California to finalize design of New Solar Homes Partnership
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California to finalize design of New Solar Homes Partnership
SACRAMENTO, California, US, October 4, 2006 (Refocus Weekly) The California Energy Commission has released draft guidelines for its New Solar Homes Partnership, with one tier that is intended to achieve an immediate positive cash flow for homeowners.
Its Renewables Committee will conduct a workshop to discuss the design of the program and to solicit comments on the staff draft and other issues related to the NSHP. It also wants comments on a range of program elements, ranging from efficiency requirements and incentive structure to the reservation process and field verification, and how they pertain to production and custom home construction.
The CEC is developing the partnership as “part of a comprehensive state-wide solar program known as the California Solar Initiative” with the Public Utilities Commission. Development work started last year and is moving forward under Senate Bill 1 which was signed into law in August. The goal is to install 3,000 MW of distributed solar photovoltaic generation in California by the end of 2016.
The New Solar Homes Partnership will provide financial incentives to encourage installation of solar energy systems on new residential construction. It will focus on new buildings, with a goal of 400 MW of installed PV capacity by 2016. Special attention will be provided to address affordable housing issues, while incentives for existing residential and non-residential buildings, and for new non-residential construction, will be provided under the CPUC program.
“The primary goal of the NSHP is to help create a self sustaining market for energy efficient, new solar homes,” the guide explains. “Additional goals include home builders incorporating high levels of energy efficiency with high performing solar systems as standard features, and home buyers demanding energy efficient, solar homes.”
The financial incentive under NSHP is determined by the expected performance of the system (expected electrical generation over the life of the system), which depends on specific key factors regarding equipment efficiency and the design and installation of the system. To qualify for an incentive, the home must be serviced by one of four investor-owned utilities in California (Pacific Gas & Electric, Southern California Edison, San Diego Gas & Electric and Southern California Water), and the PV system must use new certified components and come with a ten-year warranty to protect against undue degradation of electrical output.
Energy efficiency levels for the home must be substantially greater than the 2005 Building Energy Efficiency Standards, and builders can select a tier that saves 15% of the home’s combined space heating, cooling and water heating energy (compared to state standards) or a second tier that saves 35%, as well as high efficacy lighting.
“The CEC places great policy importance on insuring that homes that qualify for a rebate under the NSHP are as energy efficient as possible,” and the first tier is a minimum condition of participation. The second tier level is “intended to achieve an immediate positive cash flow for homeowners and to encourage builders to move towards zero energy homes, reflecting what is regularly being accomplished in California by builders that are participating in the national Building America program.”
Funding for the NSHP originates from the CEC’s Renewables Resources Trust Fund, which uses Public Goods Charge funds to support existing, new and emerging green power technologies. The rebate will start in 2007 at US$2.50 per watt, with a decline in the incentive when a specific volume in capacity has occurred.
“Affordable housing developers face different processes in the purchase and installation of PV systems for their projects” and, to encourage PV in this market, the CEC will provide a rebate that is 25% higher but not to exceed 75% of total system cost, including single- and multi-family developments where 20% of units are reserved for very low or moderate income households for a period of 45 years.
Comments on the draft guidebook must be submitted by October 12.
