Towards Sustainability Western Regional Conference California State University, Chico March 7, 2006

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Towards Sustainability Western Regional
Conference California State University,
ChicoMarch 7, 2006California Solar Initiative
(CSI) and theNew Residential Construction Solar
Program

• Jeff Wilson
• Renewable Energy Program

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California Solar Initiative (CSI)
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The CSI Is

• An incentive program for solar technologies
• Overseen by the CPUC and CEC
• Budgeted at 2.9 billion
• Structured around capacity-based incentives
  (transition to performance-based incentives)
• Active from 2007 2016
• Transitioning in 2006

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An incentive program for solar technologies

• PVs, concentrating solar, solar HVAC, and solar
  water heaters
• Not to exceed 5MW or 100 of historic peak load,
  whichever is less
• Retail projects to serve on-site load
• SDREO to conduct pilot solar water heating
  program

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Overseen by the CPUC and CEC

• CPUC will oversee existing residential and
  commercial
• CEC will oversee new residential
• Third-party admin for existing residential
• Utilities and SDREO for admin of commercial
• Third-party evaluations

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Budgeted at 2.9 billion

• CPUC program 2.5 billion
• Up to 10 for admin
• Up to 5 for research
• 10 set aside for affordable housing
• CEC program 350 million

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Structured around capacity-based incentives

• Currently, capacity based incentive
• Expect to transition to PBI
• Currently, all market sectors have same rebate of
  2.80/watt (in 2006)
• Rebate to decline by 0.25 (10 of first years
  incentive level) per year
• Energy efficiency audit required for all existing
  buildings

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Active from 2007 2016

• Ten year program provides certainty
• Program changes may include
• Shift to PBI
• Adjustments to incentive levels
• Incentives differentiated by market segment
• Reconsideration of administrators
• Evaluations are to be conducted periodically

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Transitioning in 2006

• Continue with Self-Gen and ERP for 2006
• Workshops in Spring 2006
• PBI and federal tax interactions
• Program handbook development
• Energy Efficiency
• Workshops in Fall 2006
• Marketing and outreach proposals
• Advance metering
• RDD proposals
• Incentives for non-PV technologies

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New Residential Construction Solar Program
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How do we construct a new solar program?
Policy
Law
EAP 2004 IEPR 2005 IEPR
SB 1038
Precedent
ERP, Self-Gen Program
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How do we construct a new solar program?

• Who?
• What?
• Where?
• When?
• How?
• How Much?

Eligible Participants
Eligible Equipment
Geographic Scope
Program Duration
Procedures, Specifications, Administration
Incentive Structures,
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Eligible Participants

• Home buyers, builders, solar installers, solar
  manufacturers, municipalities?
• Joint Staff Report suggests builders
• ERP limits eligibility to system owner
• City of Roseville investigating requiring 10 of
  all new home install PVs
• More fundamental question of who is driving the
  solar home market.

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Eligible Participants?

• Should the program induce supply push, demand
  pull, or both?
• Who should receive the incentives?
• Home builder
• Home buyer
• Both the home builder and home buyer
• System owner, whoever that might be
• Some other party or mix of parties

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Eligible Systems

• Eligible systems limited to solar systems
  installed on energy efficient homes
• Joint Staff Report suggests limiting systems to
  Energy Star Homes
• California Solar Option / Tier II
• Technologies might include PVs, solar water
  heaters, solar-thermal, solar HVAC
• Size limits based on on-site consumption

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Eligible Systems?

• What energy efficiency level be required?
• Energy Star
• California Solar Option
• Some other benchmark or a combination of levels
• What level of certification and warranty should
  be required?
• What size limits or other program parameters
  should be imposed?

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Geographical Scope

• Societal benefits for all Californians
• IEPR calls for targeting climate zones with hot
  areas and high population growth
• Areas of the state that may participate vs areas
  of the state that provide program funding
• CPUC does not have authority to require
  customer-owned utilities to participate in CSI

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Geographical Scope?

• How should hot areas of the state be targeted?
• How can customer-owned utilities be encouraged to
  participate in a solar program design?

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Program Duration
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Program Duration
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Procedures, Specifications, Admin

• ERP uses an application reservation payment
  process
• Considering a field verification step prior to
  payment
• Advanced Metering Infrastructure (AMI) being
  rolled out from 2006-2013
• Considering contracting out some administration
• Will include periodic evaluations

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Procedures, Specifications, Admin?

• What process approach might be most effective?
• How can field verifications be made
  cost-effective?
• How can the specifications for a solar program be
  coordinated with AMI?
• What administrative tasks can be handle by a
  private entity?
• What should be considered during program
  evaluation?

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Monetary Incentives

• Allocation could be based on first-come
  first-serve, auction, block grant
• Incentives may be based on metered data or
  calculated (non-metered data)
• Joint Staff Report suggested declining rebates
  over time and transition to PBI
• California Solar Option anticipates a calculated
  incentive with performance factor

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Monetary Incentives?

• What allocation methods should be considered?
• What type of incentive should be provided?
  calculated, calculated with performance factor,
  metered, or some combination?
• What elements should be considered in a
  performance factor?
• How should the incentive level be determined?

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Non-Monetary Incentives

• Prior program have focused on monetary incentives
• Issues confronting solar market not just monetary
• Could include technical support for builders,
  training for building officials and salespeople,
  a public awareness campaign
• Could be offered independently of or in
  conjunction with monetary incentives

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Non-Monetary Incentives?

• Are non-monetary incentive of value to a solar
  program?
• How does the value of non-monetary incentives
  compare with monetary incentives?
• If so, how should they be offered? How much and
  to whom?
• Are there other non-monetary incentives that
  should be considered?

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Residential New Construction Solar Program
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• Jeff Wilson, Project Manager
• New Residential Construction
• Solar Program
• jewilson_at_energy.state.ca.us
• [phone]