California Public Utilities Commission November 9, 2010
Damon Franz, Energy Division [email protected]
Working to Transform the Market for Solar PV and Thermal
Click to Edit California’s Distributed Solar Energy Program
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What is the CPUC?
• Headquartered in San Francisco • Regulates privately owned (i.e. investor owned)
telecommunications, electric, natural gas, water, railroad, rail and other transportation companies.
• Ensures safe, reliable utility service at reasonable rates, protecting against fraud, and promoting the health of California’s utilities.
• Five Commissioners are appointed by the Governor and confirmed by the California Senate.
• Governor selects one of the five Commissioners to serve as the CPUC president.
• Commissioners make all CPUC policy decisions, meeting usually twice a month to discuss and vote on issues.
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California’s Preferred Resources
“Loading Order” of Energy Resources:
• Energy efficiency
• Demand response
• Distributed generation
• Renewable generation
• Cleanest available fossil resources
California Public Utilities Code Section 454.5
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Moving to Zero Net Energy Buildings in California
California goals: By 2020, all new homes are zero net energy homes By 2030, all new commercial buildings are ZNE
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California Solar Initiative is Part of Statewide Solar Program: Go Solar California
Goals of Go Solar California • 3,000 MW of new customer-owned distributed solar statewide • Self-sustaining solar industry free from ratepayer funded incentives
Budget • $3.3 billion budget (2007-2016) split across programs throughout state
California Public Utilities Commission
California Energy Commission
Publicly Owned Utilities (POU) Total
Program California Solar Initiative (CSI)
New Solar Homes Partnership (NSHP) Various Go Solar
California
Budget $2,167 million $400 million $784 million $3,351 million
Solar Goals (MW) 1,940 MW 360 MW 700 MW 3,000 MW
Scope All solar systems in
IOU areas except new homes
Solar systems on new homes in IOU territories
All solar systems in POU areas
All of California
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California Solar Initiative (CSI)
California has (not counting RPS): • Over 680 MW installed PV • Over 68,000 solar installations • Over 2/3rds of nation’s solar market • A rebate program that funds solar installations
on the customer-side of the meter: • Launched in 2007 • But built upon CA solar rebate programs
available since 1998 • A growing solar market:
• Over 1,000+ solar contractors • Installations growing at 30-40%+/year
• A range of solar policies: • Net Energy Metering • Interconnection • Tiered Rate Structures • + other policies for wholesale solar
Photo: Don Schramm, P-H-D EnterprisesStadt, 7.74kw STC, May 06, 2008, Stevenson Ranch
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Key Aspects of CSI Program Design
• Statewide eligibility guidelines • Warranty Requirements • Eligible Equipment
• Performance-Based Rebates • Incentives paid based on
expected or actual performance • Incentive payments adjusted
based on the design installation characteristics
• Declining Incentives • Rebate levels drop based on
program demand, not calendar dates or budget availability
Photo: Brian Peterson, Sierra Nevada Brewing Company, Chico, CA California Solar Initiative Funded System, 1,258 kW, September 2007 Installer: Chico Electric
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CSI Incents Performance
Expected Performance-Based Buydown (EPBB)
(Paid in dollars/Watt)
Performance-Based Incentive (PBI) (Paid in cents/kWh)
Ideal for residential and small business customers
Ideal for larger commercial, government & non-profit customers
Systems less than 30 kW
Mandatory for all systems 50 kW and greater
Systems less than 50kW can opt-in to PBI
Incentive paid per Watt based on your system’s expected performance (factors include CEC-AC rating, location, orientation and shading)
Incentive paid based on the actual energy produced by the solar system, measured in kilowatt-hours
One-time, lump sum upfront payment 60 monthly payments over five years
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Comparison of Actual and Expected Performance
Source: Itron, 2009 CSI Impact Evaluation
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Incentives decline as demand grows: CPUC General Market Program has a goal of 1,750 MW
¢/kWh $/watt
PBI: Paid based on actual output over 5 years
EPBB: Paid upfront based on expected output using installation
design characteristics
As of November 5, 2010 PG&E: Step 8 SDG&E: Step 8 Res Step 7 Non-Res SCE: Step 5 Res Step 7 Non-Res
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Plug for www.californiasolarstatistics.com
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Cost Distribution for Large and Small Systems
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CSI Applications by Month
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Installed Solar Projects (#) by Year thru 2009
Data: Installed Solar PV projects at Customer-Sites by year in California’s Investor-Owned Utility Territories (PG&E, SCE, SDG&E). Does not include projects in publicly owned utility territories. Does not include wholesale PV projects or any projects used to directly serve utility load, such as Renewable Portfolio Standard projects. Source: California Public Utilities Commission, April 2010.
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CSI Progress Towards 1,750 MW Goal
• Program is roughly half way to the goal of installing 1,750 MW (23.5 % installed and 26.5 % pending)
Source: www.CaliforniaSolarStatistics.ca.gov, November 5, 2010
MW
MW
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CSI Program Data
All CSI Projects Installed Projects Applications 39,160 Capacity (MW) 415.6 MW Incentive $million $848.9 M Pending Projects Applications 12,284 Capacity (MW 460 MW Incentive $million $625.5 M Total CSI Activity Applications 51,364 Capacity (MW) 875.8 MW Incentive $ million $1,474.5 M
Source: www.CaliforniaSolarStatistics.ca.gov, November 8, 2010
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How long will CSI rebates be available?
• Stay tuned! • In Decision (D.) 10-09-046, issued on Sept 23,
2010, CPUC ordered that, beginning December 22, the CSI Program post weekly updates indicating: • Remaining budget for incentives • How far toward the original CSI program goals we
have reached • Estimate of how far the funding will last through the
“step” table.
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Other CSI Program Components
• Single-family Affordable Solar Homes (SASH) Program • Provides higher rebate to low income customers in deed-restricted
single-family residences • Large workforce development component
• Multifamily Affordable Solar Housing (MASH) Program • Provides higher rebate to multifamily affordable housing in deed
restricted multi-family residences • Provides access to Virtual Net Metering pilot tariff for splitting bill credit
• RD&D Program (www.CalSolarResearch.org) • Provides up to $50 million in a program for projects related to CSI goals • First round solicitation proposed award winners announced • Second round of funding proposals will be announced in July
• CSI-Thermal Program • New in 2010: Provides up to $350 million for solar water heating and
solar heating/cooling technologies • Started accepting applications in May 2010, replaces a San Diego pilot
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CSI-Thermal Program
• Statewide effort to transform the market for Solar Water Heating and other solar thermal through rebates, standards, training and marketing
What is the CSI-Thermal Program?
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CSI-Thermal Program
• Rebates are now available! • CSI-Thermal Program began offering rebates to
single-family residential customers on May 1, 2010 • Average rebate is $1,500 for system that displaces natural gas
and $1,000 for system that displaces electricity
• Incentives became available to multi-family and commercial customers on October 1, 2010
• Applications for low-income housing and non-water heating thermal technologies likely early next year
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CSI-Thermal Online Application
• CSI-Thermal features an automated, online application designed to save time for contractors who use the program.
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CSI-Thermal Program Requirements
• Systems must be certified by the Solar Rating and Certification Corporation (SRCC)
• Contractors must be licensed by CSLB • Contractors or self-installers must become
eligible to participate in the program by attending a one-day training class
• Equipment must be new and include a 10-year warranty
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Rebates
• Total of $305.8 million in rebates structured to drive market transformation • Incentives start high to encourage market entrants, then
decline to foster competition • Incentives start at about $1,500 for a single-family system gas-
displacing system and decline in 4 steps to $550 for the same system • Incentive declines are triggered by growth on the natural-gas side of the
market
• Rebates are based on system output to encourage efficient, well-performing systems
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Rebates
• Rebates split between two customer classes • 40% of rebates set aside for single-family residential
class • Multi-family/commercial class may use up to 60% of
rebates • Capped at $500,000 per system
• Large systems more cost-effective, but small systems have more “market transformation” potential • Residential class is thus “protected” to try to grow the
market
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Rebates – Natural Gas
Step Rebate for average system
Maximum rebate
Incentive per therm displaced
Funding amount
1 $1,500 $1,875 $12.82 $50 M
2 $1,200 $1,500 $10.26 $45 M
3 $900 $1,125 $7.69 $45 M
4 $550 $687.5 $4.70 $40 M
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Rebates – Electric
Step Rebate for average system
Maximum rebate
Incentive per kWh displaced
1 $1,010 $1,263 $0.37
2 $820 $1,025 $0.30
3 $600 $750 $0.22
4 $380 $475 $0.14
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Track Our Solar Market Progress
• Annually: Reports to CA legislature www.cpuc.ca.gov/PUC/energy/Solar/
• Quarterly: Public “CSI Program Forums” – in person meetings www.cpuc.ca.gov/PUC/energy/Solar/forum.htm
• Monthly: Go Solar California! Newsletter www.gosolarcalifornia.ca.gov/news/
• Weekly: All program data available each Wednesday www.CaliforniaSolarStatistics.ca.gov
