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California Solar Initiative

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Content

General Overview of CSI

What’s New

CSI Status Update

CSI Application Process

CSI Inspections

CSI Metering

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General Overview of CSI

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General Overview of CSI The California Solar Initiative (CSI) program is designed to

provide incentives for the installation and operation of solar photovoltaic (PV) projects• Authorized by the California Public Utilities Commission (CPUC) and

Senate Bill 1• Total CSI budget of $2.165 billion authorized by CPUC• CPUC commitment to a long term 10-year program• Provides incentives to residential retrofit and non-residential retrofit and

new construction solar projects except for residential new construction projects which will be funded through the CEC New Solar Homes Partnership

• Transitions from capacity based incentives to performance based incentives

• Replaces solar incentives previously offered through the Self-Generation Incentive Program and CEC Emerging Renewables Program

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CSI Budget Total authorized CPUC CSI budget is $2.165 Billion Funded by electric distribution rates Regional CSI incentive budgets are as follows:

$223M California Center for Sustainable Energy

$996MSouthern California Edison Company

$946MPacific Gas and Electric Company

$223M

$996MSouthern California Edison Company

$946MPacific Gas and Electric Company

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CSI Eligible Customers Eligible customer projects must be within the service territory of

and must receive retail level electric service from:

• Pacific Gas and Electric (PG&E)

• Southern California Edison (SCE)

• San Diego Gas & Electric (SDG&E)• The California Center for Sustainable Energy administers the

CSI in the SDG&E Service Territory

Municipal electric utility customers are not eligible to receive incentives

Municipal electric utilities are required to have a CSI solar program for their customers starting in 2008

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CSI Eligible Projects Residential Retrofit Projects1

Non-Residential Retrofit and New Construction Projects

Minimum System Size of 1 kW

Maximum System Size of 5 MW

• Incentives will be capped to the First MW

• 1 MW under SGIP and 1 MW under CSI allowed

• Future system expansions allowed

Installed capacity at site may not exceed actual energy consumed during previous 12 months• Maximum System Capacity = 12-months previous kWh usage /

(0.18 x 8760 hr/year)• New Construction and Future Load Growth must be substantiated

1) New construction residential projects administered by the CEC under the New Solar Homes Partnership Program

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CSI Installer & Warranty Requirements

CSI Installer Requirements• Must be listed with Program Administrators to be eligible• Self-Installations allowed • Must have active A, B, C-10, or C-46 license• Must maintain Commercial General Liability, Workers

Compensation and Auto Insurance requirements• Refer to CSI Handbook:

• Section 2.1.4 - Installer Eligibility• Section 2.6.2 - Installer Insurance Requirements

CSI Warranty Requirements• All systems must have minimum 10-year warranty covering

the solar generating system provided for no cost repair or replacement

• Refer to CSI Handbook, Section 2.4

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CSI Incentive Structure

As of January 1, 2007, the CSI program pays: Expected Performance-Based Buydown (EPBB)

incentives for PV projects < 100 kW • EPBB is an up-front incentive based on an estimate of the

system's future performance

• EPBB combines the benefits of rewarding PV System performance with the administrative simplicity of a one-time incentive paid at the time of project installation

Performance-Based Incentives (PBI) for PV projects > 100 kW• Monthly payments based on measured kWh output of solar

power produced over a 5-year period

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Expected Performance Based Buydown (EPBB)

Applies to Systems < 100 kW Paid upfront, based on the following incentive rates

(based on current incentives reserved) EPBB Incentive = EPBB Incentive Rate x System

Rating x Design Factor Design Factor = Simulated solar output of proposed

system/Simulated solar output for optimal system• Takes into consideration location, orientation, tilt and

shading effects on system performance

• EPBB Design Factor Tool: www.csi-epbb.com

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Performance Based Incentives (PBI)

Applies to systems ≥100 kW Paid monthly over a 5-year period, based on the

following incentive rates: PBI Incentive = PBI Incentive Rate x Measured PV

System Energy Output Reservation Amount will vary by capacity factor used

• Reservation Amount = PBI Incentive Rate x .18 x 8760 x CSI System Size x 5 year (fixed systems)

• Reservation Amount = PBI Incentive Rate x .22 x 8760 x CSI System Size x 5 year (tracking systems)

Customers may opt into PBI for systems < 100 kW

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CSI Incentive RatesIncentive structure: Rebates automatically decline based upon reservations reserved Higher rebates for non-taxable entities

  PG&E (MW) EPBB Payments (per Watt) PBI Payments (per kWh)

Step ResNon-Res Residential Commercial

Gov't / Nonprofit Residential Commercial

Gov't / Nonprofit

1 - - n/a n/a n/a n/a n/a n/a

2 10.1 20.5 $2.50 $2.50 $3.25 $0.39 $0.39 $0.50

3 14.4 29.3 $2.20 $2.20 $2.95 $0.34 $0.34 $0.46

4 18.7 38.1 $1.90 $1.90 $2.65 $0.26 $0.26 $0.37

5 23.1 46.8 $1.55 $1.55 $2.30 $0.22 $0.22 $0.32

6 27.4 55.6 $1.10 $1.10 $1.85 $0.15 $0.15 $0.26

7 31 62.9 $0.65 $0.65 $1.40 $0.09 $0.09 $0.19

8 36.1 73.2 $0.35 $0.35 $1.10 $0.05 $0.05 $0.15

9 41.1 83.4 $0.25 $0.25 $0.90 $0.03 $0.03 $0.12

10 50.5 102.5 $0.20 $0.20 $0.70 $0.03 $0.03 $0.10

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As of June 13, 2007

http://www.csi-trigger.com

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Statewide Trigger Point Tracker

http://www.csi-trigger.com

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What’s New

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What’s New Recent TOU decision

Next CSI Program Forum to be held on June 29th in Irwindale (Southern California)

CSI Program Administrators hired technical experts to asses incentives and filed CSI Handbook changes on June 1, 2007

Beta testing statewide database began in June

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Update on Time of Use (TOU) Rate Requirements

TOU tariffs are now optional for CSI applicants not otherwise required to take service on TOU tariffs, until the new tariffs CPUC develops requirements and approves new PG&E TOU tariffs.

Customers who have already applied for CSI rebates have the option of remaining on their TOU rate schedule or returning to their prior electricity rate schedule or an otherwise applicable flat rate schedule for which they qualify.

If customers were required to switch to a TOU rate schedule in order to receive their CSI rebate, they may be eligible to receive a credit for any difference between their bill under the TOU rate schedule and a qualifying flat rate schedule.

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CSI Status Update

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Program Activity to date

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37

240

52

79

40

319

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495

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CSI Applications Received

Res Apps

Non-Res Apps

Res Apps 11 240 79 319 495

Non-Res Apps 37 52 40 51 58

39089 39120 39148 39179 39209

As of June 13, PG&E has received over 1500 CSI applications and issued payments totaling ~$175,000.

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Program Activity to date2007 CSI Applications

Forecast & Actuals

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119

292

553572

641 640 639615 617

642

475

532

370

495

11

240

319

544 550529

543

578

79

0

100

200

300

400

500

600

700

Jan-07 Feb-07 Mar-07 Apr-07 May-07 Jun-07 Jul-07 Aug-07 Sep-07 Oct-07 Nov-07 Dec-07

Revised Projected Res

Totals: Projected Total: 5,748Residential: 4,894

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Annual PG&E Solar Interconnections

Total NEM Applications Received

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Applications R

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2004 2005 2006 2007

As of May 31, 2007, 16,318 PG&E customers have installed 135.9 MW of solar generation

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Annual PG&E Solar Interconnections

70

597

1277

3098

4316

2815

1864

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2000 2001 2002 2003 2004 2005 2006

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CSI Application Process

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Energy Efficiency Requirements Host Customers must perform an energy efficiency

audit to be eligible for CSI incentives

Host Customer are exempt if they:• Provide documentation of an energy efficiency audit

performed at the facility in the last three years• Submit proof of Title 24 energy efficiency compliance

within the past three years Measurement & Evaluation• Demonstrate the have one of the following two national

certifications of energy efficiency for the facility: • Energy Star• LEED

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Energy Efficiency Requirements PG&E audits:

• Residential audits: • Phone Audit: Call the Smarter Energy Line (SEL) at 1-800-933-9555 • On line: Home Energy Analyzer

• Non-Residential audits:• Phone Audit: Call the Business Customer Center (BCC) at 1-800-468-

4PGE(4743) • On line audits: Business Energy Analyzer • Onsite: Contact your local Pacific Gas and Electric Company division

Account Representative, or call the Business Customer Center at 1-800-468-4PGE (4743)

• Agricultural Pump Tests: • Onsite: Contact the Agricultural Pumping Efficiency Program at 1-800-845-

6038

Third party provided audits are acceptable provided:• At the customers expense

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CSI EPBB Tool and Online Application Tool

CSI EPBB Tool:• Developed by AESC• Questions & Comments: CSI-EPBB@aesc-inc.com

CSI Online Application Tool• Clean Power Research PowerClerk

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• All systems oriented between 180º and 270º, facing south, southwest, and west, will be treated equally.

• An “optimal reference orientation tilt” optimized for summer production.

• An “optimal reference latitude tilt” that relates to local latitude.

• Location-specific criteria which account for weather variation and varying degrees of solar insolation, based on local climate and geography.

EPBB Tool: Key CPUC Decision Orders

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How to Access the EPBB Tool

• http://www.csi-epbb.com• Compatible w/ Major PC &

Mac Browsers– Internet Explorer– Opera– Fire Fox– Safari

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3-Step vs. 2-Step Reservation Process

3-Step Reservation Process• Non-Residential System size >10 kW• Subject to Application Fee of 1% of Requested Incentive Amount• Customers may opt-in to Expedited 3-Step

2-Step Reservation Process• Residential System of any size• Non-Residential Systems <10 kW• No Application Fee

Reservation Period• 12-months for retrofit projects• 18-months for new construction/government/non-profit

All forms available at www.pge.com/csi

Refer to CSI Handbook, Section 4.1

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3 Step Process

Refer to CSI Handbook, Section 4.2

Step 1: Reservation Request Completed Reservation Request Application with Original Signature Proof of Electric Utility Service for Site System Description Worksheet Electrical System Sizing Documentation (new/expanded load only) Application Fee (1% of EPBB Incentive Amount) Certification of tax-exempt status and AB1407 compliance (Gov't and Nonprofit only) Documentation of an Energy Efficiency Audit (if you have not met Title 24 or other exemptions) Printout of EPBB Tool Calculation (www.csi-epbb.com)

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3 Step Process

Refer to CSI Handbook, Section 4.2

Step 2: Proof of Project Milestone Completed Proof of Project Milestone Checklist Host Customer Certificate of Insurance System Owner Certificate of Insurance (if different than Host Customer) Copy of Completed Interconnection Application Copy of executed contract for system purchase and installation Copy of executed alternative System Ownership agreement (if System Owner is different than Host Customer) Project Cost Breakdown Worksheet Revised System Sizing Calculations (If applicable) Revised Incentive Calculation Worksheet (If applicable) CSI Program Contract with Original Signature Copy of RFP or solicitation (Government, Non-profit, and Public Entities only)

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3 Step Process

Refer to CSI Handbook, Section 4.7.2

Step 3: Incentive Form Package Complete Incentive Claim Form with Original Signatures Proof of Authorization to Interconnect and Final Interconnection Agreement Copy of Building Permit and Final Inspection sign-off Proof of Warranty Final Project Cost Breakdown Worksheet Final Project Cost Affidavit

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2 Step Process

Refer to CSI Handbook, Section 4.1

Step 1: Reservation Request Completed Reservation Request Application with Original Signature on CSI program Contract

Proof of Electric Utility Service for Site

System Description Worksheet

Electrical System Sizing Documentation (new/expanded load only) Certification of tax-exempt status and AB1407 compliance (Gov't and Nonprofit only) Documentation of an Energy Efficiency Audit (if you have not met Title 24 or other exemptions)

Printout of EPBB Tool Calculation (www.csi-epbb.com)

Copy of Executed Agreement of Solar System Purchase and Installation Copy of Executed Alternative System Ownership Agreement (If System Owner is Different from Host Customer)

Copy of Application for Interconnection Agreement

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2 Step Process

Refer to CSI Handbook, Section 4.1

Step 2: Reservation Confirmation and Claim

Complete Incentive Claim Form with Original Signatures

Proof of Authorization to Interconnect and Final Interconnection Agreement

Copy of Building Permit and Final Inspection sign-off

Proof of Warranty

Final Project Cost Breakdown Worksheet

Final Project Cost Affidavit

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Avoid Common Mistakes• Include host customer e-mail information• If a customer is a public entity, be sure to provide the

AB1407 letter• If a customer is a non-profit, be sure to provide confirmation

that the system will not be receiving tax benefits• In the “Applicant” section, please provide a contact for the

person who will be handling the paperwork and data requests.

• Please provide future load documentation for non-residential new construction or added load projects.

• Whenever possible, include the application fee check with the initial application

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CSI Inspection Process

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CSI Inspections Inspections will check for:

• Verification that equipment nameplates and counts match those submitted on the Incentive Claim Form

• Measurements to verify that system tilt, orientation, and shading values are consistent with values used in the EPBB calculator and submitted along with the Incentive Claim Form

• Verification that system is operational and output is reasonable for conditions at time of inspection

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Common Mistakes

Azimuth• Not corrected for magnetic declination

• Compass used near metal or magnet

• Bad compass Shading

• Misunderstanding of “minimal shading”

• Incorrect shading analysis

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Avoiding Mistakes

Azimuth• Add magnetic declination to compass reading• Stay 10-15 ft. away from metal or magnets• Check reading against tools like GoogleEarth

Shading• Minimal shading requires at least 2:1 distance to

height ratio (equal to 27° altitude angle)• Account for tilt & azimuth in shading analysis

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Failed Inspections Material mechanical failure: A failure that results in a decline

in the expected performance of the system (i.e., one or more of the system components is not operating properly).

Immaterial mechanical failure: minor failures that can be corrected within 60 days.

Material compliance failure: the system as verified does not match the application’s stated system and/or the system does not meet the CSI program eligibility requirements (i.e., the EPBB characteristics are incorrect, the system components or number of components are incorrect, etc.)

Immaterial compliance failure: failures that have no impact on the expected performance of the system and can be corrected within 60 days (i.e. submission of erroneous system data)

Refer to CSI Handbook, Section 2.10.1

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Failed Inspections If an entity fails 3 inspections, they will be disqualified

from the CSI Program

Failed inspection for mechanical failures: 60 calendar days will be allowed to bring the system into compliance after a failed inspection, subject to re-inspection

High volume installers (> 200 installed systems per year):• If the installer accumulates two strikes, the entity will be

placed on probation. If no additional strikes are accumulated within the first year, their first strike is removed and they continue on probation until the second strike’s probation year ends. If they acquire no additional strikes, the second strike is removed, and they will be restored to a zero-strike status.

Refer to CSI Handbook, Section 2.10.1

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CSI Inspections Forms

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CSI Metering

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Meter RequirementsAll Systems Must Have Metering &

Performance Monitoring• Meters are separate from utility revenue meters

• Must have 5-yrs of performance monitoring service

• Subject to certain exemptions (See Table 16 in CSI Handbook)

Meter Costs• Customer must bear all costs for metering and 5 years of data

communication and performance monitoring service

• Costs not to exceed 1% of system costs for 30kW and below, 0.5% above 30kW (See Table 16 for exemptions)

EPBB vs. PBI Accuracy Requirements• EPBB < 10 kW: +/- 5% accurate (inverter meters allowed)

• EPBB > 10 kW & All PBI: +/- 2% accurate

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CSI Handbook

Refer to CSI Handbook, Section 2.8 and Appendix B

Table 16 Metering Summary

5% Meter

(Inverter Integrated) 2% Meter

(Standalone Meter) PMRS

EPBB < 10kW Required Optional Required*

EPBB ≥ 10kW and <20 kW N/A Required Required*

EPBB > 20 kW N/A Required Required

PBI (All System Sizes) N/A Required Required

Notes: • PMRS stands for Performance Monitoring and Reporting System *Required unless the cost of the PMRS fall above the cost cap (the cost of the minimum metering, communication, and reporting system over the first five years for each solar installation size grouping shall be less than 1% of total installed cost for systems up to 30 k and 0.5% for larger systems. See CPUC Decision D.06-08-028). The customer seeking exemption must demonstrate to the Program Administrator that they were not able to satisfy the metering requirements within the applicable cost cap. N/A = Not Applicable

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Meter Data RequirementsTwo Separate Data Streams:

Performance Data to Customer• Daily, hourly or “real-time” performance data to customer

• Data maintained by Performance Monitoring & Reporting Service (PMRS) provider per Handbook requirements

• Only PMRS providers listed with the CEC currently eligible

PBI Data to Program Administrator• Monthly kWh produced 15-min. interval data

• Submitted via approved “Performance Data Provider” (PDP)

• Program Administrators developing PDP requirements

• Electronic Data Interchange (EDI) 867 format (proposed)

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Meter Installation Options

Customers may contract with utility or qualified 3rd

party providers.• Can use any qualified provider for the meter installation, so long

as the meter is CEC-approved & installed to NEC and applicable local codes.

• We recommend using experienced meter installers for safety & reliability reasons. (See CPUC web site for certified Meter Service Providers)

• Customer responsible for installing meter socket for utility-provided meters.

Customers should decide early in the process who will provide meter, MDMA & PMRS services to avoid delays, minimize cost and ensure compatibility.

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Meter Requirements Update

Petition to Modify submitted on March 5th (PG&E, CCSE, CalSEIA, PV Now, Vote Solar Initiative, SMA America)

If approved, Petition would modify CSI as follows:• All EPBB customers allowed to use inverter meters.

• Remove cost cap for all PBI customers & confirm 2% meter requirement for all PBI, regardless of size.

• Remove requirement for PMRS providers to be independent of solar vendors & installers.

Awaiting CPUC action

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Meter & PMRS Links Eligible Equipment, MSP’s, MDMA’s, and

PMRS Listings• Eligible Meters – Listed on CEC website: http://www.consumerenergycenter.org/cgi-bin/eligible_meters.cgi

• MSP – Listing on CPUC website: http://www.cpuc.ca.gov/static/energy/electric/electric+markets/metering/msps.htm

• MDMA – Listed on CPUC website: http://www.cpuc.ca.gov/static/energy/electric/electric+markets/metering/mdmas.htm

• PMRS – Listed on CEC website: http://www.consumerenergycenter.org/erprebate/monitors+rsp.html

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Website Resources

• PG&E Solar Website: www.pge.com/solar• PG&E CSI Website: www.pge.com/csi• CPUC Solar Website:

www.gosolarcalifornia.ca.gov• Locate Solar Installers: www.find.solar.com• CEC PV Eligible Technologies:

http://www.consumerenergycenter.org/erprebate/equipment.html

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Additional PG&E ResourcesPacific Energy Center and Stockton Training Center:

Solar Classes: http://www.pge.com/solarclasses/• Basics of Photovoltaic (PV) Systems for Grid-Tied

Applications • Solar Water Heating Systems • Field Verification and Diagnostic Testing of Photovoltaic

Systems for HERS Raters • Understanding Financial Analysis Methods for Photovoltaic

(PV) Systems Diagnostic Tool Lending Library

• Solar Pathfinder• Solmetric SunEye• All tool requests must be submitted online via our online tool

request form at www.pge.com/pec. The Request to Borrow Tools link at the top of the page brings borrower to our online tool request form.

• We request 2 to 3 days lead time for tool requests.

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PG&E Contact Information Website: www.pge.com/csi Email Address: solar@pge.com Contact Person:

Program Manager, Telephone: (800) 743-5000 Fax: (415) 973-8300 Mailing Address:

PG&E Integrated Processing CenterCalifornia Solar Initiative ProgramP.O. Box 7265San Francisco, CA 94120-7265

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Generation Interconnection Services

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GIS Role

• One point of contact for customer (or authorized agent) with regard to interconnecting systems

• Coordinate various activities, including engineering, metering, and contract administration

• Responsible to ensure system is installed as design indicates and operating according to Rule 21

• Two types of solar interconnections: NEM and non-NEM options

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Process Improvement• Change in AC disconnect requirement policy –

November 2006

• NEM-MT has been approved to simplify projects with solar combined with other generation technologies

• Underway: simplification of application, to be combined with the Agreement for NEM

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Interconnection Application and Agreement

• A separate application and process from CSI (recently updated)

• Process runs parallel with CSI/SGIP

• Application must be complete and include required documents for review

• Execute Inspection and Interconnection Agreement before a system is permitted to operate

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Project Review NEM Non-NEM Analysis of system Single-line diagram (SLD) SLD, Site Diagram Protection n/a in most cases Larger systems/interconnection at

which level (distribution vs transmission)

Metering (revenue meter)

Bi-directional required No metering change

Net Gen Meter (NGOM)

Dependent upon size and/or selection (EPBB vs PBI); meter must conform to standards

AC Disconnect Self-contained meter – not required; Transformer-rated meter- required (Table 7-3, 2007 PG&E “Green Book”)

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Inspection

• Check system to ensure built as designed (matches SLD)

• Install bi-directional meter (NEM)

• Verify installation of AC disconnect and appropriate signage (if required)

• Install Net Gen Output Meter, if needed

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Overall Timeline

• NEM projects- generally less than 30 business days

• Non-NEM- within 60 days, if all required docs/signatures and construction is on schedule

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Total NEM Applications Received

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2004 2005 2006 2007

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Total NEM Interconnections

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2004 2005 2006 2007

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May(Standard & Expanded)

438

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600

Within 12 Over 12 to 30 Over 30

App

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Cou

nt

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Resources

• Standard NEM: http://www.pge.com/suppliers_purchasing/new_generator/solar_wind_generators/standard_e_net/

• Expanded NEM: http://www.pge.com/suppliers_purchasing/new_generator/solar_wind_generators/expanded_e_net/

• Non-NEM projects: http://www.pge.com/suppliers_purchasing/new_generator/retail_generators/

• Contact: gen@pge.com, or 415-972-5676