A Consumer’s Guide to the California Solar Initiative

Statewide Incentives for Solar Energy Systems

“It’s a great feeling knowing that you are generating electricity without using
any outside fuel source.”
—Jack Good, Good & Roberts, Inc., California Solar Initiative Customer

“Installation of my solar power system is an investment in the future. When

is the last time your power bill went down? The answer is that power
bills don’t decrease, so this is a hedge against future cost increases of
electricity, while at the same time doing the right thing.”
—Robert M. Bushman, Homeowner, Thousand Oaks
Table of Contents
The California Solar Initiative:
Saving the Planet One System at a Time ..........................................................3
How Solar Works....................................................................................................4
How Net Energy Metering Works........................................................................5
How Much Solar Systems Cost............................................................................6
California Solar Initiative Statewide Eligibility ..................................................7
California Solar Initiative Application Process ................................................7
Getting Started with Solar ....................................................................................8
Getting Paid: A Quick Guide to California Solar Initiative Incentives ............11
Clean Power Estimator ........................................................................................11
More Facts You Should Know about Going Solar ..........................................12
Frequently Asked Questions (FAQs) ..................................................................13
Glossary of Commonly Used Terms ..................................................................17
How to Contact the Program Administrators ..................................................25

"FedEx and its subsidiaries recognize that effective environmental

management is one of its most important corporate priorities. As a global
transportation industry leader, FedEx believes strongly in progressive
environmental stewardship and resource sustainability. These (solar)
power generation systems represent another step that FedEx companies
are taking as we work collaboratively toward these objectives."
—Mitch Jackson, Director of Environmental Affairs and Sustainability for FedEx Corporation

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 “In 2006, I signed the law to create the California Solar Initiative, a
world-class solar program that is transforming the energy economy
and creating a sustainable solar industry with a goal of 3,000
megawatts of clean and renewable solar power, thereby reducing
output of greenhouse gas emissions by 3 million tons.
Solar energy is a huge step toward meeting our long-term renewable
energy and climate change goals, and further proof that being good to
the environment is also good for the bottom line. Join the thousands of
California homeowners and businesses choosing to go solar today.”
—Governor Arnold Schwarzenegger

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The California Solar Initiative:
Saving the Planet One System at a Time
Sunlight powers life on our planet. When photovoltaic materials (photo
meaning light, voltaic meaning voltage) were first discovered in the late
1880s, visionaries like Thomas Edison knew that this sustainable
discovery would one day change the way we power our world.
The California Solar Initiative is bringing this change to life, and helping
to make the clean, reliable and inexhaustible energy of the sun even more
accessible in a state that has long been a national leader in
environmental stewardship.
Today, it is common to power our homes and businesses with solar
technologies. In fact, thousands of your friends, neighbors and businesses
already rely on the state’s most abundant natural resource—the sun—for their
power, while taking advantage of the financial benefits of Going Solar.
The State of California and its electric utilities foster adoption of solar
power by rewarding customers who Go Solar with cash incentives, a
streamlined interconnection process and simplified requirements for Net
Energy Metering, which allows for measuring the amount of a customer’s
energy production and consumption.
Solar energy is so important to our state and our energy future that the
California Solar Initiative provides incentives to residents and businesses
for installing solar electric systems.
Solar energy is a renewable alternative to building power plants that burn
fossil fuels and emit greenhouse gases, which lead to global warming and
climate change.
By Going Solar, you are reinforcing California’s commitment to a healthy
environment and economy that makes the future bright for California and
leaves a legacy of clean energy for generations to come.
Purchasing a solar electric system is an investment in your home or
business and, as with any investment, careful planning will help you make
the right decisions for your home or business.
This booklet introduces customers to the California Solar Initiative and to
the process of installing a solar electric system. It is neither a technical
nor economic guide to designing or installing a system; for that, you
should consult an experienced solar contractor.

“The California Solar Initiative incentive from PG&E helps alleviate the
up-front costs of installing solar. This makes it a more viable option for
those of us who want to go green.”
—Steve Blank, Homeowner, Pescadero

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 How Solar Works
There are two major forms of solar energy: photovoltaic (PV) systems and
solar thermal systems.
PV cells convert sunlight into electricity, powering everything from lamps
to electronic devices and even electric cars. They work any time the sun is
shining, and more electricity is produced when the sunlight is more
intense and strikes the PV modules directly. Solar thermal systems use the
sun’s heat to make electricity or are used in water heating applications to
displace gas use. Solar thermal can also be used in large-scale electric
generation.
In PV systems, a flow of direct current (DC) electricity is produced when
sunlight strikes an array of solar panels. Appliances and machinery,
however, operate on alternating current (AC), as supplied by your utility.
The DC energy produced by the panels is fed into an inverter that converts
the DC power into AC power, which then feeds into the main electrical
panel that powers your home or business.

1. Individual photovoltaic (PV) cells

are connected to panels. Solar
panels convert sunlight into direct
current (DC) electricity.

2. Inverter converts direct current (DC) into alternating current (AC)

for electricity in the home.

3. The utility meter records the net amount of energy generated through the PV system. When you’re
creating more electricity than you’re using, your meter will spin backward and the excess electricity is
sent to the electric grid. This helps to offset the cost of your electricity usage at night or on cloudy days
when your system is not producing electricity.

Did You Know?

• California is #1 in cumulative installed PV capacity per person in
the U.S. with 9.1 Watts per person.
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How Net Energy Metering Works
At any time of the day, your solar energy system will produce more or less
electricity than your home or business needs. To allow for Net Energy
Metering, a bi-directional meter measures the electricity flowing into and
out of your home or business.
For example, when your solar generating system produces more electricity
than your home or business uses, the “excess” electricity automatically
passes through the meter and onto the utility grid. When this occurs, the
meter runs backward and Net Energy Metering generates a bill credit for
the full retail value of the electricity your system is producing at that time.
At times when your electricity demand is higher than your solar system
produces, your home or business uses electricity supplied by your utility.
Over a 12-month period, customers on Net Energy Metering will pay for the
net amount of electricity used from their utility over and above the amount
of electricity their solar system generates (in addition to monthly non-
generation charges incurred).

A Decade of Solar Legislation

The California Solar Initiative Program continues a 10+ year tradition of
California’s support for solar. The California Solar Initiative Program was
established by Senate Bill 1 (SB 1) and in a series of decisions from the
California Public Utilities Commission (CPUC) in collaboration with the
California Energy Commission (CEC).
The California Solar Initiative Program replaces the solar portion of
two incentive programs (the Emerging Renewables and Self-Generation
Incentive programs), which started funding solar in California in the
late 1990s.
In addition, the CEC administers the 10-year, $400 million New Solar
Homes Partnership (NSHP), a separate but coordinated program that offers
financial incentives for solar PV systems installed on new homes.

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 How Much Solar Systems Cost
No single answer applies in every case, but incentives offered through the
California Solar Initiative will reduce your expenses in many cases by 20%
of the system cost—plus, you could dramatically reduce your annual
electric bills, saving you out-of-pocket immediately.
The cost of a PV system depends on a number of factors, including system
size, equipment options and labor costs. The size of your system may be
the most significant factor in any measurement of cost vs. benefits, the
analysis of which may be done by your solar contractor.
It is also important to factor in the cost of capital used to finance your
project. In simplest terms, prices are discussed in terms of dollars per
Watt. Currently, solar industry market reports suggest roughly
$9/Watt–$10/Watt for residential systems, and often times less for
commercial systems. As more systems are installed, prices are expected
to go down. Incentives are in the range of $1.50/Watt–$2.50/Watt,
depending on your region, building type and system design. The average
residential system is 4,000 Watts or 4 kilowatts (kW).

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California Solar Initiative Statewide Eligibility
Nearly all residential, commercial, government and non-profit customers
of the state’s three investor-owned electric utilities—Southern California
Edison (SCE), Pacific Gas & Electric (PG&E) and San Diego Gas & Electric
(SDG&E)—are eligible for incentives provided through the California Solar
Initiative for solar systems from 1 kilowatt (kW) to 1 megawatt (MW).
Most household and small business systems are less than 10 kW;
however, for those customers installing systems larger than 1 MW, the
first megawatt is eligible for incentives.
Responsibility for administration of the program is shared by SCE and
PG&E for their respective customers, and by the California Center for
Sustainable Energy (CCSE), which serves as a third-party administrator for
SDG&E customers.
Customers of municipal utilities may also qualify for similar incentives
through their municipal service provider.

Did You Know?

• Californians have installed 69% of all of the grid-tied PV capacity in
the U.S., which is 280 MW cumulative to date through 2007.
Californians have installed about 33,000 out of the nation’s 48,000 solar
systems. The state with the second-most is New Jersey, with 9% of
total installed capacity.

California Solar Initiative Application Process

The California Solar Initiative application process is simple. It begins by
completing a quick, free energy efficiency audit. After doing so, select an
installer, who will then help you determine the correct system size for
your premises. They also will fill out the incentive Reservation Request
Form ( RRF ) and submit it to one of the Program Administrators—SCE,
PG&E or CCSE (for SDG&E customers). The Program Administrator will
then reserve the incentive amount based on the size of your solar project.
Once your system is installed, you or your installer will contact the utility
for permission to connect your system to its electric grid. After your
system is inspected and approved, you or your installer will fill out the
Incentive Claim Form (ICF) package and submit it to the Program
Administrator for payment. Then you or your installer will receive a check
from the Program Administrator for your incentive amount.
Don’t forget to apply for the appropriate federal tax credit if applicable.

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 Getting Started with Solar
1. Energy Efficiency Self-Audit: Right-Size Your System
Making your home or business energy efficient before you Go Solar is an
essential first step. Energy-saving actions—such as changing
incandescent bulbs to compact fluorescent lamps (CFLs), and replacing
old, inefficient appliances—are the best way to save energy and money
while providing lasting benefits to the environment.
Energy efficiency measures also help reduce the size of the solar system
you will need, saving you thousands of dollars in up-front installation costs.
You will need to complete a simple energy efficiency survey or audit of
your home or business prior to applying for California Solar Initiative
incentives. If you will be working with a contractor, they may be able to
assist with your energy audit and energy efficiency goals.
Your California Solar Initiative Program Administrator can provide you
with an easy online audit form:
• CCSE (for SDG&E customers): www.gosolar.energycenter.org
• PG&E: www.pge.com/csi
• SCE: www.sce.com/csi

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2. Select the Right Solar Installer
Qualified contractors are your key to getting the most productive solar
energy system for your home or business. Typically, the installer will apply
for the California Solar Initiative incentives on your behalf and arrange for
your system to be interconnected to your utility company's power grid. The
installer may also apply for local permits.
The California Solar Initiative Program provides a list of eligible solar
installers available online at www.gosolarcalifornia.ca.gov/retailers.
Searching for an eligible installer by zip code is the fastest way to find a
solar installer closest to you, although any eligible contractor may work
on your project. Solar installers typically provide free site evaluations,
comprehensive quotes and payback information.
A qualified solar system installer should be able to evaluate factors that
will affect your PV system performance, such as the roof size, orientation
(tilt and direction) of the system, shading and other factors.
Just as if you were doing any other type of home improvement, you will
want to contact at least three solar installers to help ensure you receive
the most competitive bid for your project. It is customary for a solar
installer to visit your home to help you plan the location and size of your
system, as well as choose the incentive type best for you.

Online solar installer lists and guides:

www.gosolarcalifornia.ca.gov/retailers (Sponsored by California
Energy Commission)
www.findsolar.com (Sponsored by U.S. Department of Energy)
www.cslb.ca.gov (Contractors State License Board)

3. Apply for Incentives

Your solar installer will submit a Reservation Request Form (RRF) to your
California Solar Initiative Program Administrator.
After the Program Administrator receives your RRF, they will reserve funds
based on the size of your solar project. These funds will be reserved for a
specified period of time during which you must install your PV system.
Please remember that there is a deadline by which time you must
interconnect your system and submit your Incentive Claim Form (ICF).
Reserving your incentive early ensures your access to the highest applicable
incentive. As more solar systems are purchased and installed by California
consumers, the amount of available incentive dollars decreases.

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 4. Install Your System
As part of the installation process, your solar installer generally handles
any permitting required by the city or county. Once the required permits
are acquired, a typical residential installation can be completed in three
to five days.
Once the system is installed, the city or county may inspect the system.
After your new system passes inspection, the utility must be notified to
interconnect your system to the grid. Once interconnected, the Program
Administrator may also inspect your system as part of program quality
control efforts.
Now that your system is interconnected, you will begin reaping the
benefits of solar power generation and Net Energy Metering. Each month,
electricity you produce in excess of your own consumption will be sent back
to the utility grid and credited to your account. These credits are used to
offset some or all of your annual electric consumption from the utility.

5. Claim Your Incentive

Once your system has been purchased, installed and is operational, you or
your solar installer will submit the Incentive Claim Form (ICF) along with any
supporting documentation, including a verification of project cost and a
calculation of the expected system output (if there are any changes from
the time of your reservation request). The Program Administrator will
verify that your system has been properly connected to the utility electric
grid before sending your California Solar Initiative incentive payment.
Don’t forget to apply for any applicable federal tax credits.

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 Getting Paid: A Quick Guide to California Solar
Initiative Incentives
There are two types of incentives available to customers through the
California Solar Initiative Program: the Expected Performance-Based
Buydown (EPBB) and the Performance-Based Incentive (PBI). Both incentives
reward high-performance systems—the EPBB is a one-time, up-front
payment based on a system’s expected performance; PBI payments are
based on a system’s actual performance and paid out over five years.

Expected Performance-Based Performance-Based

Buydown (EPBB) Incentive (PBI)
(Paid in dollars/Watt) (Paid in cents/kWh)
• Intended for residential and small • Ideal for large commercial, government
business customers and non-profit customers
• Systems less than 50 kW* • Mandatory for all systems 50 kW*
or greater
• Systems less than 50 kW* can
opt-in to PBI
• Incentive paid per Watt based on your • Incentive paid based on the actual
system’s expected future performance energy produced by your solar
(factors include CEC-AC system rating, system in kilowatt-hours
location, orientation and shading)
• One-time lump sum up-front payment • Sixty payments over five years
*As of Jan. 1, 2010, this amount will change to 30 kW.

Clean Power Estimator

The Clean Power Estimator is an online software program, available
through Go Solar California, that provides California residential and
commercial electric customers a personalized estimate of the cost and
benefits of investing in a PV solar electric generating system.
The calculator takes into consideration customer-specific information to
provide the best estimate of a given system’s cost and benefits. This
information includes the estimated cost of the particular system under
consideration, the customer’s location, the applicable incentive level,
electric rate schedule and other customer information.
The calculator provides a variety of consumer-specific analyses based on
the variables provided by the consumer. Please
keep in mind that the Clean Power Estimator
provides an estimated incentive amount.
CLEAN POWER
www.cec.cleanpowerestimator.com/cec.htm ESTIMATOR

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 More Facts You Should Know about Going Solar
• If your roof is more than seven years old, it's probably best to
postpone solar installation until you replace your roof.
• A South or Southwest facing roof is considered to be optimal for a
solar installation.
• If you live in a shaded area, your solar production will be impacted.

“As a locally elected official, I believe it is important to lead—and motivate

others—by example. For me, it was an easy decision to go solar. It is part of
my personal commitment to do what I can to help the environment and
reduce demand on California's electric grid. The decision to put solar
panels on my home has been a good one for me, and there’s nothing better
than seeing all the money I’ve saved on my electric bill!”
—Mayor Michael T. Bennett, City of Goleta

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Frequently Asked Questions (FAQs)
Q. Why should I Go Solar?
A. For many reasons:
• Solar finance experts suggest that every 1,000 Watts of power from PV
panels adds $20,000 to the resale value of your home.
• Solar systems are extremely reliable, able to produce clean energy
from the sun for up to 25 years.
• By using solar to power your home or business, you dramatically
reduce your carbon footprint.
• Incentives are now at their highest in California, and will decline
as more systems are installed. Get the best incentive you can
—Go Solar now!
Q. How much money will I save on my electric bill?
A. The potential savings from a solar system will depend on several
factors, including your current utility rate structure, the size of the solar
system you install and the amount of sunshine your system will receive.
Your solar installer should be able to provide you with an estimate based
on those and other factors. You can also refer to the Clean Power
Estimator for projected savings (see page 11).
Q. What size solar system do I need?
A. Several factors will influence the size of the solar system you need.
Determining your present electricity needs is a first step in sizing your
solar system. You should conduct an energy efficiency survey of your home
or business before you determine the size of the system—by installing
energy efficiency measures, you’ll require less energy and could save
thousands of dollars on panels.

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 Q. Are PV systems reliable?
A. Yes. Stationary PV systems have no moving parts; there is nothing
mechanical that can wear out. They operate silently, and require no fuel,
filters or other costly parts or maintenance.
Solar modules are essentially silicon cells (similar to a computer chip)
embedded inside a protective layer, usually a sturdy tempered glass panel.
They are made to withstand hot, direct sunlight and harsh weather
conditions; they will continue to work as long as sunlight falls on the
surface. They do need to be cleaned periodically to ensure maximum
performance—dust and dirt can reduce a system’s performance.
Solar systems usually have an expected life of up to 25 years. Plus,
systems receiving incentives under the California Solar Initiative are
required to have at least a 10-year equipment warranty.
Q. Which solar technologies are covered under the California Solar Initiative?
A. Incentives are available for solar photovoltaic (PV) technologies (roof-
mounted, ground-mounted and building-integrated PV), non-PV electric
displacing systems, and non-PV solar electric generating systems. In
addition, customers of SDG&E may be eligible for incentives under the
Solar Water Heating Pilot Program. Contact CCSE, the Pilot Program
Administrator, for more information.
Q. How much are application fees?
A. There is no application fee for residential projects and other projects
up to 10 kW. For projects greater than 10 kW, please refer to the
California Solar Initiative Program Handbook or ask your solar installer
about standard application fees.
Q. How can I check on the status of my application?
A. Your installer can provide you with regular updates regarding the
status of your application. You can also review details of your application
online at http://csi.powerclerk.com.
Q. How long will the application process take?
A. The California Solar Initiative Program Administrators target less than
30 days to confirm both residential and non-residential reservation
requests. To help ensure your application is processed quickly, please take
a minute to review your documents and avoid the most frequent issues
encountered with applications: listed equipment does not match the
Expected Performance-Based Buydown printout; missing signature(s); and
incomplete or missing documentation.

"It has been nine months since we installed our solar PV system. It
drastically reduces our energy costs, saving us hundreds of dollars each
month. The best part is, we do nothing! It doesn't matter where we are or
what we do, power generates whenever the sun is up!"
—James Jen, El Dorado Hills

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Q. Are there classes offered in solar PV systems?
A. Yes. Monthly installer classes are held throughout the state, hosted by
the California Solar Initiative Program Administrators. Introductory
information sessions for homeowners are also offered in some locations.
Please check the Web site of the appropriate Program Administrator for
that information. Also, the California Solar Initiative monthly newsletter
provides information on solar-related classes and events; subscribe at
www.gosolarcalifornia.ca.gov/csi.
Q. Must I go on a time-of-use (TOU) rate as a condition of California Solar
Initiative? Will this cost me more?
A. California Solar Initiative applicants are not currently required to take
service on TOU rates unless otherwise required by other terms of their
service. However, many customers benefit from TOU rates because solar
production in the middle of the day generates electricity during peak
periods, and customers receive a Net Energy Metering bill credit at the
higher peak price. Customers should work with their solar installer and
utility to determine what rate is optimal for their unique situation after
the installation of solar.
Q. When I get my California Solar Initiative-funded solar system installed,
will I be “off-grid”?
A. No. The California Solar Initiative Program only provides incentives for
grid-tied solar systems. When a system produces more power than the
customer is using, the excess flows into the grid; at night or whenever
site load is greater than the system’s generation, the customer draws
power from the grid. Thus, consumers that install solar systems under the
California Solar Initiative Program remain connected to the utility grid.

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 Did You Know?
• Californians installed 81 MW in 2007, which was 58% of all grid-
tied PV capacity in the U.S., making California the number one
state in the country, with an increase of 38% over 2006. The
next largest state was New Jersey with 11% of the market.

Q. Do I need a battery backup for my solar electric generating system?

A. A battery backup for your solar system is unnecessary when your
system is connected to your utility’s electric grid. The grid serves as a
backup during times when your system is not producing electricity, for
example, at night and on very cloudy days.
Q. What happens during a power outage?
A. Your solar electric system is designed to shutdown immediately for
safety reasons, unless it includes a battery storage system.
Q. Can my city, homeowners association or neighbor prohibit me from installing
solar on my roof?
A. No. The California Solar Rights Act, enacted in 1978, limits the ability
of codes, covenants and restrictions to restrict solar installations.
Q. Is the power produced by the solar system any different from the utility
power? Will it hurt my home appliances or business equipment?
A. No. The electricity generated by your solar system is no different from
electricity delivered by your local utility. The solar system connects
directly to your utility panel or circuit breaker box, so it interfaces
seamlessly with your utility power.
Q. Does a solar PV system have to meet local building codes?
A. Yes. You will probably need to obtain a permit from the city or county
building department, and may be required to purchase a building permit
and/or electrical permit to legally begin installation. A solar installer
should be able to assist you with local permitting issues.
Q. Can I install a solar PV system myself?
A. While uncommon, self-installations are allowed so long as proper
building permits are obtained and local codes are followed.
Q. Where can I get more information?
A. For additional information on Going Solar in California, visit
www.gosolarcalifornia.ca.gov, or the Web sites of the respective Program
Administrators (see page 25).

Want more info?

The California Solar Initiative electronic newsletter provides monthly
program updates and news for California Solar Initiative participants.
Please visit www.gosolarcalifornia.ca.gov/news to subscribe.

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Glossary of Commonly Used Terms
(Refer to the California Solar Initiative Program Handbook for more details.)
Alternating Current (AC):
Alternating current (AC) is an electric current whose direction reverses
cyclically, as opposed to direct current (DC), whose direction remains
constant. AC is the form of electricity that is delivered to your home or
business. Solar photovoltaic (PV) systems produce DC power, which must
be converted to AC by an inverter. Under the California Solar Initiative
Program, PV electric output is converted to a value called CEC-AC Rating.
(See CEC-AC Rating).
Applicant:
The entity (the Host Customer, System Owner or a third-party designated
by the Host Customer) responsible for filling out and submitting the
California Solar Initiative application and all related materials. The
applicant serves as the main point of contact with the California Solar
Initiative Program Administrator.
Array:
Any number of electrically connected photovoltaic (PV) panels providing a
single electrical output.
Azimuth:
Azimuth is the horizontal angular distance between the vertical plane
containing a point in the sky and true south. All references to azimuth
within the California Solar Initiative Program, unless expressly stated
otherwise, refer to true, not magnetic, azimuth.
Building Integrated Photovoltaic (BIPV):
BIPV technologies form part of the structure to which they are affixed.
Typically integrated into the roofing system, BIPV products can provide
architectural interest and/or a very unobtrusive installation.
Capacity Factor:
The capacity factor for an electricity generating unit is the ratio of the
energy produced during a given time period, measured in kilowatt-hours
(kWh), to the energy the unit could have produced if it had been operating
at its rated capacity during that period, expressed in kilowatts (kW):
Capacity factor = kWh of electricity generated
Rated generating capacity (kW) x period (in hours)

Did You Know?

• Ninety percent of grid-connected installations in 2007 were in
just five states: California, New Jersey, Nevada, Colorado and
New York.

17
 Capacity Rating:
The rating given to a PV system by its manufacturer denoting the load the
system is able to meet or supply when operating at full capacity. For a
solar system, this will occur when the system is in direct sunlight with no
shade. The Program Administrator will verify system capacity rating to
confirm the final incentive amount.
CEC-AC Rating:
The calculation that provides a total estimated energy output of a solar
system, factoring in the efficiency of the inverter. The California Solar
Initiative Program Administrators use the California Energy Commission’s
CEC-AC method to measure nominal output power of PV cells or modules
to determine the system’s rating in order to calculate the appropriate
incentive level.
Conversion Efficiency:
The amount of the sun’s energy that a solar cell can convert into
electricity; the balance is lost as heat or reflected light.
Design Factor:
The design factor is a California Solar Initiative Program term that
compares a proposed system’s expected generation output with that of a
baseline system. The design factor allows the California Solar Initiative
Program Administrators to pay a higher EPBB incentive to optimally-
designed systems. The design factor is calculated using a few key inputs
and the EPBB calculator available at www.csi-epbb.com.
Direct Current (DC):
Solar PV systems produce electricity in direct current (DC), which is
defined as the continuous flow of electricity through a conductor. In DC,
electricity always flows in the same direction, which distinguishes it from
alternating current (AC). Solar PV systems produce DC power, which must
be converted to AC by an inverter in order to power household appliances.
Under the California Solar Initiative Program, PV electric output is
converted to a value called CEC-AC Rating. (See CEC-AC Rating.)

18
Electrical Distribution Grid:
This is the system that provides electricity to most homes and businesses.
A network of power stations, transmission circuits and substations
conduct electricity to consumers for their use. Under the California Solar
Initiative Program, eligible renewable energy systems must be
permanently interconnected and operating parallel to the electrical
distribution grid of the utility serving the customer’s electrical load.
Expected Performance-Based Buydown (EPBB):
The EPBB incentive methodology pays an up-front incentive to participants
installing systems less than 50 kW in size that is based on a system’s
expected future performance. EPBB incentives combine the performance
benefits of PBI with the administrative simplicity of a one-time incentive
paid at the time of project installation. The EPBB incentive is calculated
by multiplying the incentive rate by the system rating by the design factor.
Greenhouse Gases (GHG):
The gases responsible for trapping heat from the sun within the Earth’s
atmosphere (i.e., water vapor, carbon dioxide, methane, ozone,
chlorofluorocarbons and nitrogen oxides). GHGs are released from many
sources, including industrial processes such as power generation from
fossil fuels.
Grid:
Term used to describe an electrical utility distribution network.
Grid-Connected or Grid-Tied PV System:
A PV system in which the PV array is wired into buildings or residences
that are connected to the utility grid. To receive incentives under the
California Solar Initiative Program, PV systems must be connected to the
utility’s grid, allowing excess solar energy to flow back onto the grid,
which produces a bill credit.
Host Customer:
An individual or entity that meets all of the following criteria:
1) has legal rights to occupy the site;
2) receives retail level electric service from PG&E, SCE or SDG&E;
3) is the utility customer of record at the site;
4) is connected to the electric grid; and
5) is the recipient of the net electricity generated from the solar equipment.
Incentive Adjustment Mechanism:
The manner in which solar incentives decline when prescribed megawatt
targets are reached throughout the 10-year duration of the program. The
California Solar Initiative Program Administrators use the sum of the total
megawatts of approved reservations to determine when to adjust the incentive
amounts. The current status of incentive levels and remaining eligible capacity
is shown on the Trigger Tracker at www.csi-trigger.com.

19
 Insolation:
The amount of solar energy that shines on a building or area, equivalent
to energy and usually expressed in annual kilowatt-hours per square meter.
Interconnection Agreement:
A legal document between the Host Customer and their electric utility
authorizing the connection of the customer’s solar system to the utility’s
grid. This agreement is required prior to receiving a California Solar
Initiative incentive payment.
Interval Data Recorder (IDR):
An Interval Data Recorder is a metering device that stores data on energy
production, usually in hourly or 15-minute intervals.
Inverter:
A device that converts direct current (DC) electricity produced by a solar
system into the alternating current (AC) electricity that can be used in a
home or building. Some energy is lost when this conversion takes place.
(See CEC-AC rating.)
Inverter Efficiency:
The AC power output of the inverter divided by the DC power input.
Inverter efficiency is lowest when operating at low loads; thus, it is
important to select inverter(s) of the proper size relative to the PV array.
Kilowatt (kW):
A unit of electrical power equal to 1,000 Watts, which constitutes the
basic unit of electrical demand. The Watt is a metric measurement of
power (not energy) and is the rate (not the duration) at which electricity is
used. 1,000 kW is equal to 1 megawatt (MW).
Kilowatt-Hour (kWh):
A unit of electrical energy, equivalent to the use of 1 kilowatt of
electricity for one full hour. Utilities measure customers’ electric energy
usage on the basis of kilowatt-hours, and electricity rates are most
commonly expressed in cents per kilowatt-hour. The California Solar
Initiative Program’s PBI incentive is paid based on the kilowatt-hours of
energy produced by a solar system.

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“Long Beach is at the forefront of harnessing solar power, and our
success with this reliable alternative energy source is an example of
forward-thinking solutions that promise a brighter tomorrow.”
—Mayor Bob Foster, City of Long Beach
The Long Beach Convention Center has a 700-kW solar panel array on its roof.
This is one of the largest public facility solar panel installations on the West Coast and
generates more than 1 million kWh of pollution-free electricity annually.

Load:
The amount of power carried by a utility system or the amount of power
consumed by an electric customer at a specific time. Base load is the
minimum constant level of electricity required by utility customers; peak
load is the amount of electricity required at the time of greatest demand.
Megawatt (MW):
Unit of electric power equal to 1,000 kW, or 1 million Watts.
Meter:
A device used to measure and record the amount of electricity used or
generated by a consumer. Solar systems receiving an EPBB incentive
require a meter accurate to within ±5%, while systems receiving PBI
payments require a more precise meter accurate to within ±2%.
Modules:
Under the California Solar Initiative Program, a module is the smallest
protected assembly of interconnected PV cells. Modules are typically
rated between 40 Watts and 200 Watts.
Net Energy Metering (NEM) Agreement:
An agreement with the local utility that allows customers to receive a
credit at the retail price of electricity for surplus electricity generated by
certain renewable energy systems, such as those covered under the
California Solar Initiative Program. Under net metering, the electric meter
runs backward as a customer’s solar system generates surplus electricity.
New Construction:
New construction is defined as the construction of new buildings that
have not yet received a permit for occupancy from the local jurisdictional
authority. Solar systems installed on residential new construction should
apply to the California Energy Commission’s New Solar Homes Partnership
Program. Solar systems installed on new non-residential construction
should apply for the California Solar Initiative Program.
New Solar Homes Partnership (NSHP):
A statewide program that is managed by the California Energy Commission
and works with homebuilders to accelerate PV installation on new
residential construction.

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 Orientation:
A term used to describe the direction that the surface of a solar module
faces. The two components of orientation are the tilt angle (the angle of
inclination a module makes from the horizontal) and the azimuth (the
compass angle that the module faces, with north equal to 0 degrees and
south equal to 180 degrees).
Performance-Based Incentives (PBI):
The California Solar Initiative Program will pay PBI incentives in monthly
payments based on recorded kilowatt-hours of solar power produced over
a five-year period. Solar projects receiving PBI incentives will be paid a
flat per kWh payment monthly for PV system output that is serving on-site
load. The monthly PBI incentive payment is calculated by multiplying the
incentive rate by the measured kWh output.
Performance Data Provider (PDP):
For California Solar Initiative customers who take a performance-based
incentive (PBI), the PDP monitors and reports solar system production data
to the California Solar Initiative Program Administrator, who then pays a
PBI incentive based upon the data submitted by the PDP.
Photovoltaic (PV):
The technology that uses a semiconductor to convert light directly into
electricity.
Power Conversion Efficiency:
The ratio of output power to input power of the inverter. Efficiency of
stand-alone inverters will vary significantly with the load. Values found in
manufacturers' specifications are the maximum that can be expected.
Power Purchase Agreements (PPA):
A contract to purchase energy. PPAs are usually established between a
power plant and a purchaser of electrical energy, such as a utility. In the
context of the California Solar Initiative Program, a PPA may be a contract
written between a building owner that wants to use solar energy and a
third-party developer who will install, maintain and own the PV system
used to generate the electricity on the building’s structure, then sell
the solar energy produced by the system to the building owner at a
pre-determined rate. PPAs are not a requirement of the California Solar
Initiative Program, but they are a growing financial instrument that may
facilitate solar installations.
Program Administrator (PA):
Program Administrator refers to PG&E, SCE and CCSE, who perform
administration of the California Solar Initiative Program under the
auspices of the CPUC.

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Renewable Energy Credits (RECs):
Renewable energy certificates (RECs)—also known as green certificates,
green tags or tradable renewable certificates—represent the
environmental attributes of the power produced from renewable energy
projects. By installing a renewable energy system (such as solar), you
become the owner of these environmental attributes, or RECs.
Silicon:
A chemical element (Si) that is the most common semiconductor material
used in making solar PV cells.
Site:
The Host Customer’s premises. Each individual site must be able to
substantiate sufficient electrical load to support the proposed system
size. Ask your installer about requirements specific to your site.
Solar Irradiance:
Radiant energy emitted by the sun, particularly electromagnetic energy.
Solar Pathfinder:
A device used in PV site assessment for charting the sun's path through
the sky for all months of the year, calibrated by the hours of the day. Also
provides other critical, detailed site data.
Solar Thermal:
The process of concentrating sunlight on a relatively small area to create
the high temperatures needed to vaporize water or other fluids to drive a
turbine for generation of electric power, heat water for domestic or
industrial hot water, or space conditioning (heating or cooling). California
Solar Initiative does not currently fund solar hot water systems, but it
does fund some other non-PV systems.
Stand-Alone PV System:
An autonomous or hybrid photovoltaic system not connected to a grid (as
opposed to grid-connected). The California Solar Initiative Program does
not currently offer incentives for stand-alone PV systems.
System Installer:
The system installer is the contractor responsible for installing the
California Solar Initiative incentive-eligible PV system for the Host
Customer.
System Owner:
The owner of the PV system at the time the incentive is paid. For example,
in the case when a vendor sells a system to a Host Customer, the Host
Customer is the System Owner. In the case of a leased system, the lessor
is the System Owner.

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 System Size:
System size is the electricity generating capacity of a given photovoltaic
system based upon CEC-AC rating standards. In the California Solar
Initiative Program, the system size is limited to no greater than the
amount of energy used at a site during the prior 12 months.
Time-of-Use (TOU) Meter:
An electric meter that measures and records the times during which a
customer consumes or generates electricity. This type of meter is used for
customers who are on time-of-use rates.
Time-of-Use (TOU) Rates:
Electricity prices that vary depending on the time period in which the
energy is consumed or produced. In a time-of-use rate structure, higher
prices are charged during utility peak-load times. Such rates can provide
an incentive for consumers to curb power use during peak times. Solar PV
panels tend to produce power during peak times, so they have high value
when used in conjunction with time-of-use rates.
Tracker or Tracking Array:
A number of PV modules mounted such that they track the movement of
the sun across the sky to maximize energy production, either with a
single-axis or dual-axis mechanism.
Warranty:
In the California Solar Initiative Program, inverters and modules must each
carry a 10-year warranty, and meters a one-year warranty. Meters that are
integrated in the inverter must carry a 10-year warranty. The warranty may
be provided in combination by the manufacturer and installer.
Watt:
A unit of measurement of electric power, named after physics pioneer
James Watt.
Watt-hour (Wh):
A unit of energy measurement, equal to one Watt of power used for
one hour.

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How to Contact the Program Administrators
California Center for Sustainable Energy
Attn: California Solar Initiative Program Manager
8690 Balboa Avenue, Ste. 100
San Diego, CA 92123
Email: csi@energycenter.org
Phone: 858-244-1177
(866) SDENERGY
Fax: 858-244-1178
www.gosolar.energycenter.org

Pacific Gas and Electric Company

PG&E Integrated Processing Center
California Solar Initiative
P.O. Box 7265
San Francisco, CA 94120-7265
Email: Solar@pge.com
Phone (general): 877-743-4112
Phone (solar projects): 415-973-3480
www.pge.com/csi

Southern California Edison

Attn: California Solar Initiative Program Administrator
6042A N. Irwindale Ave.
Irwindale, CA 91702-3702
Email: CSIGroup@sce.com
Phone (general): 800-799-4177
Phone (technical): 866-584-7436
Fax: 626-633-3402
www.sce.com/csi

www.gosolarcalifornia.ca.gov www.cpuc.ca.gov

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© 2008 Pacific Gas and Electric Company, California Center for Sustainable Energy and Southern California Edison
All rights reserved.

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