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The California Solar Initiative - CSI

About the California Solar Initiative

photo As part of Governor Arnold Schwarzenegger's $3.3 Billion, Million Solar Roofs Program, California has set a goal to create 3,000 megawatts (MW) of new, solar-produced electricity by 2017 - moving the state toward a cleaner energy future and helping lower the cost of solar systems for consumers.

  • The California Public Utilities Commission, through its California Solar Initiative, provides $2.2 Billion in incentives over the next decade for existing residential homes and existing and new commercial, industrial, and agricultural properties.

  • The California Energy Commission manages a 10-year, $400 million program to encourage solar in new home construction through its New Solar Homes Partnership.

  • Beginning January 2008, the Publicly Owned Utilities (POU) component of Senate Bill 1 requires each municipal utility to offer a solar incentive program to its customers. The POUs will be spending $784 million over 10 years, toward a goal of 660 MW.

The overall goal is to help build a self-sustaining photovoltaic, solar electricity market. The current program does not fund solar hot water systems.

The California Solar Initiative Offers:

  • Photovoltaic incentives starting at $2.50 per watt for systems up to one megawatt in size.

  • Higher incentives for solar installations for existing and new low-income and affordable housing.

  • A pay-for-performance incentive structure to reward high-performing solar projects.

The California Solar Initiative will be coordinated with the state's energy efficiency, "smart" metering, and building standards programs at the Public Utilities Commission and Energy Commission, ensuring that the state is using its energy resources wisely.

CPUC Administration of the California Solar Initiative

On March 2, 2006, the CPUC opened a proceeding to develop rules and procedures for the California Solar Initiative and to continue consideration of policies for the development of cost-effective, clean and reliable distributed generation (DG). On August 21, 2006, the Governor signed Senate Bill 1 (SB1), which directs the CPUC and the Energy Commission to implement the CSI program consistent with specific requirements and budget limits set forth in the legislation.

The PUC has a rulemaking (R. 08-03-008) to reconcile its decisions with SB1, and it also continues to hold public workshops to continue designing program elements. Contact the CPUC to learn how to provide your input in these decisions.

Current incentives provide an upfront, capacity-based payment for a new system. The CSI incentive system will change in 2007 when it moves to performance-based payments. In its August 24, 2006, decision, the CPUC shifted the program from volume-based to performance-based incentives and clarified many elements of the program's design and administration.

Additional information can be found on our Frequently Asked Questions page.