Overview of Solar Incentive Programs

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Overview of Solar Incentive Programs

Terry ClaphamBen Airth

Katrina PerezKatrina Phruksukarn

04/12/23

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Agenda• History of Solar Incentives Programs in

CA• Current Solar Incentive Programs

• California Solar Initiative (CSI)• Residential• Non-Residential

• Solar Water Heating Programs• Pilot Program• CSI Thermal

• Questions

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Historic Solar Incentive Programs• Emerging Renewables Program (ERP)

• Enabling Legislation –AB 1890 and SB90 (1997) • CEC Program launched in 1998• Grid connected renewable projects up to 30kW

• Self Generation Incentive Program (SGIP)• Enabling Legislation – AB 970 (2000)• CPUC Program launched in 2001• Grid connected renewable projects 30kW and up

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PV Installations in SDG&E Territory

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Go Solar California!

• Million Solar Roofs Bill (SB1)• Signed by Gov. Schwarzenegger on

September 21, 2006• Ended solar incentives through the

ERP and SGIP• Launched the California Solar

Initiative (CSI) and New Solar Homes Partnership (NSHP).

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California Solar Initiative (CSI):

Overview of Residential Solar Market

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California Solar Initiative (CSI)• As part of the “Go Solar California”

campaign, the California Solar Initiative (CSI) was instituted to help facilitate the installation of 1,750 MW statewide and create a sustainable solar industry

• Of the 1,750 MW, CCSE is due to install 180 MW by end of 2016

• 59 of which will come from the residential sector (roughly 15,000 average size systems)

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CSI Rebates• Rebates are offered on a declining scale• Current CSI Incentive (upfront): $1.55/Watt

• Next rebate amount is $1.10/Watt

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CSI Rebates

•Offsets roughly 15% to 20% of the total installed costs•Rebates will decline as more solar gets installed

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Other Incentives

• 30% Federal Tax Credit – can be taken after CSI Incentive is deducted

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CSI Application Process• Residential and Small Non-

Residential projects (< 10 kW) • Two Step Application Process

• Non-Residential projects (> 10 kW) • Three Step Application Process

• For more information, please visit www.energycenter.org/solar

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CSI Progress toward 1,750 MW Installed

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CCSE

PG&E

SCE

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CSI Applications by Month: Residential

2020

CSI County Statistics: Residential

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2222

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CSI Statewide City Statistics: Residential

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2525

25

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Installed Cost per Watt

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$10.65

$9.17

$9.77

$8.94

$8.14

$8.55$9.12

$9.12

$8.41

$9.84

$9.41

$0

$2

$4

$6

$8

$10

$12

2001 2002 2003 2004 2005 2006 2007 2008 2009

Year Operational

Cost

per

Wat

t (2

008$

) '

SGIP

CSI LargeCom

CSI Res &Small Com

Source: Itron, Preliminary Program Impacts Results Report, June 2009.

Historical Cost Per Watt in CPUC Programs

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Current Cost Per Watt by System Size: Residential

• PV costs range from $8.50 to $11.50 per watt fully installed… before taking rebates or tax credits. The average cost of all residential systems to date is $9.28 per watt.

Current $/Watt by Residential System Size in California

Systems 1 kW – 5 kW = $9.71/WattSystems 5 kW – 10 kW = $9.12/WattSystems 10 kW and up = $9.03/Watt

Average Residential System Size = $9.28/Watt

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Thank You!

Ben AirthResidential Solar Program

ManagerCalifornia Solar Initiative

[email protected]

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California Solar Initiative:

Non-Residential Solar Incentive

Program

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Non-Residential Incentives Available

•30% Federal Income Tax Credit•Accelerated Depreciation (5

years – MACRS)•PV Exempt from Property Tax•CA Solar Initiative

Incentive

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CSI Non-Residential Program Eligibility

Non-residential projects = Commercial (including Industrial & Agricultural), Government, Non-profit and Public Entities

System size must be between 1kW and 1MW

Retrofit or New Construction Alternative System Ownership (Power

Purchase Agreements) allowed

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Application Process Overview• 2-Step Application Process

• Non-Residential Systems < 10kW• 18 month reservation• No application fee

• 3-Step Application Process• Non-Residential Systems >10kW• 18 month reservation• Application Fee Required based on

System Size

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Application Fee Amounts

Standardized amount based on system size

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Financing Options – PPA & Leasing Agreements

• Power Purchase Agreement• 3rd party finances solar system and sells the energy to site for

a pre-determined price• No upfront cost

• Solar Leasing Agreement• Pay for ownership of solar system over time with the intention

of purchasing the system at the end of the lease term• Minimal upfront cost

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CSI Incentive Payments – 2 types

• Upfront Incentive• Expected Performance Based

Buydown (EPBB)• Paid after project completion• Current Incentives

• $1.55 / watt for Residential & Commercial

• $2.30 / watt for Gov’t , Non-Profit entities

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CSI Incentive Payments – 2 types

• Actual Performance• Performance Based Incentive (PBI)• Paid in 60 monthly installments for

kWh produced• Current Incentives

• $0.22 / kWh for Residential and Commercial

• $0.32 / kWh for Gov’t, Non-Profit entities

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For real time CSI incentive information visit:

www.csi-trigger.com

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CSI Applications by Month: Non-Residential

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CSI Statewide City Statistics:

Non-Residential

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For more information visit: www.californiasolarstatistics.ca.gov

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The Future of CSI: Paperless Applications

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Why Paperless?

Reduce Carbon Footprint of the Program• PDF submittal means less documents to be printed• Lowers fuel consumption by eliminating transportation

of documents from one location to another

More Efficient Application = Reduced Cost• Single location for most current forms• Eliminate postage cost and other Admin cost for

preparing mail• No more duplicate data entry from Excel Forms

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Future Paperless Submittal Process

APPLICANT

PA Begins Review Process

1. Fill out CSI Forms using PowerClerk

2. Prepare Supporting Documentation

3. Email or attach documentation to PC

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PowerClerk Data Upload Feature

Purpose of the feature• Allows external software programs to upload

application data to populate CSI Reservation Request Forms

• Streamlines process & eliminates duplicate entry of data by Applicant and CSI Administrators

**Recommended for large installers whose custom tools auto-populate excel rebate and interconnection paperwork

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Thank you!

Katrina Perez CSI Non-Res Program Manager

[email protected]

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Solar Water Heating Incentive Programs

Katrina Phruksukarn

04/12/23

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Outline• What is Solar Water Heating?• Solar Water Heating Pilot Program

• Eligibility• Incentives

• CSI-Thermal Program• Expected timeline• Proposed elements

• Economics of Solar Water Heating

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What is Solar Water Heating?• Solar Assist or Solar Pre-heat• Always keep the existing heater

as backup to solar• Great way to conserve energy,

reduce your utility bill, increase the value of your home, and reduce Global Warming!

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How does it work?

First, understand conventional water heaters:

• Conventional water heaters maintain hot water in the storage tank around 120-140 degrees F.

• When the water temperature drops below that, your electricity or natural gas will kick on to heat the water to the appropriate temperature.

• This happens while you are at work all day, even though there is no demand for hot water

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Basic SWH Design

1. Sun heats water or a heat transfer fluid in a solar collector on the roof

2. Solar heated water is stored in solar tank

3. Solar heated water circulates between solar tank and back up water heater

4. Back up water heater boosts the temperature of the water, if needed

5. Use solar heated water !

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Source: Occidental Power

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What is the Solar Water Heating Pilot Program?

• The Solar Water Heating Pilot Program, part of the larger California Solar Initiative, was designed to gather information on the market, technologies and financials of SWH in order to expand to a statewide program.• Total SWHPP budget is $1.5 million for incentives• Program rolled out on July 2, 2007 and will run

through Dec. 31, 2009• CSI-Thermal Program was proposed July 15, 2009-

statewide incentive program

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SWH Pilot Program - Eligibility• Eligible:

• SDG&E electric customers only, nowhere else in the state

• Natural Gas, Electric, and Propane users are all eligible

• New construction and retrofit projects

• Not Eligible:• Pools and Spas are not eligible• Other thermal technologies, such as space heating

and cooling, are not eligible• Replacement of single components is not eligible

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SWH Pilot Program-Requirements

• Eligible Contractor• SRCC Certified System• Two step application process• City or County Permit• SWHPP Inspection

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Incentives - Residential• Maximum Incentive: $1,500

• Solar Orientation Factor (SOF) – 0.9 to 1.0 based on tilt and orientation

• SRCC Annual Savings of the OG-300 System (System Rating)

• Incentive Calculation:• Natural Gas Offset: Maximum Incentive x (SOF) x

(System Rating/150 therms)= Incentive Amount• Electric Offset: Maximum Incentive x (SOF) x

(System Rating/3000 kWh)= Incentive Amount

• Example: • Natural Gas: $1,500 x 1.0 x (125/150)= $1,250• Electric: $1,500 x 1.0 x (2500/3000)= $1,250

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Incentives – Commercial• Maximum Incentive: $75,000

• Solar Orientation Factor (SOF) – 0.9 to 1.0 based on tilt and orientation

• SRCC Annual Savings of the OG-100 Collector- thousands of Btu/day

• Incentive Calculation: • Closed Loop: $20 x (SOF) x (System Rating) = Incentive

Amount• Open Loop : $15 x (SOF) x (System Rating) = Incentive

Amount

• Example:• Closed Loop: $20 x 1.0 x 35 = $700 per collector• Open Loop : $15 x 1.0 x 35 = $525 per collector

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Additional Incentives• Federal Tax Credit – 30% of cost

(post-incentive) (No cap)

• Increased property value but exempt from increase property tax

• Protection against future rate increases

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Economics of SWH

• “One of the most cost-effective ways to include renewable technologies into a building is by incorporating solar hot water.”

–U.S. Department of Energy website

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Economics of SWH• Natural Gas DisplacementInstalled Cost $ 6,500

Incentive $ 1,250

Investment Tax Credit (30%) $ 1,575

Net Cost $ 3,675

Estimated Annual Performance 120

Utility Rate Escalation 7%

Years

1 2 3 14 15 25 TOTAL

Therm Cost $ 1.36 $ 1.46 $ 1.56 $ 3.28 $ 3.51 $ 6.90

Energy Savings 120 120 120 120 120 120 3000

Cost Savings $ 163.20 $ 174.62 $ 186.85 $ 393.29 $ 420.82 $ 827.81 $ 10,322.24

Cumulative Savings $ 163.20 $ 337.82 $ 524.67 $ 3,680.24 $ 4,101.06 $ 10,322.24

Lbs. CO2 Saved 35,159

Investment=$3,675

Savings=$10,322.24

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Economics of SWH• Electricity Displacement

Installed Cost $ 6,500

Incentive $ 1,250

Investment Tax Credit (30%) $ 1,575

Net Cost $ 3,675 Estimated Annual Performance 2400Utility Rate Escalation 5%

Years1 2 3 8 9 25 TOTAL

kWh Cost $ 0.15 $ 0.16 $ 0.17 $ 0.21 $ 0.22 $ 0.48 Energy Savings 2400 2400 2400 2400 2400 2400 60000

Cost Savings $ 360.00 $ 378.00 $ 396.90 $ 506.56 $ 531.88 $ 1,161.04 $ 17,181.76

Cumulative Savings $ 360.00 $ 738.00 $ 1,134.90 $ 3,437.68 $ 3,969.56 $ 17,181.76

Lbs. CO2 Saved 23,993

Investment=$3,675

Savings=$17,181.76

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Proposed CSI-Thermal Program• AB 1470: $250M for 200,000 systems

by 2017• CA Public Utilities Commission

released the CSI-Thermal Program proposal on July 15, 2009

• Public Review period through August 24, 2009

• Program Goals- displace 585M therms and 150MW by the end of 2017

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Expected Timeline

• A CPUC Decision is expected to be released in November 2009

• 30 day public review period• Final vote on program

implementation in December 2009• Program start date of January 1,

2010

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Proposed Incentives-Natural Gas• Maximum Incentives:

• Residential: $1,875 • Commercial: $150,000

• 4 decreasing steps (triggered by installed capacity)• Step one: $12.82/therm• Step two: $10.26/therm• Step three: $7.69/therm• Step four: $5.13/therm

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Proposed Incentives-Electric

• Maximum Incentive: • Residential: $1,250• Commercial: $100,000

• One static step:• .37/ kWh

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Proposed Eligible Technology

• SWH systems that displace electricity or natural gas (not propane)- SRCC certified

• Non-water heating solar thermal technologies that displace electricity or natural gas

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Next Steps

• Attend a Home Owners SWH Basics workshop• Next one: October 8th, 6-8pm

• Attend a Contractor and Self Installer Training• Next one: October 19th, 9am-4pm

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Solar Water Heating Pilot Program Contact Information

• Katrina Phruksukarn– Program Manager• [email protected]• 858.244.7290

• Eligible Contractors• http://www.swh.energycenter.org

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Questions?

Overview of Solar Incentive Programs

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