Solar photovoltaic installations will have performance-based financial incentives if a proposed decision that the California Public Utilities Commission issued July 24 is adopted. This tentative ruling is part of the state's Million Solar Roofs package launched by the CPUC that aims to create 3,000 MW of new solar power. In the past, subsidies for solar installations have been primarily for a certain amount of energy that an installation could produce. This proposal changes the subsidy from a capacity-based one to one based on actual energy production. The proposed decision is not a one-size-fits-all plan. The decision would "allow incentives to respond to the level of demand for solar rebates, reserve program funds for residential customers, and allow the program in each utility territory to unfold at its own pace," wrote administrative law judge Dorothy Duda. For residential and commercial installations, that subsidy would be 39 cents/kWh. For government and nonprofit installations, it would be 50 cents/kWh. However, smaller installations - those under 100 kW - will have an up-front incentive based on the system's future energy delivery expectations. The initial subsidies for these systems would be $2.50/watt for residential and commercial customers and $3.25/watt for government and nonprofit facilities. In all cases, the subsidies would be reduced over the five years that the program is in effect. The proposed decision is expected to be taken up at the commission's August 24 meeting. - J.A. Savage
