California Center for Sustainable Energy

CPUC approves details of commercial and multifamily programs

Incentives for commercial and multifamily solar water heating became available throughout the state on Oct. 8 as part of the California Solar Initiative’s Thermal Program that has a goal of adding 200,000 Solar Thermal systems in California by 2018. Residential solar water heating ( SWH) rebates began in May, however the commercial and multifamily portion was held up as the California Public Utilities Commission ( CPUC) went over details of the program with various stakeholders.

According to the CPUC, the program is designed to energize the state’s Solar Thermal market by making it cheaper and easier for businesses and property owners to purchase Solar Thermal systems.

“These systems can be cost-effective for ratepayers, while helping to displace both electricity and natural gas usage in new and existing homes and businesses,” said Commissioner Dian M. Grueneich of the CPUC. “Thus a focused, cost-effective program to improve the market for this technology can serve as a key step in our path to zero net energy.”

Some 60 percent of the $280 million incentive funds allocated by the CPUC for the CSI-Thermal Program are earmarked for commercial and multifamily installations.

Katrina Phruksukarn, CCSE’s program manager for CSI Thermal, said the new program provides customers who use natural gas rebates of up to $500,000 for commercial buildings and multifamily housing. Customers who use electric water heaters will receive smaller rebates – up to $250,000 for commercial/multifamily – because they will realize savings sooner due to the high cost of electricity. Systems installed since July 15, 2009, can apply for the new rebates, Phruksukarn said.

The cost of fully installed commercial SWH systems can range from several thousands of dollars up to hundreds of thousands of dollars and more, according to Phruksukarn. In addition to the rebates, there are federal tax credits available for up to 30 percent of system costs. When combined with the CSI rebate, the total cost of installing a system may be reduced by 50-60 percent. A well-maintained solar system can last up to 30 years while cutting monthly energy costs and reducing greenhouse gas emissions.

The CPUC predicts the greatest potential for solar water heating market growth is in the lodging, health and restaurant sectors. Phruksukarn said Solar Thermal systems are ideal investments for businesses and facilities that require large quantities of hot water, such as multifamily dwellings, industrial facilities and laundromats.

According to the California Air Resources Board, installing 200,000 solar hot water systems will reduce more than 100,000 tons of greenhouse gas emissions each year. The program will also create green industry jobs throughout the state and promote other solar and energy-efficient technologies, according to CPUC officials.

To learn more about the CSI 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.

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