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Background on the California Solar Initiative (CSI)
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 - moving the state toward a cleaner
energy future and helping lower the cost of solar systems for
consumers. The California Public Utilities Commission, through its
California Solar Initiative (CSI), is providing over $2 billion in
incentives over the next decade for existing residential homes and
existing and new commercial, industrial, and agricultural properties.
Also, the California Energy Commission is managing a 10-year, $350
million program to encourage solar in new home construction, known as
the New Solar Homes Partnership (NSHP). Please visit their website for NSHP information.
CSI Incentives (Rebate)
CSI incentives differ by customer segment and system size, and are
intended to encourage high performing systems. CSI incentives are
disbursed based on pre-determined rates until market demand pushes the
program to the next step, in which case incentives are reduced, as
illustrated below in the less than 100kW system size chart. For
instance, once 70 MW of solar energy systems are installed in Step 2,
incentives will drop to those applicable in Step 3. Once another 100 MW
of solar energy systems are installed in Step 3, incentives will drop
to Step 4. These allocations have been further allocated by utility
service area and residential versus non-residential installations.
Small System Incentive Schedule
(per CEC-AC watt; initially for systems less than 100kW)
| Step |
Megawatts Per Step |
Residential |
Commercial |
Non-Taxable |
| 1 |
50 |
n/a |
n/a |
n/a |
| 2 |
70 |
$2.50 |
$2.50 |
$3.25 |
| 3 |
100 |
$2.20 |
$2.20 |
$2.95 |
| 4 |
130 |
$1.90 |
$1.90 |
$2.65 |
| 5 |
160 |
$1.55 |
$1.55 |
$2.30 |
| 6 |
190 |
$1.10 |
$1.10 |
$1.85 |
| 7 |
215 |
$0.65 |
$0.65 |
$1.40 |
| 8 |
250 |
$0.35 |
$0.35 |
$1.10 |
| 9 |
285 |
$0.25 |
$0.25 |
$0.90 |
| 10 |
350 |
$0.20 |
$0.20 |
$0.70 |
View the State Rebate Trigger Point Tracker to check which step your utility is in.
For information on systems larger than 100 kW, click here.
The incentives are determined according to the system size, as follows:
- Expected Performance Based Buydown (EPBB) Incentives: For
systems less than 100 kW, the incentive amount is will be paid a
one-time incentive payment.
- Performance Based Incentives (PBI): System larger than
100 kW will be paid 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 Is the Incentive?
Incentives are based upon the size and characteristics of the
installation and your customer classification (i.e., an increased
incentive level is available to Government and Non-Profit
Organizations).
- Systems less than 100 kW are eligible for the Expected
Performance Based Buydown (EPBB) incentive. Or, you can elect to
receive Performance Based Incentive payments in lieu of the EPBB
incentive.
- Homeowners and businesses - maximum incentive of $2.50 per Watt
- Government and Non-profit Organizations - maximum incentive of $2.65 per Watt
- Systems that are 100 kW or greater are eligible for a Performance Based Incentive (PBI) payments.
- Homeowners and business - Receive a monthly rebate check of 39 cents per kWh produced over a period of five years
- Government and Non-profit Organizations - Receive a
monthly rebate check of 50 cents per kWh produced over a period of five
years
Incentive amounts will decline according to schedules set by each program, declining to zero by 2017.
Go Solar California Incentive Program
PG&E CSI
Page
SCE
CSI Page
Federal Tax Credit
The Federal Energy Policy Act of 2005 provides for a federal tax credit
of 30 percent of total system cost of a solar system, up to a maximum
of $2000, per system. The credit is available to homeowners for solar
systems placed in service from January 1, 2006 through December 31,
2008.
Details on new legislation which would significantly increase the federal tax credit here.
NEW (9/24/07) Action Alert from Solar Nation
Vote Solar - support solar legislation.
Currently, there is no State tax credit available for solar systems.
For builders and manufacturers, there is an energy efficiency tax
credit available under the Federal Energy Policy Act of 2005. For more
information, see the Tax Incentives Assistance Project (TIAP).
Other links:
ENERGY
STAR® Federal Tax Credits for Energy Efficiency
Database of State
Incentives for Renewables & Efficiency |