The CPUC regulates distributed generation policies and programs on both the customer and utility (wholesale) side of the electric meter. Customer-side of the meter distributed generation incentive programs include the California Solar Initiative and the Self-Generation Incentive Program. These programs are supported by the CPUC's oversight of Net Energy Metering and Interconnection policies. On the utility side of the meter, utilities procure distributed generation resources through a variety of procurement programs, including the Renewable Portfolio Standard program, including competitive solicitations, feed-in tariffs, and utility solar programs, as well as the small combined heat and power (CHP) tariffs.
Customer-Side Distributed Generation
The CPUC oversees two incentive programs for customer-side of the meter distributed generation, also called "onsite generation" or "self generation", for customers in the territories of Pacific Gas & Electric, San Diego Gas & Electric, and Southern California Edison. The California Energy Commission oversees related incentive programs.
California Solar Initiative
- California’s electric utility customers receive upfront incentives when they install solar electric systems on homes, businesses and public sites under the California Solar Initiative. This portal connects users to all California Solar Initiative-related programs, including the affordable housing program, the research and development program, and the solar hot water pilot program.
Self-Generation Incentive Program
- California's electric utility customers receive incentives when they install wind turbines, fuel cell cells, or storage system in conjunction with wind turbines or fuel cells under the Self Generation Incentive Program.
Solar Water Heating Program
- Customers in San Diego Gas & Electric territory are currently eligible for incentives for solar water heating technologies. The CPUC is currently considering a staff proposal for a statewide solar water heating incentive program.
New Solar Homes Program
- Solar incentives for new residential construction are offered through the Energy Commission's New Solar Homes Program, a sister program to the CPUC's California Solar Initiative.
Emerging Renewables Program
- Incentives for small (<30 MW) wind and fuel cell systems are offered under the Energy Commission’s Emerging Renewables Program.
Utility Side (Wholesale) Distributed Generation
The CPUC oversees a variety of policies and programs related to procurement of utility-side of the meter distributed generation, also called "wholesale" or "system-side generation" becuase it is intended to net export onto the electrical system side of the customer's electrical meter. These programs are available for power plants, including customer-owned generators, in the territories of Pacific Gas & Electric, San Diego Gas & Electric, and Southern California Edison, and in some cases the smaller and multijurisdictional utilities, such as Pacificorp or Sierra Pacific.
Utility Solar and Fuel Cell Procurement
Southern California Edison
- On June 18, 2009, Decision (D.) 09-06-049 authorized Southern California Edison (SCE) to build and own 250 megawatts of utility-owned solar photovoltaic capacity and to execute contracts up to 250 MW for generation from similar facilities owned and maintained by Independent Power Producers (IPP) through a competitive solicitation process.
- The CPUC oversight of the SCE Solar Program is handled as part of A.08-03-015.
San Diego Gas and Electric
- On July 11, 2008, San Diego Gas and Electric (SDG&E) filed A.08-07-017, seeking CPUC approval of its proposal to install 52 MWs (dc) of distributed solar PV systems with single-axis tracking at the distribution level. SDG&E proposes to spend $250 million on the project, which it would later recover in rates.
- On March 20, 2009 SDG&E and three other parties filed a settlement that would modify the original application by reducing to 26 MWs the utility-owned portion of the project and adding a competitive procurement mechanism for solar PPAs from IPP-owned projects, as well as an experimental competition between utility and IPP-owned projects and a fund for innovative technologies. Testimony from parties on the settlement agreement is due in August 2009.
Pacific Gas and Electric (PG&E) Solar Program
- On February 24, 2009, PG&E filed A.09-02-019, a five-year program to develop up to 500 MW of mid-sized (typically 1 to 20 MW) solar PV projects in PG&E’s distribution grid. Under the proposal, ownership of the projects would be split between PG&E and non-utility IPPs. PG&E would own 250 MW at an anticipated capital cost of $1.45 billion, and it would execute contracts for electricity from 250 MW of projects owned by non-utility developers.
SCE and PG&E Fuel Cells
- Both SCE and PG&E have applications filed at the Commission for procurement of utility-owned fuel cells.
Policies in Support of Distributed Generation