The new year is well underway (Happy New Year!), and so it is timely to revisit the question of financial incentives to Go Solar in the Run on Sun service area. (You can read more detail about all of these incentives on our Solar Financing page.)
Beyond a doubt, the most significant incentive for going solar is the 30% federal tax credit. Previously set to expire at the end of this year, the federal solar tax credit was extended late last year, continuing at the present 30% through 2019.
The credit applies to solar installations in every utility’s territory, so no matter where you live in the U.S., this credit applies to you. (NB: this is a tax credit, not an income deduction, so you need the tax “appetite” to take full advantage of this incentive - check with your tax advisor.) For residential clients, the basis for the credit is the full cost of your solar project, less any rebate that you might receive from the utility. Commercial clients, who must declare any rebate as income, do not need to deduct their rebate from the system cost when calculating the basis.
Once common everywhere, utility rebates are going the way of the dodo—with one or two notable exceptions. We have rank ordered the local utilities below, based on the reliability of their rebate program.
The big winner, again and by far, is the solar rebate program operated by our own Pasadena Water and Power. Year in and year out, PWP offers rebates to its customers in a transparent and consistent manner - something that cannot be said of any of its neighboring utilities.
As of this writing, PWP is offering a rebate of $0.45/Watt for both residential and commercial customers, and a rebate of $0.90/Watt to non-profit customers (who cannot take advantage of the federal tax credit). Alternatively, PWP also offers a performance-based incentive that is paid out over two years based on the actual production of the system. Residential and commercial customers are paid 14.4¢/kWh, whereas non-profit customers are paid 28.8¢/kWh.
LADWP offers a rebate, if you have the stamina to receive it. Vexed with the most bureaucratic process to be found this side of Orwell’s 1984 dystopia, applying for and receiving a rebate from DWP often feels like a reward for a life well spent.
That said, LADWP is currently offering rebates of $0.30/Watt to residential customers, $0.40/Watt to commercial, and $1.15/Watt to non-profits. Just don’t hold your breath.
These two municipal utilities often feel like one and the same given their similar approach to rebates - which is to say, now you see ‘em, no you don’t.
Unlike their neighbor to the east, neither BWP nor GWP is able to maintain a rebate program throughout the year. Instead, both open their rebate windows on or about July 1st (i.e., the start of their fiscal year) and then hand out money until it is gone, at which time the window slams shut until the following July 1.
Burbank’s program operates under a lottery, which last year opened on July 1 and was exhausted by August 15. In addition, BWP imposes restrictions on the azimuth and pitch of rebated systems, despite their being no technical justification for doing so.
Glendale’s program is even less transparent, and the installation/rebate process is outlined in a 23-step ode to inefficiency.
We will revisit both of these program in mid-June to provide what guidance we can to the residents of these two cities.
The “Solar Partnership Program” in Azusa is fully subscribed. There is a wait list that solar-hopeful customers can get on in the hope that at some point there will be rebate funds available - with no guarantees that there ever will be.
The Anaheim Solar Incentive Program was fully subscribed as of October 1, 2015 and is now closed, with no published plans to revise the program in the future.
SCE’s rebates, which were part of the larger, California Solar Initiative, have expired and no new funds are anticipated. Of course, SCE customers still have the highest electricity rates around, which provides its own—albeit perverse—incentive to Go Solar!
Solar rebates are rapidly becoming an endangered species, but there are still a handful of refuges out there for the lucky few who reside in those areas. Here is our update on who is offering what as of January, 2015.
Although there are lots of ways to approach this, we figured that the most entertaining would be to rank-order each utility in the Run on Sun service area from best to worst in terms of their rebate program (and we will toss in a handy summary chart at the end).
Beyond a doubt, the best run solar rebate program in our service area is provided by our hometown utility, Pasadena Water & Power. The folks at PWP have figured out how to provide generous rebates on a predictable schedule while keeping bureaucratic annoyances to a minimum. Boy could its neighbors learn a thing or two from PWP!
Here are their numbers as of today:
Residential: $0.85/Watt EPBB; 12.9¢/kWh PBI.
Commercial: $0.85/Watt EPBB; 12.9¢/kWh PBI.
Non-Profit: $1.60/Watt EPBB; 24.2¢/kWh PBI.
Keep in mind, those numbers have been in place for a long time (since 2012!) and we expect them to drop some time this year.
Anaheim is offering some big rebate numbers, but they offer a ridiculously small window of opportunity for snagging them. Specifically, the window is about to open and you need to submit a rebate application between today, January 15, 2015 and two weeks from today as the window closes on January 29! After that you are out-of-luck until the next window is set. For those who can jump on the opportunity, here are the numbers:
Residential: $1.25/Watt EPBB; n/a PBI.
Commercial: $1.10/Watt EPBB; 11.0¢/kWh PBI.
Which brings us to the problem children…
Azusa has a rebate program, maybe. But what it really has as of now is a waiting list. Good luck with that.
Burbank and Glendale feel like the same city so its not surprising that their local utilities seem to act in lock step. Both utilities arguably offer rebates, but unlike PWP - their more intelligent neighbor to the East - neither BWP nor GWP can figure out how to keep a rebate program open for more than a few weeks (days?) at a time. They say they are victims of their own success, but we see it as a sign of bad planning. (Oh, and don’t get us started about GWP’s alleged Feed-in Tariff program which after a year and a half is yet to have a single application submitted! Genius!)
As for now, all the unfortunate residents of these two communities can do is wait until the new fiscal year in July and hope that some funds will be allocated.
In SCE territory the party is officially over - there are no more rebate funds available, and despite the Governor’s call for 50% of electricity to come from renewables by 2030, there are no moves a foot to refund the CSI program. This is unfortunate beyond the lack of funding - with the demise of the CSI rebates, so goes the CSI data since that was only gathered as part of the rebate process. As a result, we lose a major solar incentive along with a major source of market data for the largest solar market in the country! More genius! (Here’s a thought - since SCE still requires us to go through the interconnection agreement process - via email - why not collect the data that way?)
LADWP offers a rebate, but they have the most excruciating process ever for getting it. (Think of that wealthy Uncle who could easily help you out, but is going to make you bow and scrape before he cuts loose with some ducats, and you get the picture.) Moreover, non-residential rebates are going away in favor of the Feed-in Tariff program, but for small commercial or non-profit customers, that option simply doesn’t pencil out.
For those residential customers with the patience to outlast the bureaucrats, here’s their rebate:
Residential: $0.40/Watt EPBB; n/a PBI.
Frankly, that’s just not worth the trouble.
So here’s the overall results for all of these utilities:
While rebates are going away, the 30% federal tax credit is still in place, and will continue through the end of 2016. Carpe diem!
The folks running the CSI rebate program over at SCE (alas, dear Bruce, we barely knew ye) announced yesterday the imposition of a wait list for all residential solar rebates. In an email received at 1:53 p.m. on March 17th with the subject line, “CSI Waitlist Notification", we were informed as follows:
Dear CSI Solar Community:
Update on CSI Program Status
The remaining funds in SCE’s California Solar Initiative (CSI) Residential Incentive Program continue to be reserved at a higher than usual pace. Although California Solar Statistics shows just over a million dollars in Remaining Funds, the presence of “Remaining Funds” for a given Program does not mean that all those funds are available as incentives for available projects. Consequently, SCE will be establishing a wait list sooner than anticipated in an effort to ensure there is no oversubscription of the remaining funds. The Waitlist will become effective end of day on Monday March 17, 2014.
All new residential applications received after 7:00pm PST on Monday, March 17, 2014 will be placed onto the Wait List. SCE will continuously monitor the remaining incentive funds and review the highest waitlisted application as funding becomes available. Applications that do not have all required and correct documentation will be suspended and given 14 days to submit the requested information. If the documentation is not submitted correctly within the suspension period, the application will be cancelled and removed from the waitlist. All suspension timelines will be strictly enforced. Additionally, wait list projects may still have an opportunity to receive an incentive if previously reserved projects are cancelled out of the CSI Program. Please note waitlist projects will be reserved in the order received and are not guaranteed an incentive.
SCE has recently requested permission from the California Public Utilities Commission (CPUC) to shift some nonresidential incentive funds into the residential incentive budget. If approved by the CPUC, SCE will be able to allocate more megawatts and therefore more incentive dollars for CSI residential projects.
If you have any questions please call the CSI Helpline at (866)584-7436.
CSI Program Administrator
Southern California Edison
Who waits until mere hours before a deadline to announce the deadline? Why not simply announce it after the fact and be done with the drama?
So what does this mean? It means that as of now, residential CSI rebates in SCE territory are no longer guaranteed. Of course, at 20¢/Watt they were nearly gone for a while now, but this makes it official. Presumably non-residential rebates are still available, but it sounds like SCE will ask the CPUC for permission to tap that piggy bank and shift some or all of those funds to the residential program.
If you are a commercial, or more significantly, non-profit entity considering going solar, you better act quickly before those moneys disappear as well.
Solar rebates are fleeting in many locations—now you see them, now you don’t. Case in point, Burbank Water and Power (as is the case with its cousin in Glendale) is notorious for offering, and then taking away solar rebates. We monitor BWP’s website for new developments, and we have now learned that they will be holding a lottery for possible rebate funds next July. No additional details were made available; presumably they will be posted sometime in June.
Given that development, we decided to update our overall rebate status. Here is how things stand generally in the Run on Sun service area as of this date:
|Utility||EPBB ($/Watt)||PBI (¢/kWh)|
|(Click to see website)||Residential||Commercial||Non-Profit||Residential||Commercial||Non-Profit|
|Anaheim||Unavailable until June, 2014||Unavailable until June, 2014|
|Azusa||Wait List||Wait List|
|Burbank (BWP)||Lottery in July, 2014||Lottery in July, 2014 (30 kW or less)|
|Glendale (GWP)||Unavailable until 7/1/2014||Unavailable until 7/1/2014|
|Los Angeles (LADWP)||$0.40||$0.70||$1.45||Not used|
|SoCal Edison (SCE)||$0.20||$0.25||$0.90||2.5¢||3.2¢||11.4¢|
Here are a couple of very important qualifications to what appears in that table:
This is a moving target; watch this space.
We have been teasing out bits and pieces of our new book, Commercial Solar: Step-by-Step, all summer as we neared the end of the publication process. Well today we can formally announce that it is available both at the Run on Sun Publishing eStore (where we get a better royalty - hint, hint!) and on Amazon.com!
Commercial Solar is intended for two primary audiences:
As the title suggests, the book provides an overview of the process by which an interested party - say, a facilities manager - can go from knowing next to nothing about commercial solar to identifying appropriate contractors to provide bids, analyzing those bids to make meaningful comparisons, determining financing options that are appropriate and even overseeing the actual installation process.
The book features a Foreword written by Boaz Soifer, VP of Sales at Focused Energy:
The material could be dry (much of the reading on this subject is), but is instead casual but precise, clearly laid out, and made accessible through handy use of a narrative in which the Facilities Manager of a fictional company undertakes a commercial solar project himself…
In his typical style—approachable, honest, quirky, and occasionally scathing—Jim has thoughtfully flattened out the complex world of commercial solar PV into an understandable roadmap that anyone can follow to project success.
Interested? You can download a two-chapter excerpt of the book for free, here. Better yet, you can purchase the book today from either our eStore or Amazon for just $9.95. If you are interested in bulk sales (i.e., ten or more copies), discounts are available. Please contact us at Bulk Sales for more information.
And of course, we welcome your comments either here on the blog or at Amazon. Thanks for your support.