Section 2865 Of Article 2. Solar Water Heating Systems From California Public Utilities Code >> Division 1. >> Part 2. >> Chapter 9. >> Article 2.

. (a) The commission shall establish conditions on gas customer funded incentives pursuant to this article. The conditions shall require both of the following:
  (1) Appropriate siting and high-quality installation of the solar water heating system based on installation guidelines that maximize the performance of the system and prevent qualified systems from being inefficiently or inappropriately installed. The conditions shall not impact housing designs or densities presently authorized by a city, county, or city and county. The goal of this paragraph is to achieve efficient installation of solar water heating systems and promote the greatest energy production or displacement per gas customer dollar.
  (2) Appropriate energy efficiency improvements in the new or existing home or facility where the solar water heating system is installed.
  (b) The commission shall set rating standards for equipment, components, and systems to ensure reasonable performance and shall develop standards that provide for compliance with the minimum ratings.