Solar & Battery Regulation & Incentive Programs

California Solar Initiative - Solar Thermal Program

Program Overview


Category:
Financial Incentive
Program Type:
Rebate Program
Implementing Sector:
State
State:
California
Eligible Storage Technologies:
Solar Water Heat, Solar Space Heat, Solar Thermal Process Heat, Solar Pool Heating
Website:
http://www.gosolarcalifornia.ca.gov/solarwater/index.php
Incentive Amount:
Step 1 Incentive Rates (contact utility to determine current incentive levels):
Single Family Residential Incentives:
Systems that displace natural gas: $29.85 per estimated therm displaced
Systems that displace electricity or propane: Funding has been exhausted
Commercial/Multifamily Incentives:
Systems that displace natural gas: $20.19 per estimated therm displaced
Systems that displace electricity or propane: $0.42 per estimated kWh displaced *** Note, funding has been exhausted in this category for SCE and PG&E
Solar Pool heating: $5.00 per estimated therm displaced
Maximum Incentive:
Step 1 Incentive Limits (contact utility to determine current incentive limits):
Single-family residential systems that displace natural gas: $4,366
Single-family residential systems that displace electricity or propane: $1,834
Commercial and multifamily residential systems that displace natural gas: $800,000
Commercial and multifamily residential systems that displace electricity or propane: $250,000
Solar Pool Heating: 50% of total project costs, up to $500,000
Equipment Requirements:
Residential systems must be certified to SRCC OG-300 by either SRCC or International Association of Plumbing and Mechanical Officials (IAPMO)
Solar collectors used in eligible commercial systems must be certified to SRCC OG-100 by either SRCC or IAPMO
Only non-residential solar pool heaters are eligible.
Installation Requirements:
Systems must be installed by an appropriately licensed contractor who is listed as being eligible to participate in the program.
Self-installations are permitted if the building owner attends a designated CSI-Thermal Program training workshop.
Ownership of Renewable Energy Credits:
Remain with customer
Administrator:
SCE, CSE, PG&E, SCGC
Applicable Sectors:
Commercial, Industrial, Local Government, Nonprofit, Residential, Schools, State Government, Federal Government, Multifamily Residential
Budget :
$325 million
Start Date:
05/01/2010
Expiration Date:
12/31/2017
Utility:
Pacific Gas & Electric Co, San Diego Gas & Electric Co, Southern California Edison Co
Last Updated:
08/10/2015

Eligibility Criteria

EligibilitySectorsTechnologies
$/therm displaced29.8500
Residential
Solar Water Heat
max $4366.0000
Residential
Solar Water Heat
$/therm displaced20.1900
Commercial
Industrial
Local Government
Nonprofit
Schools
State Government
Federal Government
Multifamily Residential
Solar Water Heat
Solar Space Heat
Solar Thermal Process Heat
max $800000.0000
Commercial
Industrial
Local Government
Nonprofit
Schools
State Government
Federal Government
Multifamily Residential
Solar Water Heat
Solar Space Heat
Solar Thermal Process Heat
$/therm displaced5.0000
Commercial
Local Government
Nonprofit
Schools
State Government
Federal Government
Multifamily Residential
Solar Pool Heating
max % of cost50.0000
Commercial
Local Government
Nonprofit
Schools
State Government
Federal Government
Multifamily Residential
Solar Pool Heating
max $500000.0000
Commercial
Local Government
Nonprofit
Schools
State Government
Federal Government
Multifamily Residential
Solar Pool Heating

Summary

Note: Funding is no longer available for residential systems that displace electricity or propane in any of the program service territories.  Additionally, funding has been exhausted for commercial/multifamily systems that displace electricity or propane in the service territories of SCE and PG&E.

AB 1470 of 2007 authorized the creation of a $350 million incentive program for solar water heating systems. Of the $350 million in total funding, $25 million is reserved for low-income incentives, $225 million is for systems that will displace natural gas water heaters, and $100 million is set aside for systems replacing electric water heaters. Before developing the program, however, the California Public Utilities Commission (CPUC) had to wait for results from a pilot solar water heating program administered by the Center for Sustainable Energy (CSE) in the San Diego area. After reviewing the positive results of the pilot program, the CPUC developed rules for the statewide program and the program administrators began accepting applications retroactively on May 1, 2010 for single-family residential systems installed after July 15, 2009. Rebate applications for multifamily residential and commercial customers have been accepted since June 2010. CPUC Decision 12-08-008 of August 2012 established separate incentive rates for single-family residential systems and commercial/multifamily systems, each significantly higher than the rates previously available.

Originally restricted to just solar water heaters, the prorgam was expanded by CPUC Decision 13-02-018 in February 2013 to include other solar thermal technologies, including solar process heating, solar cooling, and non-residential solar pool heating. 

The program is being administered by Pacific Gas & Electric (PG&E), Southern California Edison (SCE), Southern California Gas Company (SCGC) and CSE on behalf of San Diego Gas & Electric (SDG&E).  There are different incentive levels depending on whether the solar water heating system displaces electricity, natural gas, or propane. Incentives for systems with a capacity of 250 kW-thermal or less will be paid upfront based on the OG-300 estimated first year energy savings. Larger systems will receive 70 percent of the incentive upfront, with the remaining 30 percent paid after 12 consecutive months, based on actual metered energy savings. Note, CPUC Decision 13-02-018 replaced the 70/30 split with a performance-based incentive which will make quarterly payments for a 2-year period based on metered energy output. This change will not take effect, however, until the new CSI Thermal Handbook is approved.  

Similar to the PV incentives offered through the California Solar Initiative, the incentives offered through this program will step down four times as installation milestones are met. Steps will decline separately in each service territory and for the four general customer classes.

Interested customers should contact the appropriate program administrator:

Pacific Gas and Electric:
Phone: (877) 743-4112
Email: solar@pge.com
Website: http://www.pge.com/csithermal

Center for Sustainable Energy (SDG&E territory):
Phone: (858) 244-1177
Email: swh@energycenter.org
Website: http://www.energycenter.org/swh

Southern California Gas Company:
Phone: (800) Gas-2000
Email: CSIThermalProgram@SoCalGas.com
Website: http://www.socalgas.com/rebates/solar/

Southern California Edison:
Phone: (800) 799-4177
Email: CSIGroup@sce.com
Website: http://www.sce.com/csithermal


Authorities

NameEnacted DateEffective DateExpired Date
CA Public Utilities Code § 2860, et seq.10/12/20071/1/2008
CSI Thermal HandbookFebruary 2015
AB 224909/27/2012