for the system installed is 1 KW.
Municipal Rebate Programs
When Senate Bill 1 expanded the scope of utilities required to participate in increasing the amount of electricity from renewable sources, some municipal utilities already had rebate programs established in their communities. As directed in SB 1, rebate programs should be designed to decrease by a certain percentage every year during the ten year program. This encourages early investment because if you know you want to install a solar system for your home or business, the sooner you do it the larger the rebate. Greater investment early on then contributes to lowering costs later on. To counteract the decreasing rebate, a higher aggregate capacity for installations is allowed over the life of the program.
Anaheim Public Utilities offers a rebate of $4.00/watt AC for residential photovoltaic (PV) installations and $2.80/watt AC for commercial, up to 100 KW.
Banning Electric Department’s Solar Support Program offers a $3.72/watt AC rebate with a maximum amount capped at 50% of the total system costs. Participants must be connected to the grid and must net-meter.
Burbank Water and Power offers a rebate of $3.00/watt AC if customers keep their Renewable Energy Credits (RECs), and $3.50/watt AC if they grant their RECs to the utility. For schools, non-profits, and affordable housing projects the rebate is $4.00/watt. They rates apply to systems up to 30KW. For PV systems over 30 KW the rates are $0.414/kWh if customers keep their RECs, $0.483/kWh if they grant them to the utility and $0.552/kWh for schools, non-profits and affordable housing projects.
City of Lompoc Utilities PV Rebate Program offers a rebate of $3.50/watt AC for non-profits, $3.00/watt AC for all other participants. The maximum amount of the incentive is capped at 50% of the system costs, up to $50,000.
City of Palo Alto Utilities has a PV Partners Program which offers residential customers a $2.00/watt AC rebate, small and medium commercial customers less than 100 KW can receive a $2.60/watt AC rebate. Systems greater than 100 KW receive a $0.33/kWh rebate for 60 months. For large commercial systems less than 100 KW the rebate is $2.20/watt AC, for large commercial systems greater than 100 KW the rebate is $0.28/kWh for 60 months. The rate for non-profits who have systems less than 100 KW the rebate is $3.75/watt AC, for systems greater than 100 KW it is $0.47 kWh for 60 months. As of April 2008, City of Palo customers have installed 257 PV systems totaling 827 KW in capacity.
City of Palo Alto Utilities also has a Solar Water Heating Program with a goal of 1000 new systems installed by 2020. There are two different kinds of incentives offered; the Prescriptive Method and the Area Method. The Prescriptive Method is calculated based on the Solar Rating and Certification Corporation rated savings of the system and a design-based solar factor. The Prescriptive method is for residential and small business installations only and is capped at $1500. The Area Method is based on the type of system involved and is capped at $75,000. AB 1470 passed in 2007 requires solar water heating rebate programs if the pilot program in San Diego is effective. Palo Alto Utilities merely opted to start their rebate program early.
Colton Public Utilities PV Rebate Program offers $4.00/watt with a maximum for residential installations at 50% of costs up to $20,000, and commercial installations 50% of costs up to $50,000
Glendale Water and Power Solar Solutions Program offers a $3.72/watt for systems 30 KW DC or less, $4.65/watt for affordable housing projects. For systems 30 KW or more the rebate is $0.456/kWh, or $0.641 for affordable housing projects. The maximum incentive is capped at 50% of all costs.
Hercules Municipal Utility PV Rebate Program offers a $3.00/watt AC rebate with a maximum incentive capped at $10,000, and a maximum size of 10 KW.
IID Energy PV Solutions Rebate Program offers a rebate of $2.60/watt AC with a minimum size of 1 KW and a maximum size of 1 MW. Imperial Irrigation District is unable, however, to accept anymore applications for 2009 due to lack
of funding.
LADWE (Los Angelos Department of Water and Power) Solar Incentive Program has a maximum incentive capped at 75% of the total project costs for residential installations and a maximum of 50% for commercial systems. The minimum eligible size is 1 KW and maximum 1 MW AC per site.
Lodi Electric Utility PV Rebate Program offers a rebate of $2.60/watt AC with a maximum incentive of $375,000 per system, capped at payments of $75,000 per customer, per year, until paid.
Merced Irrigation District PV Buydown Program offers a $2.80/watt AC rebate with a maximum incentive capped at $8,000 for residential installations and $70,000 for commercial.
Modesto Irrigation District Photovoltaic Rebate Program offers a rebate of $2.60/watt AC for systems between 1 KW and 30 KW and $3.10/watt AC for government and non-profit entities. The minimum size to be eligible is 1 KW.
Pasadena Water & Power Solar Power Installation Rebate has a goal to fund the installation of 14 MW by 2017. For systems up to 50 KW they offer a expected performance-based incentive of $3.15/watt AC for residential installations, $2.00/watt AC for commercial, and $2.60/watt AC for government and non-profit entities. For systems larger than 50 KW the rebate is performance based with a rebate of 0.476/kWh for residential locations, $0.302/kWh for commercial, and $0.393/kWh for non-profit and government entities. Minimum size is 1 KW and maximum size is 1,000 KW.
Plumas-Sierra REC – PV Rebate Program has a 2009 rebate level of $2.60/watt AC with a maximum incentive capped at $6,000 for residential, agricultural, and non-profit applications, $12,000 cap for small commercial, and $20,000 for large commercial and industrial.
Riverside Public Utilities Non-Residential PV Incentive Program offers a commercial installation rebate of $3.00/watt AC with a maximum of 50% of the total project costs, or the specific dollar limits which vary according to the rage schedule of the applicant – whichever is less. The cap for incentives with a flat rate is $50,000, the cap for demand customers is $2000,000, and the cap for large customers (TOU) is $500,000. The Riverside Residential PV Incentive Program offers a $3.00/watt AC rebate with a maximum of $25,000 or 50% of project costs – whichever is less.
Roseville Electric PV Buydown Program offers a rebate of $3.00/watt AC with a maximum incentive capped at $10,000 for residential installations and $66,000 for non-residential installations.
Silicon Valley Power Solar Electric Buydown Program offers a $4.50/watt AC rebate for residential installations, $3.00/watt AC for commercial installations up to 100 KW and $0.40 for commercial installations from 100 KW to 1 MW. Performance-based incentives are paid to the customer quarterly for a period of 5 years. The maximum incentive for residential installations is $45,000.
Sacramento Municipal Utility District’s (SMUD) Residential Solar program offers 100% financing for installing solar water heating or PV systems at a rate of 8.5% for 10 years. The PV Residential Retrofit Buydown Program offers a rebate of $2.50/watt AC and the Solar Water Heater Rebate Program offers a rebate of $1500 per system.
Truckee Donner PUD Photovoltaic Buydown Program is not accepting anymore applications for 2009 or 2010. As of January 2009 they are accepting applications for the 2011 rebate program. The 2008 rebate level was $5.00/watt, 2009 was $4.50/watt, and 2010 will be $4.00/watt with a maximum incentive capped at $15,000 for residential installations and $25,000 for commercial.
Turlock Irrigation District PV Rebate Program offers a rebate of $4.00/watt AC for residential installations and $2.80/watt AC for commercial with a maximum incentive of 50% of total costs. The minimum eligible size is 1 KW and the maximum 1 MW.
Ukiah Utilities PV Buydown Program offers a rebate of $2.52/watt AC with a maximum incentive capped at $6,000 for residential installations and $15,00 for commercial. The maximum size is 1 MW.
Solar Business News
Walmart is expanding their solar installations in California. The world’s largest retailer has 18 solar arrays already installed at store locations in California and with more than 200 stores 7 distribution centers throughout the state there are plenty of stores to choose from. Walmart will team up with BP Solar, SunEdison LLC, and PowerLight to install solar panels on 10 to 20 facilities in the next 18 months to provide anywhere from 20% to 30% of the installation location’s electricity with plans to eventually reach 100%.
Pacific Gas & Light (PG & E) is investing directly in renewable energy for the first time in ten years. Until very recently PG & E typically purchased electricity only from third party clean energy projects, now they have a 5 year program to produce 500 MW of solar power . Instead of building one big plant, PG & E is adopting the strategy of generating electricity from a collection of midsize plants somewhere in the area of 1 MW to 20 MW capacity. A solar power plant with a capacity for producing 1 MW can power one large retail store or 300 homes. PG & E will rely on other providers for the remaining 250 MW of power necessary to reach their goal.
Pacific Gas & Light is also teaming up with Solaren Corp to establish a pilot roject which captures solar power in space and then beams the power back down to earth via radio signals. Solaren uses solar panels on satellites in orbit to capture the sun’s power, then converts the power into a radio frequency which can be sent to a receiving station, converted to electriciy and fed into PG & E’s grid. While noone has built a system the size Solaren envisions for this project, the technology itself is not so new. Satellites have been collecting solar energy via solar cells on spacecraft and sending it to earth for over 45 years. The concept of capturing the sun’s energy in space offers the benefit of not worrying about cloudy days or other factors here on earth which can interfere with our ability to take full advantage of the sun’s energy.
Older data that used to be contained within this article can now be found here.
