Wednesday, November 08, 2006

How Cash back for Solar works in California.

If you are a Californian, there are incentives for you to turn your home in to a Solar Generator! Aka self sustained house. California State initiative, works in a wonderful ways to turn your interest toward converting your house in to a solar power house.
I urge all the states that could benefit from Solar energy to adopt a similar initiatives. Let's go beyond the American Borders, let's introduce such measures all over the world.

The California Solar Initiative Offers:
  • Photovoltaic incentives starting at $2.50 per watt for systems up to one megawatt in size.

  • Funds for solar installations for existing and new low-income and affordable housing.

  • A pay-for-performance incentive structure to reward high-performing solar projects.

The California Solar Initiative will be coordinated with the state's energy efficiency, "smart" metering, and building standards programs at the Public Utilities Commission and Energy Commission, ensuring that the state is using its energy resources wisely.

The above is true if you act before the year ends. There is a new way based on Public Utilities Commission (PUC) of California that will change the incentive payment criteria.
  • Starting January 1, 2007, incentives for all solar energy systems greater than 100 kilowatts in size will be paid monthly based on the actual energy produced for a period of five years. This incentive is called Performance Based Incentives, or PBI.

  • Incentives for all systems less than 100 kilowatts will initially be paid a one-time, up-front incentive based on expected system performance. Expected performance will be calculated based on equipment ratings and installation factors, such as geographic location, tilt, and shading. This incentive structure is called Expected Performance-Based Buydown, or EPBB.

  • Starting in 2010, incentives for all systems greater than 30 kilowatts in size will be paid based on actual energy produced.
CPUC Administration of the California Solar Initiative

On March 2, 2006, the CPUC opened a proceeding to develop rules and procedures for the California Solar Initiative and to continue consideration of policies for the development of cost-effective, clean and reliable distributed generation (DG). On August 21, 2006, the Governor signed Senate Bill 1 (SB1), which directs the CPUC and the Energy Commission to implement the CSI program consistent with specific requirements and budget limits set forth in the legislation.

The PUC has a rulemaking in progress to reconcile its decisions with SB1, and it also continues to hold public workshops to continue designing program elements. Contact the CPUC to learn how to provide your input in these decisions.

Current incentives provide an upfront, capacity-based payment for a new system. The CSI incentive system will change in 2007 when it moves to performance-based payments. In its August 24, 2006, decision, the CPUC shifted the program from volume-based to performance-based incentives and clarified many elements of the program's design and administration.

There is also a FAQ page that will answer most of your questions.

Links;

Cash Back For Solar

Cash Back for Solar FAQ

1 comment:

Claude said...

This is a wonderful initiative and I believe more states (and countries) will head in a similar direction.

Solar panels are getting smaller, more efficient and much more affordable every year so it's only reasonnable to think many more people, especially home owners, will give a second look to this "free energy" simply asking to be "converted"!