Chapter 2-Guidelines for 2009 California Solar Incentive Programs
CHAPTER 2: Minimum Program Requirements
This chapter describes the minimum solar program requirements established in SB 1 and by the
Energy Commission to be met by solar energy system incentive program administrators no later
than January 1, 2008.
Program administrators shall comply with the requirements covered in Chapters 3 through 5
regarding solar energy system component standards, system design and installation standards,
and energy efficiency requirements no later than July 1, 2009. POUs with peak demand of 200
MW or less as reported for calendar year 2006 shall comply with the requirements in Chapters 4
and 5 no later than January 1, 2010.
Solar Energy System Definition
As specified by the statutory definition,” solar energy systems” eligible for financial incentives
covered by these Guidelines must have the primary purpose of providing for the collection and
distribution of solar energy for electricity generation. Solar energy systems must produce at least 1
kilowatt (kW), and not more than 5 megawatts, alternating current(AC) rated peak electricity,
accounting for all system losses, and meet or exceed the eligibility criteria established in these
Guidelines.8
Eligible solar technologies must primarily generate electricity. For these Guidelines, “PV” refers to
flat‐plate non‐concentrating photovoltaic modules and “other solar electric generating
technologies” refers to all solar electric generating technologies except flat‐plate non‐concentrating
photovoltaic modules.
These Guidelines do not apply to solar thermal and solar water heating devices that do not
primarily generate electricity, but that qualify for the CPUC’s incentive program as specified in
Public Utilities Code Section 2851(b).
Declining Incentives
Solar energy system incentives must decline at a rate of no less than an average of 7 percent per
year and must be reduced to zero by the end of 2016.9
Incentive Level for Publicly Owned Utilities
Local publicly owned electric utilities must offer incentives for the installation of solar energy
systems beginning at no less than $2.80 per installed watt (AC), or the equivalent in terms of
kilowatt‐hours (kWh), on or before January 1, 2008.
System Location and Grid Interconnection
The solar energy system must be located on the same premises where the consumerʹs own
electricity demand is located. The system must be connected to the electrical distribution grid of the
utility serving the customer’s electrical load.10
Solar Energy System Components
All components in the solar energy system must be new and unused, and have not previously been
placed in service in any other location or for any other application.11 Additions to existing systems
are only allowed for systems that met program requirements at the time of installation and were
partially funded by program administrators in accordance with SB 1 and these SB 1 guidelines. For
these existing systems, the program administrators have records and documentation identifying the
equipment that was installed previously, the program warranty, and the system equipment
standards and warranties that were met by the originally installed equipment. The newly added
generating equipment shall be selected from the current lists of eligible equipment and meet the
current requirements, including the requirement for a 10‐year warranty. All of the current program
eligibility criteria and documentation requirements apply to the added equipment.
All major solar energy system components eligible for ratepayer funding under SB 112 shall be
included on the Energy Commission’s Eligible Equipment Lists. This includes PV modules, other
solar electric generating technologies, inverters, and meters. solar panels currently listed on the
Energy Commission’s Go Solar California website
[http://www.GoSolarCalifornia.org/equipment/pvmodule.php] may be considered eligible for
incentives only between January 1, 2008, and June 30, 2009. Beginning July 1, 2009, these PV
modules will need to complete the testing requirements of Chapter 3 to continue eligibility.
Requirements for other solar electric generating technologies are also in Chapter 3. Information on
solar energy system components can be found at [http://www.GoSolarCalifornia.org].
Performance Meter
All solar energy systems shall be installed with a performance meter or an inverter with a built‐in
performance meter so that the customer can monitor and measure the systemʹs performance and
the quantity of electricity generated by the system.13
System Sized to Offset On-Site Electricity Load
The solar energy system must be intended primarily to offset part or all of the consumer’s own
electricity demand.14 The minimum size of an eligible system is 1 kWAC, accounting for all system
losses.15 Systems sized between 1 kWAC and 5 kWAC, inclusive, shall be assumed to primarily offset
the customer’s annual electricity needs.
System Warranty
All solar energy systems must have a minimum 10‐year warranty to protect against defects and
undue degradation of electrical generation output.16 The 10‐year warranty requirement is optional
for stand‐alone performance meters. Program administrators have discretion over how the 10‐year
warranty provisions are implemented under their respective solar programs.
Installation
The solar energy system must be installed in conformance with the manufacturer’s specifications
and in compliance with all applicable electrical and building code standards.17 Chapter 4 of this
report establishes installation standards which shall be complied with no later than July 1, 2009,
except where noted. In the interim, the Energy Commission recommends that program
administrators strongly encourage applicants for solar incentives to follow these installation
Guidelines as much as possible.
All eligible systems shall be installed by individuals with a current A, B, C‐10, or C‐46
contractor license. Roofing contractors with a current C‐39 license may place PV panels in
accordance with the limitations of their license; however, electrical connections shall not be
made by a roofing contractor. North American Board of Certified Energy Practitioners
(NABCEP) certification of installers is encouraged, though not required. Systems may be selfinstalled
by the purchaser (owner).
Energy Efficiency
Chapter 5 of this report establishes energy efficiency requirements, which shall be complied with
no later than July 1, 2009. In the interim, the Energy Commission recommends that program
administrators strongly encourage applicants for solar incentives to follow these efficiency
requirements measures to the maximum extent feasible.