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HomeMy WebLinkAbout13 SB1 Solar Program Agenda Item # 13 Public ACTION To: Board of Directors From: Kathy Neus Date: May 21, 2008 Subject: SB1 Solar Program Update and Program Change 1. WHY THIS MATTER IS BEFORE THE BOARD The Board agreed to review the Solar Program annually and to set the rebate dollars for the upcoming year. 2. HISTORY As part of Governor Schwarzenegger's Million Solar Roof Program, local public owned electric utilities must adopt, implement and finance a solar initiative program by January 2008. SB-1 imposes a state mandated local program that requires the District to make program information available to its customers. The District must use ratepayer funds and expend $1,773,408 over ten years; the dollar amount was set by the California State Legislature. The dollar amount is based upon the District's percentage of the total statewide load served by all local publicly owned electric utilities within California. In addition, SB-1 establishes specific requirements for local programs, including system incentives and a minimum ebate amount be decreased bybate a minimum t state has also mandated that the of 7% a year for the ten-year life of the program. The Board approved the District's Solar Program in November of 2007. 3. NEW INFORMATION As of May 8, 2008 the District has received eighteen applications; predominately residential with a few commallocated Of the twelvteen e of heplicants, the applications. District has sufficient funds llocat din 2008 to Cove The District Handbook allows applications to go forward into upcoming years. However the rebate amounts for future years have yet to be set by the Board. This makes it difficult for applicants to thoroughly evaluate their proposed projects. In the application and Handbook rebate there t need to be made; the er watt installed and the total maximum dollar changes relate to the new p amount rebated. In 2008 the rebate amount is $5.00 a watt installed, the maximum system size is 3kW with a maximum of $15,000 for residential applications; commercial applications are 5kW and $25,000. For 2009 if the new rebate amount is $4.50 (equivalent to a 10% decline), the maximum size would still be 3kW but the maximum dollar amount would be $13,500; commercial would remain at 5kW and the maximum $22,500. 2010 the rebate amount would be $4.05 per watt installed, the maximum system size still is 3kW but maximum dollar would be $12,150 for residential; commercial would be 5kW and a maximum of $20,250. 4. FISCAL IMPACT The fiscal impact would be at the beginning of 2009 for those applicants that installed their systems in 2008 but under the 2009 rebate dollar amount. This would also be the same for 2010 if the same situation occurs. The changes to the application and Handbook have no fiscal impact. 5. RECOMMENDATION To decrease the 2008 rebate dollars by 10% for 2009 and to reduce the 2009 rebate dollars by 10% for 2010. To make all corrections to the Handbook and application as it relates to the new dollar amounts. Michael D. Holley, General Manager S131 Solar Program- Attachment 1 7% Rate Decline Year I Rebate $$ kWs Installed 2008 5.00 35 2009 4.65 38 2010 4.32 41 Total kWs Installed 114 10% Rate Decline Year Rebate $$ kWs Installed 2008 5.00 35 2009 4.50 39 2010 4.05 44 Total kWs Installed 118