California Solar Initiative–Thermal Incentives

CSI—Thermal incentives are intended to encourage high-performing systems. CSI—Thermal rebate amounts differ based on customers’ system size, class (e.g., residential or commercial) and water heating fuel source (e.g., gas or electric).

Incentive Structure

Incentives will be paid up front and will be based on estimated annual therm or kilowatt-hour (kWh) displacement. Incentive calculations differ depending on the Solar Rating and Certification Corporation (SRCC) rating of the system. Single-family residential customers must use the OG-300 Calculator and commercial/multi-family customers will use the OG100 Calculator, unless the system is OG-300 rated.

Incentive amounts will decline over eight years of the program in four steps. Steps will decline independently in each service territory and for each customer class. The gas incentives will decline when the budget allocations for a given customer class are achieved. When those decline, the electric steps follow.

Incentive Rate

Single-Family Residential incentives are capped at 125 percent of the average incentive in a given step. Commercial/Multifamily incentives are capped at $500,000 for gas customers and $250,000 for electric customers. Please refer to the table below for the different steps and incentive rates.

Gas Displacing Incentive Structure

Step	Customer Class	Incentive Per Therm Displaced	Incentive Cap	PG&E Budget Allocation
1	Single-Family Residential Commercial/Multifamily	$12.82	$1,875 $500,000	$7,800,000 $11,700,000
	Subtotal			$19,500,000
2	Single-Family Residential Commercial/Multifamily	$10.26	$1,500 $500,000	$7,020,000 $10,530,000
	Subtotal			$17,550,000
3	Single-Family Residential Commercial/Multifamily	$7.69	$1,125 $500,000	$7,020,000 $10,530,000
	Subtotal			$17,550,000
4	Single-Family Residential Commercial/Multifamily	$4.70	687.5 $500,000	$6,240,000 $9,360,000
	Subtotal			$15,600,000
	Total			$70,200,000

Electric Displacing Incentive Structure

Step Level	Customer Class	Incentive Per kWh Displaced	Incentive Cap
1	Single-Family Residential Commercial/Multifamily	$0.37	$1262.5 $250,000
2	Single-Family Residential Commercial/Multifamily	$0.30	$1,025 $250,000
3	Single-Family Residential Commercial/Multifamily	$0.22	$750 $250,000
4	Single-Family Residential Commercial/Multifamily	$0.14	$475 $250,000

Incentive Calculation

SRCC OG-300 Incentive Calculator

All single-family residential customers must use the OG-300 Incentive Calculator. Commercial/multi-family customers may use the OG-300 Calculator if the system is OG-300 certified, otherwise they will use the OG-

100 Calculator. The calculator is embedded into the CSI—Thermal Database at www.csithermal.com, and will calculate the incentive when the applicant enters the equipment, zip code, tilt, azimuth, and shade factor for the solar water heating system. Applicants can also estimate their incentive on the incentive calculator without submitting a completed application.

There are four variables used in calculating the incentive for SRCC OG-300 systems:

SRCC-estimated annual energy savings, based on the California Energy Commission (CEC) climate zone of the project site. For more information, visit www.solar-rating.org.
Incentive Step Level indicated at the time the application is approved.
Surface Orientation Factor (SOF), which includes the azimuth and tilt of the collectors.
Shade factor based on the average annual availability of sunlight between the hours of 10:00 a.m. and 3:00 p.m. on the collector(s).

The formula to calculate the incentive is:

(SRCC OG-300 estimated annual energy savings) X (Current Incentive Step Level) X (SOF) X (Shade Factor) = $ Incentive Amount

SRCC OG-100 Incentive Calculator (Coming Soon)

Most commercial/multi-family customers will use the OG-100 calculator, which will be available with the launch of the commercial/multifamily program in July, 2010.

Surface Orientation Factor (SOF) Chart

Azimuth	Tilt	SOF	Azimuth	Tilt	SOF
60-90 (East)	0-30	0.85	181-210 (South)	0-30	1
	31-60	not allowed		31-60	0.95
	61-90	not allowed		61-90	0.75

91-120 (East)	0-30	0.85	211-240 (Southwest)	0-30	1
	31-60	0.75		31-60	1
	61-90	not allowed		61-90	0.75

121-150 (Southeast)	0-30	0.95	241-270 (West)	0-30	0.9
	31-60	0.9		31-60	0.85
	61-90	0.75		61-90	not allowed

151-180 (South)	0-30	1	271-300 (West)	0-30	0.85
	31-60	0.95		31-60	not allowed
	61-90	0.75		61-90	not allowed

Shade Factor

Contractors are required to conduct a shade analysis for each site. The minimum allowable average annual availability of the solar collector(s) between the hours of 10:00 a.m. and 3:00 p.m. is 85 percent (15 percent average annual shade between 10:00 a.m. and 3:00 p.m.). Collectors with an annual average availability less than 85% between the hours of 10:00 a.m. and 3:00 p.m. are not eligible for an incentive through the CSI—Thermal Program.

Additionally, for each percentage of average annual availability below 100 percent on the solar collector(s) between 10:00 a.m. and 3:00 p.m., there will be an equal percentage reduction in the system incentive payment down to 85 percent. For example, if the shade analysis reveals a 95 percent average annual availability between 10:00 a.m. and 3:00 p.m., the program administrator will multiply the incentive amount by 95 percent and reduce the incentive by 5 percent. For the purposes of the CSI—Thermal Program the shade factor in this example would be 95 percent.

Pacific Gas & Electric - PG&E