CPUC Incentivizes Solar on Apartments, Expands Education on Rate Change

The California Public Utilities Commission Dec. 14 okayed up to $100 million a year in subsidies for solar systems on multi-unit housing complexes. It also approved $32 million to help customers understand the upcoming switch to default time-of-use rates.

The solar incentives, according to the decision, are designed to “ensure that the benefits of such solar generation systems, especially the bill credits customers can receive with net-metered on-site solar generation, accrue primarily to the tenants of participating buildings.”

The incentive payments will be funded by the sale of carbon emissions rights by electric utilities.

Commissioner Martha Guzman Aceves emphasized that most of the money will be targeted to benefit tenants, rather than landlords. Also, landlords will not be able to use installation of solar systems as an opportunity to increase rents.

She added that the decision funding multi-family unit solar projects sets goals and eligibility requirements for the program.

Incentive payments will range up to $3.60 per watt for systems that benefit tenants and up to $1.60 a watt for systems that serve common areas of apartment buildings and benefit landlords.

Commissioner Carla Peterman noted that the incentive levels will be reviewed in 2020 and adjusted as needed to keep the program on track.

Progress in installing solar systems on apartment buildings has been sluggish compared to on single family homes since building owners have little incentive to purchase or lease systems because the dwelling units themselves are individually metered.

This week’s decision was made to carry out AB 693, a law enacted in 2015 to encourage solar on apartments with incentive payments for the next ten years, particularly to benefit low-income residents.

Also at this week’s meeting, energy regulators approved on a 4-1 vote spending up to $31.7 million to attempt to educate residential customers about the switch from tiered energy rates to default time-of-use rates in 2019. The decision also allows Pacific Gas & Electric, Southern California Edison and San Diego Gas & Electric to launch time-of-use rates in waves rather than all at once.

“There is only one chance to get it right,” said CPUC President Mike Picker of the residential education outreach program. It is to “enhance customers’ understanding of the new rates and minimize bill impacts,” he said, including avoiding power use at times of high system demand that require the firing up of expensive natural gas-fired peaking plants.

“There are segments of the population that will receive the messages, and will save and shift energy and still pay more,” warned Guzman Aceves, the lone dissenter. She added she was concerned about the lack of a market survey and the price of the expanded residential marketing program.

Commissioner Carla Peterman called the scale and complexity of the consumer outreach and education program “unparalleled.” As the decision points out, “Residential customers have low engagement with energy issues.” – William J. Kelly & Elizabeth McCarthy

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CPUC Incentivizes Solar on Apartments, Expands Education on Rate Change

William J. Kelly

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