.01 Photovoltiac Systems discussion
CITY OF CUPERTINO
10300 Torre Avenue, Cupertino, California 95014
DEPARTMENT OF COMMUNITY DEVELOPMENT REPORT FORM
Agenda Date: June 24, 2008
Application Summary:
Incentives offered by Pacific Gas & Electric Company (PG&E) to install photovoltaic
systems.
BACKGROUND:
At the June 10, 2008 Planning Commission meeting, the Commission wanted
information on the incentives and programs offered by PG&E. The Commission had
also requested that a representative from PG&E be invited to provide this information.
DISCUSSION:
Planning Staff has contacted PG&E through their Government Relations
Representative, Papia Gambelin, to arrange for a PG&E representative to attend the
Planning Commission meeting. Staff has not received confirmation that a representative
will be able to attend the meeting.
PG&E has a California Solar Initiative (CSI) Program that provides various financial
incentives for solar installation on homes or businesses. Over the next decade, the
California Public Utilities Commission (CPUC), through CSI, will provide over $2.1
billion in incentives for existing residential homes and existing (and new) commercial,
industrial and agricultural properties.
As part of Governor Arnold Schwarzenegger's Million Solar Roofs Program, California
has set a goal to create 3,000 megawatts of new, solar produced electricity by 2017. CSI
supports this goal with financial incentives to promote cleaner energy for the state and
help lower the cost of solar energy systems for consumers. See attached (Exhibit A) for
the frequently asked questions about the CSI program.
Attached is also PG&E's accounting of where they stand in meeting Governor
Schwarzenegger's goal of 3000 megawatts as of June 2, 2008 (Exhibit B). The matrix
shows the number of active projects and the system size that is being installed and also
indicates the total incentive amounts provided.
PG&E also has fact sheets providing information about the California Solar Initiative
program for residential, business and installers of photovoltaic systems. These fact
sheets are included as Exhibit C.
Submitted by: Steve Piasecki, Director of Community Developm~
Enclosures:
Exhibit A: Frequently asked questions about the CSI program
Exhibit B: PG&E CSI Program Statistics (Updated: June 2, 2008)
Exhibit C: Fact Sheets for Residential Customers, Business Customers and Installers
G:\ Planning \ PDREPORT\Pc2 \2008\PG&E Solar Incen tives. doc
1-1
CSI F AQs
Page 1 of7
CSI FAQs
What is a Photovoltaic (PV) system?
EXHIBIT A
Photovoltaic (PV) systems are the most widely used means of generating electricity
from solar energy. A PV system uses panels (or cells) of semiconductor material
similar to that used in computer chips to absorb sunlight and convert it into
electricity.
What is Net Energy Metering?
Photovoltaic systems can be connected to the electric grid and "spin" the electric
meter backwards (net metering) by providing credit for the energy produced against
charges for energy that you use. Systems connected to the grid are referred to as
"interconnected. "
How do I qualify for a CSI incentive?
All incentive recipients must satisfy the following conditions to obtain the incentive:
Be an electric customer of PG&E, Southern California Edison, or San Diego
Gas & Electric. Gas-only customers are no longer eligible to receive incentives
through their gas utility.
Install separate meters to measure solar output and report performance back
to the program administrator.
Perform an energy efficiency audit.
Comply with new insurance, warranty, and permanence requirements.
What is the difference between an Expected Performance
Based Buy down (EPBB) and a Performance Based
Incentives (PBI)?
An Expected Performance Based Buy down (EPBB) is for PV systems less than 100
kW, and the incentive amount is paid in a one-time incentive payment.
The Performance Based Incentive (PBI) is for systems larger than 100 kW, and is
paid based on actual energy produced on a monthly basis for 5 years. The maximum
incentive provided is for 1 MW (although customers may install up to 5 MW).
Customers with any system size may also opt into PBI.
How much will it cost to install a PV system?
The cost for every project varies with technology, system size, and system
configuration. Consult with your installer for details specific to your site.
Where can I get information about owning a solar system?
http://www.pge.com/mybusiness/ energysavingsrebateli;~ar/ csi/ csifaq s/
6/19/2008
CSI FAQs
Page 2 of7
PG&E's solar webpages offer information and resources for everything from start to
finish, including links to installers, solar classes, incentive applications, and tax
guides. The California Energy Commission has a solar guide to answer more
questions, "Buying a Photovoltaic Solar Electric System - A Consumer Guide". Find
it on PG&E's solar residential and business installation websites or visit the
QalifQrnt~..EJL~rgyi&lJlm~siQn.
How much will a PV system payback-and when?
The amount of "payback" - and the length of time it will take to pay for the
installation costs for your PV system - depends on technology, system size, and
system configuration, as well as weather and location. "Breaking even" occurs when
the total utility savings equal the value of the installed renewable energy system.
There are a number of online calculators to help you estimate property value
changes and payback times.
A simple equation to use is:
Years to Break Even = (Net cost - property value increase) / ("Pre-tax" average
annual utility savings)
TIP:
You can maximize your energy savings - and payback - by making sure your
home/facility and appliances/equipment are energy efficient.
How much energy will a PV system generate?
Energy generated varies by project depending on such factors as technology,
weather, location, and orientation. Your installer and online calculators can help
you estimate the system size you will need.
How much space willi need?
Each kW of solar photovoltaic generation capacity requires about 100 - 200 square
feet of roof or ground area depending on the efficiency of the panels. There are
many solar systems to choose from. Use PG&E's resources and your installer to help
determine what's best based on your home, site, energy needs, and budget.
How much help is available to pay for it?
In addition to the CSI incentive and energy efficiency rebate programs, there are
various financing options and both federal and state tax credits available for
qualifying PV systems. For tax credit information, visit the Tax Incentives
8.~sistanc~!"gjecHIJ.APlFebsite.
Will having my own generator ensure that I will have
power during a blackout?
http://www.pge.com/mybusiness/ energysavingsrebatel/~5tar/ csi/ csifaqs/
6/19/2008
CSI FAQs
Page 3 of7
Blackout coverage depends on how your system is configured. The contractor who
installs your system should be able to provide you with guidance on this. Another
source of information on system design for backup power is available on the
California Energy Commission Web site and is called "{A Guide to Photovoltaic (PV)
System Design and Installation}."
Where can I find a list of solar installers?
An installer will come to your home or business to do a solar site survey to
determine the feasibility of solar at your site. They will take a close look at your
facility t6 find out if solar is right for your home or business. It's a good idea to
interview potential installers and obtain at least 3 bids before making your selection.
Factors to consider include company reputation, warranty service, installed system
price, and energy output. And always be sure to check the status of the installer's
contractor license. Go to the State of California's Contractors State License Board
ly~psit~l for licensing information. You may want to consult the California Energy
Commission's (CEC) li~.LQ.f~Q..ntrl!.~t()r contacts or FindSoJar.com.
Why do I need to have an energy audit done?
Not only is the audit a requirement when applying for CSI but the audit also
provides you with valuable energy saving ideas to help manage energy use before
installing a solar system. See PG&E's webpages called "Installing Solar at Your
Home/Business" for information on completing an audit.
Are rebates and incentives considered taxable income?
Yes. Check with the IRS or your tax prepare l' for information and visit the Tax
Incentives Assistance Project (TIAP) website at energytaxincentives.org.
The California Energy Commission's program called "Ne~~J2.!E..LHQlJles Progra!!l"
I am making a service upgrade to old solar equipment.
Does this qualify for a CSI incentive?
At this time incentives are offered for new equipment only. Visit \'lww.calseia.org or
ly.ryw.fiD.Q~9IaI,.r.~Lm to find an installer for system repair and testing.
How is the incentive payment made?
Payable to Vendor - host customer submits a signed payment reassignment
(CSI handbook section 4-4.2). Host customer can assign anyone as many
times as they want.
Vendor Lease - Considered 3rd party system owner (handbook section 2.1.2);
submit copy oflease agreement, System Owner signs an SGIP contract (and
subject to any contract requirements, i.e. insurance)
EPBB incentive payment calculation: Incentive Rating*System Rating* Design
Factor
1-4
http://www.pge.com/mybusiness/ energysavingsrebates/solar/ csi/ csifaq s/
6/19/2008
CSI F AQs
Page 4 of7
Link to EPBJ3.
Who can perform an installation?
Self-installations are acceptable as long as proper building permits and local codes
are adhered to.
What is the12-month peak usage?
The peak system size is based on a 12-month energy usage history. If you have
less usage history, estimate 12 months based on available information.
Expect to add load - provide engineering calculations (CSI handbook section
2.2.5.1) to demonstrate added load.
Calculation: 12 mo kWh/(0.18*8760)
How do I monitor the incentives?
Visit the Triggs;] Tracker Link which is updated at real time but not showing
projects under review.
What is a "Design Factor"?
A Design Factor is determined by location, tilt, and shading. The Expected
Performance Based Buy down (EPBB) calculator comes up with the Design Factor.
How do I get a copy of the CSI Handbook?
The Handbook is still in draft form. We hope to have a final decision from the CPUC
soon, although there will be future non-draft versions as program modifications
come along. Print the Draft CSI Handbook from our website.
What is the CSI metering and rate schedule requirement?
TOU requirements are optional for CSI applicants not otherwise required to take
service on TOU rates until the CPUC develops and make effective TOU tariffs that
meet the requirements of Section 2851(a)(4).
Do I submit the entire audit report with my CSI
application?
Yes. Print the entire audit report (about 15 pages) and submit it with the CSI
reservation request.
I have a new home/new construction. Where do I apply for
an incentive?
The California Energy Commission's program called "New Solar Homes Program"
http://www.pge.com/mybusiness/ energysavingsrebatel,i;glar/ csi/ csifaqs/
6/19/2008
CSI FAQs
Page 5 of7
Are there incentives for solar water heaters?
This is not offered at this time. The Phase 2 Decision of the CSI handbook, due out
in Spring '07, will discuss options.
Is the payment level locked in during the acceptance
phase?
Yes. Once we reserve a project, incentives are locked in for the project life.
Who is the application fee check made out to?
PG&E
Who pays for the new solar meters?
The customer pays for the net generation output meter (NGOM) and metering
services for the PV system.
Where can I find my homes "Expected Future
Performance" figure used in the formula for the EPBB
calculations?
The EPBB reference point for all systems is in Orange, CA. PG&E also provides
specific zip code information if you would like to see how your area compares to
Orange.
What is the turn-around time for processing a reservation
request? How much time should we plan between initial
reservation send off and receipt of the incentive claim
form?
Turn around depends on the completeness of the application and the number of
applications that we receive at any given time. We acknowledge applications via e-
mail within 5 business days, and typically review applications within a few weeks of
receipt. Once we reserve funding (application is complete, app fee if applicable has
been received) the customer must install and interconnect the project within 1 year
(18 months for public entities). If a project is ready sooner, we will accept incentive
claim packages before the reservation expiration date.
Why can't I enter in whether a system is fixed or is a
tracking system in the EPBB calculator?
The CPUC has determined that tracking systems should not be used in determining
the Design Factor (which the EPBB calculator does), and will not affect the CSI
1-6
http://www.pge.com/my business/ energysavingsrebates/solar/ csilcsifaqs/
6/1912008
CSI F AQs
Page 60f7
incentive for EPBB systems. If you are installing a tracking system, you should
perform a comparison to the EPBB incentive amount and compare to the PBI
incentive amount, as the PBI may be more lucrative.
I put in a solar system and received a rebate under the old
California Energy Commission's program. Now I want to
add panels. Can I qualify for an additional incentive under
the CSI program?
Yes. The customer can apply to the CSI Program for an incentive on the additional
panels they plan to add on to their existing system. PG&E may check with the SGIP
or CEC program guidelines to verify the size of the system they already have
installed to ensure there is no double dipping of incentives, etc.
Can the vendor take the PBI payments from PG&E and
then bill the customer based on the performance of the
systems?
Yes, PG&E can make payment to the vendor, as long as they and the Host Customer
have signed a payment reassignment form. (Section 4-4.2 of the CSI Handbook)
Will there be any problem if we submit our projects
through regular mail?
No. It is recommended, however, that applications be sent overnight or by certified
mail so that it can be tracked.
I am going to be installing a 13 kW system. The CSI
application says that if systems are larger than 10 kW
there is a 1% fee for applicants. Is that true?
Residential projects do not require an application fee. The fee is only for commercial
projects over 10 kW.
Can the vendor lease the system to the customer and take
the Performance Based Incentive (PBI) themselves?
Yes, they would be considered a third party system owner. The CSI handbook
(section 2.1.2) defines the System Owner. PG&E would need a copy ofthe lease
agreement, and the System Owner would need to sign the Self Generation Incentive
Program (SGIP) Contract and be subject to any contract requirements, such as
insurance.
Can the PG&E bill be replaced by a building permit for
1-7
http://www.pge.com/mybusiness/ energysavingsrebates/solar/ csi/ csifaqs/
6/19/2008
CSI F AQs
Page 70f7
new construction?
No. For non-residential new construction, PG&E needs engineering calculations,
single-line diagrams, and panel schedules so we can determine the future onsite
load ofthe facility.
Is a signed Installation Labor Contract no longer required
for the rebate application?
For the "2 step" process for residential customers and non-residential projects
under 10 kW, the installation contract is required with the application. For the "3
step" process, for non-residential systems greater than 10 kW, the installation
contract is to be submitted with the project advancement milestone documentation.
Is there paperwork that we can get signed in advance?
For example, the incentive claims form.
No.
How do I contact someone at PG&E when I have solar
questions?
Contact Us About Solar Energy
We value your feedback. For questions or comments, please contact us bye-mail
about solar at your home or business BusinessCustomerHelp(ci)pge.com.
Mailing .Address
PG&E Solar and Customer Generation - CSI
PO Box 7433
San Francisco, CA 94120
Street Address (for overnight deliveries)
PG&E Solar and Customer Generation - CSI
245 Market St., MC N4G
San Francisco, CA 94105-1814
Phone
Solar Customer Service Center 1-877-742-4112
Solar Hotline 415-973-3480
"PG&E" refers to Pacific Gas and Electric Company, a subsidiary of PG&E Corporation. @ 2008 Pacific Gas and Electric Company. All rights reserved.
http://www.pge.com/my business/ energysavingsrebate1/~J\ar/ csi/csifaqs/
6/1912008
e
~i
i~
ft) _&
c!~
u.u
!lfi
UQ,)
~.Eti
N
"'C
0)
>
'Q)
(,)
0)
c:::
en
O)U-g
'O~'~ +-"
... e ~
a.. a.. E
~ E 0
U]'!O
<(0
0)
>
+:;
c::
0)
(,)
c::
.....
O'lo~COCO
rnl.O~io:tNCD
I'- O'l 0 N.. 1.0. ui
OONO~"'lt
('t)COCOI'-('t)Q
coCO .~CO ft
CO-O'l -N"'I"'"
1'-('<)I'-O'lNCO
WW.....WWN
W ~
C")
~~~ON.....
O('t)I'-.....COQ
CO..tONI.ON
COCO~I.O('t)O)
CO~COI.O""'CD
~. ll'i ci O'l o. N
('t).....I'-NO'l'l"'"
'I"'"
I.O~CO ('t)~
1'-1'-0;J;('t)N
I'-M~ .....r-:
N
"'C
0)
>
'Q)
(,)
0)
c:::
~en en
- -
(,) (,) "'C
,~ 0) 2
e 'e' ~ !!!
a.. a.. E 0
~Eol-
U]'!O
<(0
0)
>
+:;
c::
0)
(,)
c::
EXHIBIT B
E
e
-
c::
o
+:;
co
-
c::
0)
E
::I
(,)
o
"'C
ro
c::
o
:e
"'C"'C
"'C 0)
co ::I
... en
o en
- ,-
OlO)
en c::.o
o :e c::
... co co
.E 3: (,)
"'C 3:- C
0) ,~ ~
C: > >.
~ ~ co
0) ... a.
~ ~ ~
0) C::.E
0) ::I 0)
.0 0).0
~ (ij 5
~ rou
.s 0)
"'Co.
0) en
~ ,5:
~~
::I\;::
~o
0) c::
OlO
co+:;
~ 0)
~o..
a.E
E 8
'ffi ...
u 0
..:
0) 0)
~ E
c:: 0
0)-
(,) ~
c:: (,)
Cl
c::
'0
c::
::I
-
...
o
3:
0)'
'>
~
...
0)
"'C
c::
::I
>.
;;
c::
0)
...
...
::I
(,)
en
c::
o
+:;
co
(,)
.:.=
a.
a.
<(
N
1-9
Exhibit C
Residential Customer Fact Sheet
The sun is waiting to turn your roof into its
own miniature electrical power plant.
Using solar energy to power your home not
only lowers your energy costs over time,
but also generates electricity free of
harmful C02 emissions and other
greenhouse gases. Powering your home
with clean, renewable energy has never
been easier. Going solar also makes
smart financial sense as California Solar
Initiative incentives are available through
your Program Administrator (see box on the
other side for more information). In addition
to an incentive from the California Solar
Initiative, you may be eligible for a federal
tax credit (see Resources section).
CALIFORNIA SOLAR INITIATIVE
California has set a goal to create
3,000 megawatts of new, solar-produced
electricity by 2017. This will help move the
state toward a cleaner energy future and
help to lower the cost of solar installations
for our customers.
The California Public Utilities Commission
created the California Solar Initiative
to provide an incentive to homeowners,
businesses and non-profit agencies
based upon their solar systems' actual or
expected performance. Incentives are
administered by Pacific Gas and Electric
Company, Southern California Edison, and
California Center for Sustainable Energy.
An incentive from the California Solar
Initiative can reduce the cost of installing
solar panels for those customers who want
to generate their own solar energy.
QUALIFICATION
Electric customers of Pacific Gas and
Electric Company (PG&E), Southern
California Edison (SCE), or San Diego Gas &
Electric (SDG&E) are eligible to receive an
incentive from the California Solar Initiative.
ENERGY-EFFICIENCY REQUIREMENTS
GETTING STARTED
All existing residential customers are
required to have an energy-efficiency
audit conducted on their homes. Check
with your local Program Administrator for
further details on how to complete the
energy-efficiency audit.
Going solar is a relatively easy process
and typically your solar installer handles
most of the work. Following these basic
steps will show you how to make the
transition to solar.
Step 1: Complete a quick, free energy audit
The first step is to complete a basic,
energy-efficiency audit. An energy-efficient
home maximizes the value of your solar
installation - saving you even more money.
Your Program Administrator offers a free
energy-efficiency audit to help you assess
your current home energy usage as well as
COST CONSIDERATIONS
There are a variety of fa'ctors that influence
the cost of a photovoltaic (PV) system
including the system's size, labor costs,
system configuration, etc. Most solar
installers can provide a no-obligation
quote based on your home.
'-, >. ';'..<".~
-.. .. .. ,'." .,".. " < ,
r,.,' .." -d_" _,c, .. .': _ '_<".. ", _'. ...... ", '_', _" .. .' .. ....;..:. ,"
" '., .::.. :. '. . -.-,: - . ',_,_, : . ":_~,.:..; ',':::.:. -:C'::"'" '';.,. .." .... "",' ':',.< ...........: C, "," .': ,:.,," .:
1. Individual photovoltaiclPV. cells arec()nn~c!~d to panels. Solar panels
convert sunlight into direct current IOC.eleetricity.
2. Inverter converts direct current {DC. into alternating current (ACHor
electricity in the home.
3. The net meter records the arnountof energy generated through the PVsyS1em.
When you're creating more electricity than you're using,your net mllter will
spin backwards and the excess electricity!s ,senttothe electric grit:!. Typically, .....
this helps to offset the. cost of your electricity usage. atnight
identify those areas in your home that
could become more energy efficient.
The energy-efficiency audit is a
requirement of the California Solar Initiative.
Step 2: Contact and choose an installer
Qualified contractors are your key to
getting the most productive PV system
for your home. Contact an independent
system expert to determine the solar
installation that best meets your energy
needs and budget (see Resources section).
Choose a reputable solar installer by
interviewing at least three potential solar
experts and obtain their bids before making
your selection.
Step 3: The solar installer handles
the applications
Your incentive is based on the expected
performance of your solar installation, so
documentation about your location, solar
system positioning and equipment
specification is required. In most cases,
your solar installer will handle all of the
paperwork by completing and submitting
all the relevant forms to your Program
Administrator and local city agencies
on your behalf.
PROGRAM ADMINISTRATORS
California Center for Sustainable Energv
Attn: CSI Program Administrator
8690 Balboa Avenue, Ste. 100
San Diego, CA 92123
Email: gosolar@energycenter.org
Phone: 1-858-244-1177 or 1-866-SDENERGY
Fax: 1-858-244-1178
Web site: www.gosolar.energycenter.org
/A\
Center for
Sustainable. Energy
CALIFORNIA
Step 4: The solar installer handles the
building and utility provider inspections
Your solar installer will schedule an
appointment with your local building
permit agency to have a certified building
inspector approve the solar installation.
Your solar installer will send the building
inspector's final approval to your Program
Administrator. Following an on-site
inspection and meter installation by your
utility provider's engineers, your new solar
installation will be connected to the electric
grid and clean, renewable solar energy will
now be powering your home.
Step 5: Claim the incentive and tax credit
Your Program Administrator and the
California Solar Initiative rewards the
completion of the solar installation
project. An incentive from the completed
application will be disbursed to the
designated party. Your project may
also be eligible for a federal tax credit
(see Resources section).
Pacific Gas and Electric Company
Attn: California Solar Initiative
P.O. Box 7265
San Francisco, CA 94120-7265
Email: solar@pge.com
Residential Customers: 1-800-933-9555
Solar Hotline: 1-415-973-3480
Web site: www.pge.com/solar
IrI Pacific Gas and
~&l1 Electric Company.
EDUCATION
All Program Administrators offer free
monthly educational opportunities on
related California Solar Initiative topics.
Contact your local Program Administrator
for times, dates and locations.
RESOURCES
. To view a copy of the California Solar
Initiative Program Handbook, visit the
California Public Utility Commission
at www.gosolarcalifornia.ca.gov
. To find reviews of licensed solar
installers as well as those who are
certified by the California Energy
Commission, visit www.findsolar.com
. To find out about available tax credits,
visit Tax Incentives Assistance Project
at www.energytaxincentives.org/
consumerslsolar.php
. For solar industry information, visit
Solar Energy Industries Association
at www.calseia.org
. For information on new solar
home construction, visit at
www.gosolarcalifornia.ca.gov/nshp/
Southern California Edison
Attn: California Solar Initiative
Program Administrator
6042A Northlrwilldale Ave.
Irwindale, CA 91702
Email: CSIGroup@sce.corll
Phone: 1-800-799-4177 (General Questions) or
1-866-584-7436IProgramAdministrationl
Web site: www.sce.com/CSI
.J EoI SORN-
An EDISON IN7'ERNA110NAL- Compony
This fact sheet is intended to be an overview and introduction to the California Solar Initiative. It is not intended to replace the California Solar Initiative Program Handbook.
If there are differences between the Handbook and this fact sheet, the Handbook shall prevail. Please see the most recent version of the Handbook for t.he most up-to-date
information at www.gosolarcalifornia.ca.gov/documents.
@200B Pacific Gas and Electric Company. All rights reserved. SOFS010B
1-11
Business Customer Fact Sheet
Solar-powered businesses can gain a
competitive edge by installing photovoltaics.
The California Public Utilities Commission
(CPUC), through ratepayer funding, offers cash
in~entives for installing on-site photovoltaic
systems in commercial, industrial and
agricultural projects in order to:
Diversify our supply of electricity
· Ease demand on traditional power grids
Reduce or eliminate electric bills
Improve air quality
THE CALIFORNIA SOLAR INITIATIVE (CSI)
The California Solar Initiative is designed
to move the state toward a cleaner energy
future and help lower the cost of solar systems
for California consumers by installing 3,000
megawatts (MW) of new, customer-side
solar photovoltaic (PV) projects by 2017. The
California Public Utilities Commission provides
incentives for all solar installations in existing
structures.
BENEFITS OF GOING SOLAR
Cash incentives combined with tax credits make
going solar affordable, while consumers'
growing interest in supporting 'green'
businesses makes going solar attractive.
Businesses need not worry about property tax
increases once a system is installed-as solar
is exempt from property tax.
CASH INCENTIVES FOR QUALIFYING
CUSTOMERS
To qualify, an installation site must be located in
either the Pacific Gas and Electric Company
(PG&EI, Southern California Edison (SCE), or
San Diego Gas and Electric (SDG&E) service
territories, and must also receive retail electric
distribution. Customers and system owners may
jointly consent to have incentives paid to third-
party contractors, energy service companies
and equipment suppliers.
The Benefits of Going Solar Add Up
[g' Cash incentives
~ Tax credits
[g' Reduced energy bill
The California Solar Initiative pays two types of
incentives to solar customers:
1. Expected Performance-Based Buydown
(EPBB): for solar projects less than 50 kW,
payment is via an up front incentive based
on an estimate of the system's future
performance. Projects eligible for EPBB
may opt-in to PBI prior to receiving their
incentive payment.
2. Performance-Based Incentives (PBI): a
flat cents-per-kWh monthly payment for all
metered output from eligible solar systems
equal to or greater than 50 kilowatts (kW)
over the initial five years of operation.
Current incentive levels may be viewed online at
www.csi-trigger.com. Government and non-profit
entities qualify for higher incentives, as they
are unable to take advantage of the federal tax
credits typically available for solar installations.
To receive help in calculating the incentive for a
specific project, please visit www.csi-epbb.com.
APPLICATION FEE
Application fees are not required for non-
residential systems smaller than 10 kW. The
California Solar Initiative application fee is 1% of
the unadjusted California Solar Initiative EPBB
incentive amount as displayed on the EPBB
calculator. Application fees are rounded to the
nearest dollar amount.
FINANCING
Your solar professional may be able to work with
you on securing financing for large projects.
These arrangements may include partnering
with a third party and utilizing a Power
Purchase Agreement (PPA). This often works
. for government and non-profit agencies that
partner with a for-profit third party to ensure all
available benefits may be realized.
[g' Long-term energy savings
[g' Civic leadership
[g' Increased property value
EQUIPMENT ELIGIBILITY
The California Solar Initiative's incentives focus
on PV systems, but other technologies such
as non-PV solar thermal may be eligible for
incentives if they displace traditional electric
usage and meet the California Solar Initiative
program requirements. See the California
Solar Initiative Handbook for eligibility for all
technologies.
WHAT SYSTEM SIZES ARE ELIGIBLE?
In order to receive a California Solar Initiative
incentive, solar systems must be designed to
offsetthe utility-provided electric load atthe
installation location. Incentives will be paid
to qualifying systems as small as 1 kW and as
large as 1 MW. Those with systems up to 5 MW
may apply, however incentive payments will be
prorated to 1 MW.
HOW DO I APPLY? HOW WILL I RECEIVE
MY INCENTIVE PAYMENT?
Both the EPBB application process and the PBI
application process begin when you submit
an initial reservation request packet. The
process concludes with the respective Program
Administrator's receipt of your complete
incentive claim documentation. The necessary
documentation includes all application forms,
proof of service, worksheets, energy audit
documentation, executed purchase agreements,
and proof of project milestones, including
the fulfillment of all inspection requirements
as described in the California Solar Initiative
Handbook. Once the documentation
requirements are fulfilled, you will receive
your incentive. The California Solar Initiative
Handbook can be viewed online via Program
Administrator Web sites, listed below on the
reverse side.
~ Solar is exempt from property tax
~ Accelerated depreciation (MACRS)
~ Reduced greenhouse gas emissions
NET ENERGY METERING
Installing solar makes you a generator of clean,
renewable electricity. It also enables you to
participate in your utility's Net Energy Metering
(NEM) program. This program provides credit on
your bill for your unused generated electricity.
Additional benefits for installing solar systems
may include federal tax credits, property tax
exemptions for the solar equipment, Renewable
Energy Credits (RECs), and improved property
values.
TRAINING AND WORKSHOPS
All of the California Solar Initiative Program
Administrators provide free training at least
once per month on topics related to the
California Solar Initiative, installation practices,
the application process, and a whole host of
other workshops and training. Contact your
local Program Administrator for times, dates,
and locations.
WARRANTY REQUIREMENTS
All systems must have a minimum 10-year
warranty on PV modules (panels) and inverters.
Meters must have a one-year warranty. This
warranty can be met in conjunction with the
manufacturers' warranties as well as the
installer's warranty.
ENERGY EFFICIENCY
Solar works best when used in conjunction
with appropriate energy efficiency measures.
All project sites must have an energy efficiency
audit performed and included with the requisite
Reservation Request packets.
PROGRAM ADMiNISTRATORS ','. ".
,.- .
'''''~-< , - "
. California Center for Sustaiilllble En.l'gy
Attn: CSI P.rogr;am Ma.nager . . . .
8690 Balboa Avimu,; Ste.1QQ.
Sari Diego, CA 92123',:/., '
, Ematl: gosalar@enerllYCBllfer.org .... ..'"
. Phone:851f;.244-1t17.t866FSDENERGY'
Fax: 858-244~tl18 .' .... .'
Web site: www.goso/ar.enei'gycenter.org .
~
Center for ...... .. .. ....
Sustainabre Energy
. CALIFORNIA
METERING AND MONITORING
For EPBB installations, a meter with accuracy
of :t5% is required. The :t5% meter may be
inverter integrated. A performance monitoring
and reporting service (PMRS) may also be
required. All PBI systems need to be equipped
with a stand-alone interval data meter accurate
to :t2% as well as a PMRS. The California
Energy Commission's list of qualifying meters
and performance monitoring providers can be
found online at www.energy.ca.gov.
STREAMLINING THE PROCESS FOR
CALIFORNIA SOLAR INITIATIVE
PARTICIPANTS
The California Solar Initiative Program
Administrators are ready to help California
Solar Initiative participants make informed
decisions about solar and PV. Help includes
education about available solar options,
directions to third-party resources, calculation
and information tools, and access to a California
Solar Initiative eligible vendor database. To
learn more aboutthe California Solar Initiative,
please visit www.gosolarcalifornia.ca.gov.
RESOURCES
· To obtain a copy ofthe California Solar
Initiative Program Handbook or to receive
further California Solar Initiative program
details, visit www.GoSolarCalifornia.ca.g~v.
· The EPBB Calculator can be found at
www.csi-epbb.comto assist you with a
preliminary evaluation of a site's potential
for solar.
To view a list of participating installers,
please visit the CEC Web site at
www.consumerenergycenter.org/erprebate/
database/fulllist.php.
y.=;.1":'
.. . ,'.,-....;'
Pacific Gas&EJectrictompany\C
Attn: Ca.lifornia Solar Initiative 'V
P.O. Box7265 . ... ........ ..... ......... .,
SanFranciscQ,. CA 94120-7265 " '0'
Email: solar@pge.cOIll ........ ..... .,,: \,U
Business Customers:80IF468-'4743
Solar F1otline:415-973-3480 i':'>'
Web site: www.pge.com/so/lir
\<~"'-'
--'1";
- ,,,", "',"
~.".
~~~
Pacific Gas and ...
Electric Company.
;..<._.......I....~I~ORN.
A..BDlSON1N'IEIINA7fONAL- Camp..,
This fact sheet is intended to be an overview and introduction to the California Solar Initiative (CSII.lt is not intended to replace the CSI Program Handbook. If there are
differences between the Handbook and this fact sheet, the Handbook shall prevail. Please see the most recent version of the Handbook for the most up-to-date information.
1-13
Installer Fact Sheet
The California Solar Initiative (CSI) offers cash
incentives for the installation of on-site fixed
or tracking photovoltaic (PV) systems. PV
installers play an important role in the solar
application process and, in most cases, will
submit the required paperwork and apply for
permits on behalf of residential and business
customers who purchase and install PV systems.
PROGRAM OVERVIEW
The California Solar Initiative is designed to
move the state toward a cleaner energy future
and help lower the cost of solar systems for
California consumers through the installation of
3,000 megawatts (MW) of new, customer-sided
solar PV and non-PV projects by 2017.
ELIGIBLE PARTICIPANTS
All residential, commercial, government, and
non-profit electric customers of Pacific Gas
and Electric (PG&E), Southern California Edison
(SCE), and San Diego Gas & Electric (SDG&E)
are eligible to apply for incentives. The CSI
program pays incentives for residential solar
installations on existing structures, as well as
new and existing non-residential structures.
New residential construction projects are
funded through a different program, the
California Energy Commission's (CEC) New
Solar Homes Partnership Program.
INCENTIVE STRUCTURE
The CSI pays two types of incentives to solar
customers:
. Expected performance-based buydown
(EPBB) - For solar projects less than
50 kW, an up-front incentive based on an
estimate of the system's future performance
is provided. You can calculate the EPBB
incentive by entering the system specifications
into the online EPBB incentive calculator at
www.csi-epbb.com.
. Performance-based incentives (PBI) -
A flat cents-per-kWh monthly payment for
all metered output (for the initial five years of
operation) from eligible solar systems equal to
or greater than 50 kW. Any project size may
opt in to receive this type of incentive.
As illustrated in Table 1, incentive levels will be
automatically reduced over the duration of the
program based on the volume of megawatts of
solar reservations issued. Projects are counted
toward the megawatts trigger once they are
deemed eligible, have paid an application fee
(if applicable), and have received a confirmed
reservation. Incentive levels may vary by
customer class and Program Administrator*
service territory. Current incentive levels may
be viewed online at www.csi-trigger.com.
ELIGIBLE TECHNOLOGIES
PV systems up to 5 MW in capacity are eligible,
although incentives are only paid for the first
MW of capacity. The CSI offers incentives for
PV systems, but other technologies such as
non-PV solar thermal may be eligible for
incentives if they displace traditional electric
usage and meet CSI program requirements.
Consultthe CSI Handbook to determine
eligibility of technologies.
WARRANTY REQUIREMENTS
All systems must have a minimum 10-year
warranty that protects against system or
component breakdown. Meters must have a
one-year warranty to protect against defective
workmanship, system or component breakdown,
or degradation in electrical output of more than
15 percent of their originally rated electrical
output during the warranty period. For meters
that are integrated into the inverter, the meter
warranty period must be 10 years.
ENERGY EFFICIENCY REQUIREMENTS
All existing residential and commercial
customers will be required to have an energy
efficiency audit of their existing home or
building. Acceptable audit protocols consist
of an online or telephone audit provided by
the customer's utility. Proof of a completed
energy efficiency audit must be submitted to
the utility with the CSI application. Consult the
CSI Handbook for further details concerning the
energy efficiency audit program requirement.
INSTALLER I EQUIPMENT SUPPLIER
REQUIREMENTS
To participate in the CSI program, eligible
companies that install system equipment must
be listed with the Program Administrator.
The Program Administrator will requestthe
following information:
. Business name, address, phone, fax and
e-mail address
. Owner or principal contact
. Business license number (if applicable)
. Contractor license number
. Proof of good standing on the records of the
California Secretary of State as required for
corporate and limited liability entities
. Reseller's license number (if applicable)
This information must be submitted to the
Program Administrator before a company can
become eligible to install systems under the
CSI Program, and must be updated annually.
The information must be received by the
Program Administrator before the Applicant
can receive any reservation confirmation
or incentive payment, and must be updated
annually by March 31.
Companies that sell system equipment must
be certified by the CEC and must furnish the
same information as listed above to the CEC
(on their form NSHP-4). This information must
be submitted to the CEC before a company
Table 1 - EPBB and PBI Payment Amounts by Step
EPBB Payments PBI Payments
(per watt) (per kWh)
MW Statewide GOy't/ GOy't/
Step MW in Step Residential Commercial Nonprofit Residential Commercial Nonprofit
1 50 nla nla nla nla nla nla
2 70 $ 2.50 $ 2.50 $ 3.25 $ 0.39 $ 0.39 $ 0.50
3 100 $ 2.20 $ 2.20 $ 2.95 $ 0.34 $ 0.34 $ 0.46
4 130 $ 1.90 $ 1.90 $ 2.65 $ 0.26 $ 0.26 $ 0.37
5 160 $ 1.55 $ 1.55 $ 2.30 $ 0.22 $ 0.22 $ 0.32
6 190 $ 1.10 $ 1.10 $ 1.85 $ 0.15 $ 0.15 $ 0.26
7 215 $ 0.65 $ 0.65 $ 1.40 $ 0.09 $ 0.09 $ 0.19
8 250 $ 0.35 $ 0.35 $ 1.10 $ 0.05 $ 0.05 $ 0.15
9 285 $ 0.25 $ 0.25 $ 0.90 $ 0.03 $ 0.03 $ 0.12
10 350 $ 0.20 $ 0.20 $ 0.70 $ 0.03 $ 0.03 $ 0.10
can become eligible to participate in the CSI
program and must be updated annually by
March 31.
LICENSING REQUIREMENTS
Unless self-installed by the owner, all systems
must be installed by appropriately licensed
California contractors in accordance with
rules and regulations adopted by the State of
California Contractors State licensing Board
(CSlB). Installation contractors must have an
active A, B or C-l0 license, or a C-46 license
for photovoltaic (PV) systems. Although not
required, installation contractors are
encouraged to become certified by the North
American Board of Certified Energy
Practitioners (NABCEP). For additional
information on NABCEP, visit www.nabcep.org.
METERING REQUIREMENTS
The CSI program requires accurate solar
production meters for all projects that receive
CSI program incentives. Accurate measurement
of solar output is of paramount importance to
ensure optimum value for both solar owners
and ratepayers.
. For systems receiving EPBB incentives, a
basic meter with accuracy of:t5 percent is
required.
. For any system receiving PBI incentives,
an interval data meter with accuracy of
:t2 percent is required.
Performance monitoring and reporting may also
be required as specified in the CSI Handbook.
The CEC's list of qualifying performance
monitoring system providers can be found at
www.energy.ca.gov.
NET ENERGY METERING
Incentives can offset up to 100% of onsite
electrical load. Net energy metering allows
*PROGRAM ADMINISTRATORS
California Center for Sustainable Enel'OV
Attn: CSI Program Manager
8690 Balboa Avenue, Ste.100
San Diego, CA 92123
Email: gosolar@energycenter.org
Phone: 858-244-1177 (866)-SDENERGY
Fax: 858-244-1178
Website: www.gosolar.energycenter.org
,A\
Center for
Sustainable Energy
CALIFORNIA
for the flow of electricity both to and from the
customer through a single, bi-directional meter.
With net energy metering, during times when
the customer's generation exceeds their use,
electricity from the customer is sent to the
utility, which offsets electricity consumed at
another time. In effect, the customer is using
billing credits for the excess generation to
offset electricity purchased at other times.
INTERCONNECTION
PV systems must be permanently interconnected
to the electrical distribution grid of the
utility providing service to the customer.
Portable systems are not eligible. The system
interconnection must comply with applicable
electrical codes and utility interconnection
requirements. Consultthe CSI Handbook for
further details concerning interconnection,
including insurance requirements. Proof of
interconnection and parallel operation is
required prior to receiving an incentive payment.
INCENTIVE APPLICATION PROCESS
A CSI Statewide Database has been created to
streamline the application process and eliminate
the need to manually complete the incentive
application paperwork. While the application is
being completed online, the forms can be printed
and submitted along with other documentation
required to complete the application process.
The CSI Statewide Database allows installers
to manage all oftheir projects from a single
source while obtaining 'real-time' status
updates on individual solar projects. Contact
the applicable Program Administrator or visit
www.gosolarcalifornia.ca .gov.
The CSI application fee is 1 percent of the
unadjusted requested CSI program incentive
amount. Application fees are rounded to the .
nearest dollar amount. However, application
Pacific Gas & Electric Company
Attn: California Solar Initiative
P.O. Box 7265
San Francisco, CA 94120-7265
Email: solar@pge.com
Residential Customers: 800-933-9555
Solar Hotline: 415-973-3480
Website: www.pge.com/solar
.. Pacific Gas and
r:m~~ Electric Company. .
fees are not required for residential projects or
systems that are smaller than 10 kW.
After the customer selects the solar installer and
chooses either the EPBB or PBI payment option,
the installer submits a reservation request
application via the CSI Statewide Database, along
with a hard copy ofthe application and all required
incentive claim documentation. The incentive
claim documentation includes, but is not limited
to, all application forms, proof of utility service,
worksheets, energy efficiency audit documentation,
interconnection agreement, executed purchase
agreements, and proof of project milestones,
including the fulfillment of all inspection
requirements (if required) as described in the CSI
Handbook. Once this documentation is received,
and the system passes inspection, the Program
Administrator will issue the incentive payment.
TRAINING
CSI Program Administrators hold monthly training
classes to explain the application process,
shading methodology, the online application
database, and other program information. See
each Program Administrator's website to find the
next training opportunity.
RESOURCES
. To obtain a copy of the CSI Program Handbook
or to receive further CSI program details,
visit www.GoSolarCalifornia.ca.gov.
. The EPBB Calculator can be found at
www.csi-epbb.comto assist you with a
preliminary evaluation of a site's potential
for solar.
. To view a list of participating installers, visit
the CEC website at www.consumerenergy
ce nter. org/erprebate/database/fulllist.php.
. For information about the CEC's New Solar
Homes Partnership Program, visit
www.gosolarca/ifornia.ca. gov/nshp;'
Southern California Edison
Attn: California Solar Initiative
Program Administrator
6042A North Irwindale Ave.
Irwindale, CA 91702
Email: CSIGroup@sce.com
Phone: 800-799-4117 (General Questionsl
866-584-7436 {Program Administration}
Website: www.sce.com/CSI
.-J rnRfsON.
An EDISON INTERNATIONAL- Campmr
This fact sheet is intended to be an overview and introduction to the California Solar Initiative (CS!). It is not intended to replace the CSI Program Handbook. If there are
differences between the Handbook and this fact sheet, the Handbook shall prevail. Please see the most recent version of the Handbook for the most up-to-date information.
V2-020B
1-15