On January 12, 2006, the CPUC committed to set aside 10% of the overall CSI funds for low-income customers and affordable housing projects. This decision, and as further clarified by Senate Bill 1 signed by the Governor on August 21, 2006, directs the CPUC to implement a solar incentive program that addresses the non-residential and existing housing markets in the investor-owned utility service areas (Pacific Gas and Electric, Southern California Edison, San Diego Gas & Electric).
The CSI Single-Family Low-Income Incentive Program
On November 16, 2007, California Public Utilities Commission (CPUC) adopted an innovative $108 million dollar program provides incentives to low-income, single-family, owner-occupied homes. At this time, the program is in the first stages of implementation and low-income solar incentives are not currently available. The CPUC will now begin the process of selecting a Program Manager to administer the program. The program will not be up and running until after the Program Manager is selected.
The goal of the Single-Family Low-Income Incentive Program is:To provide low-income homeowners access to solar photovoltaic systems, to decrease electricity usage and reduce bills without increasing monthly expenses.
The incentives range from $4.75 to $7.00 per watt. The level of incentive a household receives is dependent on their Federal tax liability and their eligibility for the California Alternate Rates for Energy (CARE) program. The incentives are expected to be available to approximately 5,000 qualifying households. The incentive structure is as follows:
|
|
|
|
Federal Income
Tax Liability
|
Qualifying Low-Income CARE-Eligible Homeowners |
Qualifying Low-Income Homeowners not eligible for CARE |
|
$0 |
$7.00 |
$5.75 |
|
$1 to $1000 |
$6.50 |
$5.25 |
|
$1001 to $2000 |
$6.00 |
$4.75 |
The program will also provide fully-subsidized 1kW photovoltaic (PV) systems to qualifying homeowners who cannot afford to take out loans to cover the cost of the system. Only households with incomes do not exceed 50% of area median income can take advantage of the full-subsidies. The program will provide fully-subsidized systems to approximately 1,800 qualifying households.
Households must meet the definition of "low income residential housing", as defined in Public Utilities Code 2852, to participate in the Single-Family Low-Income Incentive Program. This includes households financed with various types of local, state and federal programs, including loans, grants, tax-exempt mortgage revenue bonds and other forms of assistance. To qualify for the full-subsidy to this requirement, applicants must first meet the definition of “low-income residential housing”, and must also verify that household income that does not exceed 50% of the area median income. Once incentives are available, the Program Manager will assist households in determining their eligibility for this program.
This program provides substantially higher incentives than the mainstream CSI program, and, unlike the mainstream CSI, will not decline as the number of megawatts installed grows. To view current incentive levels for the mainstream CSI, please click here.
A Program Manager has been selected for the Single-Family Low-Income Program as a result of an RFP for Program Manager. The Program Manager will determine if incentive applicants are eligible for CSI low-income incentives, and whether they qualify for the full subsidies or incentives that partially subsidize PV systems. The Program Manager also will help the incentive recipients find loans and grants to cover the remaining cost of the system. The Program Manager is contracted through the investor-owned utilities.
The Program Manager is currently developing an implementation plan with the CPUC. The Single-Family Low-Income Incentive Program will commence after the implementation plan is finalized.
For additional information on the launch of the Single-Family Low-Income Incentive Program, please read our press release or the decision.
The CSI Multifamily Low-Income Incentive Program
The multifamily, low-income program is currently under development.
On July 16, 2007, a proposal on the multifamily low-income incentive program was developed and jointly filed by the CSI Program Administrators: PG&E, SCE and California Center for Sustainable Energy (CCSE). A workshop was held on Wednesday, August 15, 2007 to discuss the Program Administrators’ multifamily proposal.
On February 29, 2008, Energy Division staff developed a proposal on the multifamily low-income incentive program. A workshop will be held on Monday, March 17, 2008 to discuss Energy Division staff proposal.