California Center for Sustainable Energy

New statewide incentive program set for CPUC approval

California is stepping up its commitment to solar technologies with the announcement by the Public Utilities Commission in November of a proposed Solar Thermal rebate program as part of the statewide California Solar Initiative ( CSI). Approval is expected at the commission’s December 17 public meeting.

The new CSI Thermal Program, to be funded by more than $350 million in collections from utility ratepayers, will offer rebates to homeowners and businesses that heat water with either electricity or natural gas and are customers of SDG&E, PG&E, Southern California Gas or Southern California Electric. CCSE will administer the program in San Diego. The program is anticipated to start accepting applications on April 1, 2010.

The program’s goal is to facilitate installation of an additional 200,000 Solar Thermal systems by the end of 2017. Roughly 60 percent of the incentives, however, are earmarked for the commercial market, with 30 percent allotted for multifamily housing and 10 percent for the residential market. The CPUC is recommending rebates of up to $1,875 for single-family homeowners and up to $200,000 for owners of multifamily residences and commercial buildings. The commission predicts the greatest potential for solar water heating market growth is in the lodging, health and restaurant sectors.

The new program draws from the experiences of the previous Solar Water Heating Pilot Program administered by CCSE, which was limited to residents in the SDG&E service territory.

“The pilot program helped move the solar water heating market forward with a comprehensive consumer education program,” said Katrina Phruksukarn, CCSE’s program manager for solar water heating. “We will use the lessons learned for the new Thermal Program regarding areas of marketplace development, such as the need for well-trained installers and sales staff, streamlined permitting processes and greater customer awareness of solar water heating benefits.”

Solar water heating systems cost between $6,000 and $7,000, according to Phruksukarn. In addition to the rebates, there are federal tax credits available for up to 30 percent of system costs. A well-maintained solar system lasts up to 30 years.

“Solar water heating is a relatively inexpensive way to put the sun’s abundant energy to work on your home,” said Irene Stillings, CCSE executive director. “You can displace a lot of energy that you currently get from fossil fuels and still have the hot water you need to take baths, wash clothes and dishes and other uses.”

Heating water accounts for approximately 40 percent of a home’s total natural gas use. A solar water heating system can produce up to 75 percent of annual hot water needs by offsetting the natural gas, electricity or propane used by current water heaters. Even more appealing, a solar system works in tandem with an existing water heater, so you do not have to replace or remove it.

To learn more about the CSI Solar Thermal rebate program, call (877) 333-7947 or visit www.swh.energycenter.org. CCSE offers free workshops on solar water heating basics as well as solar photovoltaic ( PV) systems, energy efficiency and a wide range of other sustainability topics. To learn more about the workshops, visit our workshop website or call (866) 733-6374. For more information on the CPUC decision, click here.

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