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Summary of Feed-In Tariffs

Assembly Bill (AB) 1969 (Yee, 2006) added Public Utilities Code (PU Code) Section 399.20, authorizing tariffs and standard contracts for the purchase of eligible renewable generation from public water and wastewater facilities that are 1.5 MW or less.

On July 26, 2007, the Commission adopted Decision (D.) 07-07-027 ordering each regulated electric utility to submit tariff provisions implementing PU Section 399.20.  D.07-07-027 also authorized additional tariffs beyond those required for AB 1969 to customers other than the public water and wastewater customers in PG&E and SCE service territories.  Resolution E-4137 approved the final tariffs and standard contracts and set the effective date of the tariffs as February 14, 2008.

Senate Bill (SB) 380 (Kehoe, 2008) amended PU Code Section 399.20 to create one tariff that would apply to all utility customers.  The new tariff applies to SDG&E in addition to PG&E and SCE.

SB 32 (Negrete McLeod, 2009) further amended PU Code Section 399.20 and increased the eligible project size to 3 MW.  SB 2 (1x) (Simitian, 2011) amended PU Code 399.20 and deleted the reference to PU Code Section 399.20 and inserted language on how to determine the price. Rulemaking 11-05-005 is currently implementing the statutory changes from SB 380, SB 32, SB 2 (1x).

Program start date: February 14, 2008

Program cap: 500 MW (see allocations)
Current price: 2011 Market Price Referent 

Availability of Tariffs by Utility

Eligible Utility Customers

Feed-In Tariff Available to Water and Wastewater Facilities

Feed-In Tariff Available to Non-Water and Non-Wastewater Facilities

Southern California Edison (Edison)

X

X

Pacific Gas and Electric Company (PG&E),

X

X

San Diego Gas and Electric Company, (SDG&E)

X

X

PacifiCorp

X

 

Sierra Pacific Power Company

X

 

Bear Valley Electric Service (BVES) Division of Golden State Water Company

X

 

Mountain Utilities (MU)

X

 

Each electrical corporation named above is required to notify its water, wastewater and, to the extent reasonable, other potentially interested or affected customers of the availability of this new opportunity, and maintain current information about this opportunity on its web page.

Difference Between Feed-In Tariffs and other Renewable Programs

These tariffs are not available for facilities that have participated in the California Solar Initiative (CSI), Self-Generation Incentive Program (SGIP), Renewables Portfolio Standard (RPS) program or other ratepayer funded generation incentive program, including net metering tariffs.

Under the California Solar Initiative (CSI) and the Self Generation Incentive Program (SGIP), customers are offered upfront financial incentives to install solar, wind, and biogas generating capacity that can offset their customer load.  Most customers that want to generate renewables that can offset their own usage will be better off using net-metering and our established incentive programs like the California Solar Initiative, due to the embedded financial incentive in net metering, and the fact that the incentive programs are designed to help customers offset the upfront capital expenditure of installations.  Incentive programs are currently available for solar (California Solar Initiative) and biogas and wind (Self Generation Incentive Program).  The feed-in tariffs also cover biomass and geothermal, for which there are no onsite generation incentive programs. Some customers may prefer a long-term contract at a fixed price over a financial incentive paid in the short term (under CSI for example) coupled with net metering.

Comparison of Various Renewable Programs

 

Feed-In Tariffs

California Solar Initiative

Self-Generation Incentive Program

Renewable Portfolio Standard Program

Open to all renewable resources

X

 

 

X

Open to solar facilities

X

X

 

X

Open to wind and biogas

X

 

X

X

Facilities over 1.5 MW in total system size

 

X

Rebates only for first 1 MW of generation

X

Rebates only for first 1 MW of generation

X

Facilities under 1.5 MW in system size

X

X

X

 

Financial Incentives Available

 

X

Solar Only

X

Wind/Biogas Only

 

Renewable Energy Credits transfer to  utilities per contract terms

X ***

 

 

 

X

Renewable Energy Credits retained by system owner

 

X

See D.07-01-018

X

See D.05-05-011

 

Customers able to use "net metering" tariffs

 

X

X

 

*** = Renewable Energy Credits transfer to the utilities only for the energy sold to the utilities.  If some energy is used onsite under the Net Sales approach, the applicable Renewable Energy Credits stay with the system owner. 

Difference Between Feed-In Tariffs and Those Offered in Spain and Germany

These feed-in tariffs differ from the similarly named "feed-in tariffs" in Germany and Spain which include an incentive in the feed-in tariff price.  Under the feed-in tariffs in California, customers are paid for the cost of generation based on the "market price referent".  The price is based on the value of electrical generation, but is not intended to embed a subsidy or rebate in the price offering.  

Go back to the main FIT page.




Last Modified: 2/7/2012



 
 
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