HomeMy WebLinkAbout9-Consideration of Revising the Solar Rebate Schedule for the SB-1 Program1 •
TRUC EE D 11 NE
Public Utility District
ACTION
To: Board of Directors
From: Kathleen Neus
Date: November 06, 2013
Subject: Consideration of Revising the Solar Rebate Schedule for the SB-1
Program
1. WHY THIS MATTER IS BEFORE THE BOARD
The Board requested a review of the current rate per watt installed for solar
installations under the State of California's Million Solar Roof Program.
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Senate Bill 1 (SB-1) establishes specific requirements for local programs, including
system incentives and a minimum rebate amount. The state has also mandated that
the rebate amount be decreased by a minimum of 7% a year for the ten-year life of the
program.
The Board approved the District's Solar Program in November of 2007. At that
meeting, the Board set the rebate per watt rate for 2008 through 2010, which reflected
a 10% annual reduction.
At the September 16, 2009 Board meeting, the Board set the rebate per watt rate for
the remaining years of the program. The annual reduction was set at 10% per year
until the end of the program in 2017.
A review of the status of the District's Solar Program was presented at the October 16,
2013 regularly scheduled Board meeting.
3. NEW INFORMATION
The rebate per watt installed amount was set by the Board to reduce by 10% a year in
2009.
At the October 16, 2013 Board meeting, the Board requested a review of the existing
rebates and what the rebates would look like if the rebates were reduced by the State
mandate of 7% annually.
Attached are three separate tables reflecting a 10% and a 7% reduction in the annual
rebate and the difference between the two. Within the SB-1 program there are two
categories for District customer rebates," Residential" and "All Others". "Residential'
is all residential regardless if the customer is a primary resident or a second
homeowner. "All Others" is any commercial account such as a business,
governmental agency, schools or special Districts.
Table 1: 10% Reduction per year
YEAR
10%
MAX REBATE (Residential)
MAX REBATE (All others)
2014
$2.66
$7,980
$13,300
2015
$2.39
$7,170
$11,950
2016
$2.15
$6,450
$10,750
2017
$1.94
$5,820
$9,700
Table 2: 7% Reduction per year
YEAR
7%
MAX REBATE (Residential)
MAX REBATE (All others)
2014
$2.74
$8,220
$13,700
2015
$2.55
$7,650
$12,750
2016
$2.37
$7,110
$11,850
2017
$2.21
$6,630
$11,050
Table 3: Difference between a 10% versus a 7% reduction
YEAR
Difference
MAX REBATE (Residential)
MAX REBATE (All others)
2014
$2.74
$240
$400
2015
$2.55
$480
$800
2016
$2.37
$660
$1,100
2017
$2.21
$810
$1,350
A chart, included as Attachment 1, presents the average rebate amounts for both the
annual 10% and 7% reduction for the remaining years of the program.
As of today, the State of California has yet to address the disposition of any left over
funds at the end of 2017.
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The SB-1 customer charge was set by the Board in December of 2007, there is no
proposed change to the customer charge. This existing charge is sufficient to cover
the cost of this program.
The customer charge to raise $177, 400 annually is as follows:
Residential
Small Commercial
Medium Commercial
Large Commercial
$0.60 per month
$5.00 per month
$10.00 per month
$15.00 per month
There is no fiscal impact to the District associated with this item.
5. RECOMMENDATION
Revise the rebate per watt amount to decrease by 7% annually for the remaining years
of the program beginning in 2014.
Michael D. Holley
General Manager