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California Solar Initiative

The California Solar Initiative, launched in 2006, aims to promote the adoption of solar energy in California through various programs targeting residential, commercial, industrial, and agricultural buildings. It provides incentives, funding, and research opportunities to increase the use of photovoltaics and other solar-related technologies. The initiative also focuses on energy efficiency and affordability, particularly for low-income and affordable housing projects.

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California Solar Initiative

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  1. California Solar Initiative Dian M. Grueneich, Commissioner California Public Utilities Commission March 30, 2006

  2. New California Solar Initiative • CPUC Program • Existing residential buildings • Single-family homes • Low-income • Multi-family apartments • All commercial buildings • Schools • State buildings • All industrial facilities • Warehouses • Manufacturing • All agricultural facilities

  3. New California Solar Initiative • CEC Program • New residential buildings only • Single-family homes • Low-income • Multi-family apartments • CEC will specifically target and work with the builder/developer community

  4. Transition Year: 2006 • Funding for new Solar Initiative begins • Program funding will continue through 2016 (11 years) • Administration initially through existing programs (SGIP and ERP) • Agencies will work on: • Establishing new program administrative structure, initially for residential retrofit market • Payment for system performance, based on output, not capacity • Marketing and outreach plans

  5. Solar Initiative Funding

  6. Installations and Rebate Levels (CPUC program only)

  7. Eligible Technologies • Photovoltaics on customer side of meter • Between 1 kW and 5 MW in size [Incentives for solar heating and cooling and concentrating solar (solar thermal electric) will be developed in 2006]

  8. Energy Efficiency Connection • Energy efficiency audits required to receive solar incentive • New construction applications require participation in utility energy efficiency program • Advanced meters and time-varying rates will be provided for solar installations

  9. Affordable and Low-Income Housing • Agencies will set aside 10% of funding for low-income and affordable housing projects • Both single-family homes and multi-family structures will be eligible to participate • Both agencies will consider setting a different incentive level, up to 25% higher, for these installations • Both agencies will explore the option of offering low-cost financing

  10. Research, Development and Demonstration Activities • The program includes an additional amount of up to 5 percent of the annual budget for potential research, development, and demonstration activities, with emphasis on the demonstration of solar and solar-related technologies.

  11. Existing Solar Programs CPUC: Self-Generation Incentive Program (SGIP) • Non-residential systems only, 30 kW and above • ~$50 million per year since 2001 • 50 MW solar capacity installed; 62 MW in progress

  12. Existing Solar Programs (continued) • Primarily residential systems • ~$230 million spent since 1998 • 62 MW solar installed capacity CEC: Emerging Renewables Program (ERP)

  13. Completed and Next Steps √CPUC opened new proceeding to implement CSI (March 2) √ Staff workshop collected proposals regarding solar performance-based incentives (March 16) √ PV incentives reduced from $2.80/watt to $2.50/watt (March 21) √ Prehearing conference addressed 2006 schedule (March 23) • Staff recommendations (late April 2006) • PBI • Non-PV incentives • Metering specifications • CPUC votes on recommendations (Summer 2006)

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