California Solar Initiative Dian M. Grueneich, Commissioner California Public Utilities Commission March 30, 2006

03/30/062 New California Solar Initiative  CPUC Program –Existing residential buildings  Single-family homes  Low-income  Multi-family apartments –All commercial buildings  Schools  State buildings –All industrial facilities  Warehouses  Manufacturing –All agricultural facilities

03/30/063 New California Solar Initiative  CEC Program –New residential buildings only  Single-family homes  Low-income  Multi-family apartments –CEC will specifically target and work with the builder/developer community

03/30/064 Transition Year: 2006  Funding for new Solar Initiative begins  Program funding will continue through 2016 (11 years)  Administration initially through existing programs (SGIP and ERP)  Agencies will work on: –Establishing new program administrative structure, initially for residential retrofit market –Payment for system performance, based on output, not capacity –Marketing and outreach plans

03/30/065 Solar Initiative Funding

03/30/066 Installations and Rebate Levels (CPUC program only)

03/30/067 Eligible Technologies  Photovoltaics on customer side of meter  Between 1 kW and 5 MW in size [Incentives for solar heating and cooling and concentrating solar (solar thermal electric) will be developed in 2006]

03/30/068 Energy Efficiency Connection  Energy efficiency audits required to receive solar incentive  New construction applications require participation in utility energy efficiency program  Advanced meters and time-varying rates will be provided for solar installations

03/30/069 Affordable and Low-Income Housing  Agencies will set aside 10% of funding for low-income and affordable housing projects  Both single-family homes and multi-family structures will be eligible to participate  Both agencies will consider setting a different incentive level, up to 25% higher, for these installations  Both agencies will explore the option of offering low-cost financing

03/30/0610 Research, Development and Demonstration Activities  The program includes an additional amount of up to 5 percent of the annual budget for potential research, development, and demonstration activities, with emphasis on the demonstration of solar and solar- related technologies.

03/30/0611 Existing Solar Programs –Non-residential systems only, 30 kW and above –~$50 million per year since 2001 –50 MW solar capacity installed; 62 MW in progress CPUC: Self-Generation Incentive Program (SGIP)

03/30/0612 Existing Solar Programs (continued) –Primarily residential systems –~$230 million spent since 1998 –62 MW solar installed capacity CEC: Emerging Renewables Program (ERP)

03/30/0613 Completed and Next Steps √ CPUC opened new proceeding to implement CSI (March 2) √ Staff workshop collected proposals regarding solar performance-based incentives (March 16) √ PV incentives reduced from $2.80/watt to $2.50/watt (March 21) √ Prehearing conference addressed 2006 schedule (March 23)  Staff recommendations (late April 2006) –PBI –Non-PV incentives –Metering specifications  CPUC votes on recommendations (Summer 2006)