California Solar Initiative
| Program Type | State Rebate Program |
|---|---|
| Technologies | Solar space heat, solar thermal electric, photovoltaics |
| Amount | Dependent on system size |
| Required Documentation | Verification of project cost, calculation of expected system output |
| Official Web Site | http://www.cpuc.ca.gov/PUC/energy/solar |
The state of California offers a cash rebate, through utility companies, to customers who install solar power-generating equipment on their property. For smaller systems (under 50 kilowatts—which covers most residential systems), the state generally pays out a lump sum based on expected performance, or how much power the system is expected to generate.
The state mandates that all power utilities in California offer some form of rebate, though the terms and rates of rebates might vary slightly from utility to utility. For customers of California’s three major utilities, Pacific Gas & Electric, Southern California Edison, and San Diego Gas & Electric (chances are, one of them covers you), the rebate is the same.
Getting the rebate for a photovoltaic system (basically, power-generating solar panels) involves taking a few preliminary steps. First, you need an energy efficiency audit of your home in order to maximize the efficiency of what you already have (these are done through the power company; click here for more information). Second, find a solar installer. Your best bet is to find one who is registered with the California Energy Commission, and can thus apply for the incentive on your behalf. After that, you’ll get a confirmation from the state with the dollar amount of your rebate, and then you have a year to completely install the system. When that’s done, send in the paperwork and wait for the rebate to arrive.
Residential customers can also opt for the Production-Based Incentive, meaning you’ll get a monthly payment for five years based on how much power your system is actually generating. But the lump-sum rebate is the better deal; besides getting an upfront cash payment to cover a chunk of your costs following the completion of the work, you can feasibly take your power bill down to $0 if you’re generating as much or more power than you use. Keep in mind, though, that you will not be paid for any excess energy you might generate.
California also offers rebates for non-power-generating systems, like solar water heaters. Generally, for a system that displaces a natural-gas-powered water heater, you can expect a rebate of about $1,500—in addition to the money you’ll save on natural gas, which could be as much as 75 percent off your current bill.
The CSI is a long-term program that has certain benchmarks set for it over time. As the program meets these benchmarks, incentive levels will decline. Right now, rebates are paid out at a rate of $2.50 per watt AC (actual or based on expected performance), but that rate will decrease over time. To get the most bang for your buck, apply soon.
