Article 1. Solar Energy Systems of California Public Utilities Code >> Division 1. >> Part 2. >> Chapter 9. >> Article 1.
(a) In implementing the California Solar Initiative, the
commission shall do all of the following:
(1) (A) The commission shall authorize the award of monetary
incentives for up to the first megawatt of alternating current
generated by solar energy systems that meet the eligibility criteria
established by the Energy Commission pursuant to Chapter 8.8
(commencing with Section 25780) of Division 15 of the Public
Resources Code. The commission shall determine the eligibility of a
solar energy system, as defined in Section 25781 of the Public
Resources Code, to receive monetary incentives until the time the
Energy Commission establishes eligibility criteria pursuant to
Section 25782. Monetary incentives shall not be awarded for solar
energy systems that do not meet the eligibility criteria. The
incentive level authorized by the commission shall decline each year
following implementation of the California Solar Initiative, at a
rate of no less than an average of 7 percent per year, and, except as
provided in subparagraph (B), shall be zero as of December 31, 2016.
The commission shall adopt and publish a schedule of declining
incentive levels no less than 30 days in advance of the first decline
in incentive levels. The commission may develop incentives based
upon the output of electricity from the system, provided those
incentives are consistent with the declining incentive levels of this
paragraph and the incentives apply to only the first megawatt of
electricity generated by the system.
(B) The incentive level for the installation of a solar energy
system pursuant to Section 2852 shall be zero as of December 31,
2021.
(2) The commission shall adopt a performance-based incentive
program so that by January 1, 2008, 100 percent of incentives for
solar energy systems of 100 kilowatts or greater and at least 50
percent of incentives for solar energy systems of 30 kilowatts or
greater are earned based on the actual electrical output of the solar
energy systems. The commission shall encourage, and may require,
performance-based incentives for solar energy systems of less than 30
kilowatts. Performance-based incentives shall decline at a rate of
no less than an average of 7 percent per year. In developing the
performance-based incentives, the commission may:
(A) Apply performance-based incentives only to customer classes
designated by the commission.
(B) Design the performance-based incentives so that customers may
receive a higher level of incentives than under incentives based on
installed electrical capacity.
(C) Develop financing options that help offset the installation
costs of the solar energy system, provided that this financing is
ultimately repaid in full by the consumer or through the application
of the performance-based rebates.
(3) By January 1, 2008, the commission, in consultation with the
Energy Commission, shall require reasonable and cost-effective energy
efficiency improvements in existing buildings as a condition of
providing incentives for eligible solar energy systems, with
appropriate exemptions or limitations to accommodate the limited
financial resources of low-income residential housing.
(4) Notwithstanding subdivision (g) of Section 2827, the
commission may develop a time-variant tariff that creates the maximum
incentive for ratepayers to install solar energy systems so that the
system's peak electricity production coincides with California's
peak electricity demands and that ensures that ratepayers receive due
value for their contribution to the purchase of solar energy systems
and customers with solar energy systems continue to have an
incentive to use electricity efficiently. In developing the
time-variant tariff, the commission may exclude customers
participating in the tariff from the rate cap for residential
customers for existing baseline quantities or usage by those
customers of up to 130 percent of existing baseline quantities, as
required by Section 739.9. Nothing in this paragraph authorizes the
commission to require time-variant pricing for ratepayers without a
solar energy system.
(b) Notwithstanding subdivision (a), in implementing the
California Solar Initiative, the commission may authorize the award
of monetary incentives for solar thermal and solar water heating
devices, in a total amount up to one hundred million eight hundred
thousand dollars ($100,800,000).
(c) (1) In implementing the California Solar Initiative, the
commission shall not allocate more than fifty million dollars
($50,000,000) to research, development, and demonstration that
explores solar technologies and other distributed generation
technologies that employ or could employ solar energy for generation
or storage of electricity or to offset natural gas usage. Any program
that allocates additional moneys to research, development, and
demonstration shall be developed in collaboration with the Energy
Commission to ensure there is no duplication of efforts, and adopted
by the commission through a rulemaking or other appropriate public
proceeding. Any grant awarded by the commission for research,
development, and demonstration shall be approved by the full
commission at a public meeting. This subdivision does not prohibit
the commission from continuing to allocate moneys to research,
development, and demonstration pursuant to the self-generation
incentive program for distributed generation resources originally
established pursuant to Chapter 329 of the Statutes of 2000, as
modified pursuant to Section 379.6.
(2) The Legislature finds and declares that a program that
provides a stable source of monetary incentives for eligible solar
energy systems will encourage private investment sufficient to make
solar technologies cost effective.
(d) (1) The commission shall not impose any charge upon the
consumption of natural gas, or upon natural gas ratepayers, to fund
the California Solar Initiative.
(2) Notwithstanding any other provision of law, any charge imposed
to fund the program adopted and implemented pursuant to this section
shall be imposed upon all customers not participating in the
California Alternate Rates for Energy (CARE) or family electric rate
assistance (FERA) programs, including those residential customers
subject to the rate limitation specified in Section 739.9 for
existing baseline quantities or usage up to 130 percent of existing
baseline quantities of electricity.
(3) The costs of the program adopted and implemented pursuant to
this section shall not be recovered from customers participating in
the California Alternate Rates for Energy or CARE program established
pursuant to Section 739.1, except to the extent that program costs
are recovered out of the nonbypassable system benefits charge
authorized pursuant to Section 399.8.
(e) Except as provided in subdivision (f), in implementing the
California Solar Initiative, the commission shall ensure that the
total cost over the duration of the program does not exceed three
billion five hundred fifty million eight hundred thousand dollars
($3,550,800,000). Except as provided in subdivision (f), financial
components of the California Solar Initiative shall consist of the
following:
(1) Programs under the supervision of the commission funded by
charges collected from customers of San Diego Gas and Electric
Company, Southern California Edison Company, and Pacific Gas and
Electric Company. Except as provided in subdivision (f), the total
cost over the duration of these programs shall not exceed two billion
three hundred sixty-six million eight hundred thousand dollars
($2,366,800,000) and includes moneys collected directly into a
tracking account for support of the California Solar Initiative.
(2) Programs adopted, implemented, and financed in the amount of
seven hundred eighty-four million dollars ($784,000,000), by charges
collected by local publicly owned electric utilities pursuant to
Section 2854. Nothing in this subdivision shall give the commission
power and jurisdiction with respect to a local publicly owned
electric utility or its customers.
(3) (A) Programs for the installation of solar energy systems on
new construction (New Solar Homes Partnership Program), administered
by the Energy Commission, and funded by charges in the amount of four
hundred million dollars ($400,000,000), collected from customers of
San Diego Gas and Electric Company, Southern California Edison
Company, and Pacific Gas and Electric Company. If the commission is
notified by the Energy Commission that funding available pursuant to
Section 25751 of the Public Resources Code for the New Solar Homes
Partnership Program and any other funding for the purposes of this
paragraph have been exhausted, the commission may require an
electrical corporation to continue administration of the program
pursuant to the guidelines established for the program by the Energy
Commission, until the funding limit authorized by this paragraph has
been reached. The commission may determine whether a third party,
including the Energy Commission, should administer the utility's
continuation of the New Solar Homes Partnership Program. The
commission, in consultation with the Energy Commission, shall
supervise the administration of the continuation of the New Solar
Homes Partnership Program by an electrical corporation or third-party
administrator. After the exhaustion of funds, the Energy Commission
shall notify the Joint Legislative Budget Committee 30 days prior to
the continuation of the program. This subparagraph shall become
inoperative on June 1, 2018.
(B) If the commission requires a continuation of the program
pursuant to subparagraph (A), any funding made available pursuant to
the continuation program shall be encumbered through the issuance of
rebate reservations by no later than June 1, 2018, and disbursed by
no later than December 31, 2021.
(4) The changes made to this subdivision by Chapter 39 of the
Statutes of 2012 do not authorize the levy of a charge or any
increase in the amount collected pursuant to any existing charge, nor
do the changes add to, or detract from, the commission's existing
authority to levy or increase charges.
(f) Upon the expenditure or reservation in any electrical
corporation's service territory of the amount specified in paragraph
(1) of subdivision (e) for low-income residential housing programs
pursuant to subdivision (c) of Section 2852, the commission shall
authorize the continued collection of the charge for the purposes of
Section 2852. The commission shall ensure that the total amount
collected pursuant to this subdivision does not exceed one hundred
eight million dollars ($108,000,000). Upon approval by the
commission, an electrical corporation may use amounts collected
pursuant to subdivision (e) for purposes of funding the general
market portion of the California Solar Initiative, that remain
unspent and unencumbered after December 31, 2016, to reduce the
electrical corporation's portion of the total amount collected
pursuant to this subdivision.
(a) As used in this section,"discount rate" means a
financial mechanism that provides a given amount of interest as an
offset to the loss of the time value of money on solar projects that
receive performance-based incentives under Section 2851.
(b) Before collecting additional ratepayer funds to fund program
shortfalls identified for incentive step levels 8, 9, and 10 for
nonresidential solar photovoltaic systems, the commission shall first
allocate interest accumulated from customer collections and, for the
remainder of the shortfall, increase collections from customers of
San Diego Gas and Electric Company, Southern California Edison
Company, and Pacific Gas and Electric Company for programs described
in paragraph (1) of subdivision (e) of Section 2851.
(c) The discount rate shall be set at 4 percent, unless the
commission determines the rate should be reduced.
(a) A school district or community college district may
request an extension of a reservation expiration date for monetary
incentives for a solar energy system. The commission may grant a
maximum of three extensions of 180 calendar days for each extension.
(b) An extension request pursuant to subdivision (a) shall be made
in writing, submitted to the program administrators, and shall
include a written explanation of the need for the extension and the
amount of additional time needed. In describing the need for the time
extension request, the school district or community college district
shall provide information on the circumstances, that are beyond the
control of the district, that prevent the solar energy system from
being installed as previously described in the initial reservation
request. A failure to submit the incentive claim form package by the
original or extended reservation expiration date shall result in the
cancellation of the request.
(c) An approval of a request for a change in the reservation
expiration date for monetary incentives for a solar energy system
shall not modify any other condition of a reservation for incentives.
(a) As used in this section, the following terms have the
following meanings:
(1) "Affordable housing cost," "affordable rent," and "lower
income households" have the same meanings as in those set forth in
Chapter 2 (commencing with Section 50050) of Part 1 of Division 31 of
the Health and Safety Code.
(2) "California Solar Initiative" means the program providing
ratepayer-funded incentives for eligible solar energy systems adopted
by the Public Utilities Commission in Decision 05-12-044 and
Decision 06-01-024.
(3) "Low-income residential housing" means any of the following:
(A) A multifamily residential complex financed with low-income
housing tax credits, tax-exempt mortgage revenue bonds, general
obligation bonds, or local, state, or federal loans or grants, and
for which either of the following applies:
(i) The rents of the occupants who are lower income households do
not exceed those prescribed by deed restrictions or regulatory
agreements pursuant to the terms of the financing or financial
assistance.
(ii) The affordable units have been or will be initially sold at
an affordable housing cost to a lower income household and those
units are subject to a resale restriction or equity sharing agreement
pursuant to the terms of the financing or financial assistance.
(B) A multifamily residential complex in which at least 20 percent
of the total housing units are sold or rented to lower income
households and either of the following applies:
(i) The rental housing units targeted for lower income households
are subject to a deed restriction or affordability covenant with a
public entity or nonprofit housing provider organized under Section
501(c)(3) of the Internal Revenue Code that has as its stated purpose
in its articles of incorporation on file with the office of the
Secretary of State to provide affordable housing to lower income
households that ensures that the units will be available at an
affordable rent for a period of at least 30 years.
(ii) The housing units have been or will be initially sold at an
affordable cost to a lower income household and those units are
subject to a resale restriction or equity sharing agreement, for
which the homeowner does not receive a greater share of equity than
described in paragraph (2) of subdivision (c) of Section 65915 of the
Government Code, with a public entity or nonprofit housing provider
organized under Section 501(c)(3) of the Internal Revenue Code that
has as its stated purpose in its articles of incorporation on file
with the office of the Secretary of State to provide affordable
housing to lower income households.
(C) An individual residence sold at an affordable housing cost to
a lower income household that is subject to a resale restriction or
equity sharing agreement, for which the homeowner does not receive a
greater share of equity than described in paragraph (2) of
subdivision (c) of Section 65915 of the Government Code, with a
public entity or nonprofit housing provider organized under Section
501(c)(3) of the Internal Revenue Code that has as its stated purpose
in its articles of incorporation on file with the office of the
Secretary of State to provide affordable housing to lower income
households.
(4) "Solar energy system" means a solar energy device that has the
primary purpose of providing for the collection and distribution of
solar energy for the generation of electricity, that produces at
least one kilowatt, and produces not more than five megawatts,
alternating current rated peak electricity, and that meets or exceeds
the eligibility criteria established by the commission or the Energy
Commission.
(b) In establishing the California Solar Initiative, no moneys
shall be diverted from any existing programs for low-income
ratepayers, or from cost-effective energy efficiency or demand
response programs.
(c) (1) The commission shall ensure that not less than 10 percent
of the funds for the California Solar Initiative, as specified in
subdivision (e) of, or moneys collected pursuant to subdivision (f)
of, Section 2851, are utilized for the installation of solar energy
systems on low-income residential housing. Notwithstanding any other
law, the commission may modify the monetary incentives made available
pursuant to the California Solar Initiative to accommodate the
limited financial resources of low-income residential housing.
(2) The commission may incorporate a revolving loan or loan
guarantee program into the California Solar Initiative for low-income
residential housing. All loans outstanding as of January 1, 2022,
shall continue to be repaid consistent with the terms and conditions
of the program adopted and implemented by the commission pursuant to
this subdivision, until repaid in full.
(3) All moneys set aside for the purpose of funding the
installation of solar energy systems on low-income residential
housing that are unexpended and unencumbered on January 1, 2022, and
all moneys thereafter repaid pursuant to paragraph (2), except to the
extent those moneys are encumbered pursuant to this section, shall
be utilized to augment existing cost-effective energy efficiency
measures in low-income residential housing that benefit ratepayers.
(d) In supervising a program implementing the California Solar
Initiative pursuant to this section, the commission shall ensure that
the program does all of the following:
(1) Is designed to maximize the overall benefit to ratepayers.
(2) Requires participants who receive monetary incentives to
enroll in the Energy Savings Assistance Program established pursuant
to Section 382, if eligible.
(3) Provides job training and employment opportunities in the
solar energy and energy efficiency sectors of the economy.
(a) In order to further the state goal of encouraging the
installation of 3,000 megawatts of photovoltaic solar energy in
California within 10 years, the governing body of a local publicly
owned electric utility that sells electricity at retail, shall adopt,
implement, and finance a solar initiative program, funded in
accordance with subdivision (b), for the purpose of investing in, and
encouraging the increased installation of, residential and
commercial solar energy systems.
(b) On or before January 1, 2008, a local publicly owned electric
utility shall offer monetary incentives for the installation of solar
energy systems of at least two dollars and eighty cents ($2.80) per
installed watt, or for the electricity produced by the solar energy
system, measured in kilowatthours, as determined by the governing
board of a local publicly owned electric utility, for photovoltaic
solar energy systems. The incentive level shall decline each year
thereafter at a rate of no less than an average of 7 percent per
year.
(c) A local publicly owned electric utility shall initiate a
public proceeding to fund a solar energy program to adequately
support the goal of installing 3,000 megawatts of photovoltaic solar
energy in California. The proceeding shall determine what additional
funding, if any, is necessary to provide the incentives pursuant to
subdivision (b). The public proceeding shall be completed and the
comprehensive solar energy program established by January 1, 2008.
(d) The solar energy program of a local publicly owned electric
utility shall be consistent with all of the following:
(1) That a solar energy system receiving monetary incentives
comply with the eligibility criteria, design, installation, and
electrical output standards or incentives established by the State
Energy Resources Conservation and Development Commission pursuant to
Section 25782 of the Public Resources Code.
(2) That solar energy systems receiving monetary incentives are
intended primarily to offset part or all of the consumer's own
electricity demand.
(3) That all components in the solar energy system are new and
unused, and have not previously been placed in service in any other
location or for any other application.
(4) That the solar energy system has a warranty of not less than
10 years to protect against defects and undue degradation of
electrical generation output.
(5) That the solar energy system be located on the same premises
of the end-use consumer where the consumer's own electricity demand
is located.
(6) That the solar energy system be connected to the electric
utility's electrical distribution system within the state.
(7) That the solar energy system has meters or other devices in
place to monitor and measure the system's performance and the
quantity of electricity generated by the system.
(8) That the solar energy system be installed in conformance with
the manufacturer's specifications and in compliance with all
applicable electrical and building code standards.
(e) In establishing the program required by this section, no
moneys shall be diverted from any existing programs for low-income
ratepayers, or from cost-effective energy efficiency or demand
response programs.
(f) The statewide expenditures for solar programs adopted,
implemented, and financed by local publicly owned electric utilities
shall be seven hundred eighty-four million dollars ($784,000,000).
The expenditure level for each local publicly owned electric utility
shall be based on that utility's percentage of the total statewide
load served by all local publicly owned electric utilities.
Expenditures by a local publicly owned electric utility may be less
than the utility's cap amount, provided that funding is adequate to
provide the incentives required by subdivisions (a) and (b).