C a l i f o r n i a E n e r g yC o m m i s s i o n GUIDELINES

GUIDELINESFORCALIFORNIA'S SOLARELECTRICINCENTIVE PROGRAMS(SENATEBILL1) ThirdEdition

JUNE201 0 C EC 300 2010 004 CMF

CALIFORNIA ENERGY COMMISSION

Karen Douglas Chairman James D. Boyd Vice Chair Commissioners Jeffrey D. Byron Anthony Eggert Robert Weisenmiller Melissa Jones Executive Director Craig Hoellwarth Payam Narvand Supervisors Bill Pennington Smita Gupta Patrick Saxton Devorah Eden Lynette Green Joseph Fleshman Principal Authors Tony Goncalves Manager Renewable Energy Program Bill Pennington Manager High Performance Buildings and Standards Development Valerie Hall Deputy Director Efficiency and Renewable Energy Division

ABSTRACT
AsrequiredbySenateBill1,thisdocumentpresentsguidelinesforsolarenergysystem incentiveprogramsinCalifornia. SenateBill1istheculminationoftheGovernorsMillionSolarRoofsInitiative,expandingupon theCaliforniaSolarInitiativeandtheNewSolarHomesPartnership.Thislegislationrequires theCaliforniaEnergyCommissiontoestablisheligibilitycriteria,conditionsforincentives,and ratingstandardstoqualifyforratepayerfundedincentivesprovidedbytheEnergy Commission,theCaliforniaPublicUtilitiesCommission,andpubliclyownedelectricutilities. SB1requiresthreespecificexpectationstobemettoqualifyforratepayerfundedincentives: Highqualitysolarenergysystemswithmaximumsystemperformancetopromotethe highestenergyproductionperratepayerdollar. Optimalsystemperformanceduringperiodsofpeakdemand. Appropriateenergyefficiencyimprovementsinnewandexistinghomesand commercialstructureswheresolarenergysystemsareinstalled.

Keywords:SenateBill1,SB1,MillionSolarRoofsInitiative,CaliforniaSolarInitiative,CSI, NewSolarHomesPartnership,NSHP,CaliforniaEnergyCommission,EnergyCommission, publiclyownedutilities,investorownedutilities,CaliforniaPublicUtilitiesCommission, CPUC,solar,solarenergysystems,solarenergysystemincentiveprograms,electricity generation,photovoltaic,PV,PVCalculator,energyefficiency,guidelines,eligibilitycriteria, conditionsforincentives,ratingstandards,benchmarking,retrocommissioning,HERSrating, fieldverification,energyaudit,PMRS Pleasecitethisreportasfollows: Pennington,Bill,S.Gupta,P.Saxton,D.Eden,L.Green,J.Fleshman.2010GuidelinesFor CaliforniasSolarElectricIncentivePrograms(SenateBill1),ThirdEdition.CaliforniaEnergy Commission.CEC3002010004CMF.

TABLE OF CONTENTS
ABSTRACT.................................................................................................................................................i CHAPTER1:Introduction.......................................................................................................................1 Background............................................................................................................................................2 Schedule..................................................................................................................................................4 Audits......................................................................................................................................................5 CHAPTER2:MinimumProgramRequirements................................................................................6 SolarEnergySystemDefinition ..........................................................................................................6 . DecliningIncentives..............................................................................................................................6 IncentiveLevelforPubliclyOwnedUtilities....................................................................................7 SystemLocationandGridInterconnection.......................................................................................7 SolarEnergySystemComponents......................................................................................................7 PerformanceMeter................................................................................................................................8 SystemSizedtoOffsetOnSiteElectricityLoad................................................................................8 SystemWarranty...................................................................................................................................8 Installation..............................................................................................................................................8 EnergyEfficiency...................................................................................................................................9 CHAPTER3:SolarEnergySystemComponentStandards............................................................10 PhotovoltaicModules.........................................................................................................................10 OtherSolarElectricGeneratingTechnologies ................................................................................11 . Inverters................................................................................................................................................12 Meters....................................................................................................................................................13 CHAPTER4:SolarEnergySystemDesignandInstallationStandardsandIncentives...........14 PerformanceBasedIncentives...........................................................................................................14 ExpectedPerformanceBasedIncentives.........................................................................................14 . HourlyPhotovoltaicProductionCalculation....................................................................................15 ReferenceSystemandLocation..........................................................................................................17 IncentiveCalculation.........................................................................................................................17

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Shading.................................................................................................................................................18 PeakLoad.............................................................................................................................................19 FieldVerification.................................................................................................................................19 Installation............................................................................................................................................19 PerformanceMonitoringandMaintenance.....................................................................................20 CHAPTER5:EnergyEfficiency...........................................................................................................21 . NewlyConstructedBuildings...........................................................................................................21 ResidentialBuildings.........................................................................................................................21 CommercialBuildings .......................................................................................................................23 . ExistingBuildings ...............................................................................................................................24 . EnergyAudit,Information,andDisclosure......................................................................................24 InformationtoBeProvidedtotheBuildingOwner/Manager/Ratepayer:........................................25 DisclosurestoBeSignedbytheBuildingOwner/Manager/RatepayerandSubmittedWiththeSolar IncentiveApplication:........................................................................................................................25 ExistingCommercialBuildingsBenchmarking,Retrocommissioning,andEfficiency Improvements......................................................................................................................................26 Benchmarking....................................................................................................................................26 Retrocommissioning ..........................................................................................................................26 . CommitmentAgreement....................................................................................................................27 EnergyEfficiencyExceptionsforExistingCommercialBuildings...................................................27 ExistingResidentialBuildings...........................................................................................................28 EnergyAuditExceptionforExistingResidentialBuildings ............................................................28 . AlternativePortfolioEnergySavings...............................................................................................28 CHAPTER6:ReportingRequirements...............................................................................................30 ReportingRequirementsBeginningin2009....................................................................................30 APPENDIX1:CriteriaforTesting,Certification,andListingofEligibleComponents...........32 PhotovoltaicModules.........................................................................................................................32 Inverters................................................................................................................................................37 Meters....................................................................................................................................................38

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APPENDIX2:FieldVerificationandDiagnosticTestingofPhotovoltaicSystems..................40 Background..........................................................................................................................................40 Responsibilities....................................................................................................................................41 FieldVerificationandDiagnosticTestingProcess.........................................................................41 . RelationshiptoOtherCodes,Standards,andVerification............................................................43 FieldVerificationVisualInspection..................................................................................................43 PhotovoltaicModules.........................................................................................................................43 Inverters.............................................................................................................................................44 SystemPerformanceMeters..............................................................................................................44 TiltandAzimuth...............................................................................................................................44 ShadingVerification............................................................................................................................48 MinimalShadingCriterion...............................................................................................................48 AccountingforActualShading.........................................................................................................50 MeasuringHeightsandDistancesorAltitudeAngles.....................................................................51 . MeasuringSolarAvailability............................................................................................................56 MatureTreeHeight...........................................................................................................................58 VerificationofSystemPerformance.................................................................................................60 . MeasuringSolarIrradiance...............................................................................................................63 MeasuringAmbientAirTemperature...............................................................................................63 ObservingACPowerOutputattheInverter....................................................................................63 MultipleOrientationArrays.............................................................................................................63 InstallerSystemInspection................................................................................................................64 APPENDIX3:SenateBill1(Murray,Chapter132,Statutesof2006)............................................65

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CHAPTER 1: Introduction
SenateBill1(SB1) 1 directstheCaliforniaEnergyCommissiontoestablisheligibilitycriteria, conditionsforincentives,andratingstandardsforprojectsapplyingforratepayerfunded incentivesforsolarenergysystems. 2 AccordingtoSB1,thisdocumentestablishesminimum guidelinestoimplementCaliforniassolarenergysystemincentiveprogramsoverseenbythe EnergyCommission,theCaliforniaPublicUtilitiesCommission(CPUC)andlocalpublicly ownedelectricutilities(POUs).Theseguidelinesarenotintendedtoserveasthesole requirementsforsolarenergysystemincentiveprograms. 3 Otherrequirementsspecifictothe EnergyCommission,CPUCandPOUprogramsareexpectedtobeaddressedanddelineatedin theirrespectiveprogramguidebooksorhandbooks. TheentitiesimplementingthesesolarenergysystemincentiveprogramsunderSB1arereferred tointhisdocumentasprogramadministrators. 4 Thesolarenergysystemincentiveprogram administratorsmustincorporatetherequirementsinthisdocumentaspartoftheirrespective programguidebooksorhandbooks. Thisdocumentcoversthesetopics: Programandlegislativebackground,andbasisforguidelines. Scheduleforimplementingtheseguidelines. Solarequipmentcomponentrequirements. Systemdesignandinstallationrequirements. Energyefficiencyrequirements. ReportingrequirementsforCaliforniapubliclyownedelectricutilities. SB1directstheEnergyCommission,inconsultationwiththeCPUC,POUs,andthepublic,to establisheligibilitycriteria,conditionsforincentives,andratingstandardsforsolarenergysystem
1SB1(Murray,Chapter132,Statutesof2006,4),ascodifiedinPublicResourcesCodesections25780 25784.SB1isanextensive,multifacetedlegislationthatcoversmanyothermattersbesidestheeligibility criteria,conditionsforincentives,andratingstandardsaddressedintheseguidelines.Theseguidelines donotaddressthoseothermatters. 2PublicResourcesCodeSection25781(e)definessolarenergysystemssubjecttotheseguidelinesas follows:Solarenergysystemmeansasolarenergydevicethathastheprimarypurposeofproviding forthecollectionanddistributionofsolarenergyforthegenerationofelectricity,thatproducesatleast1 kilowatt(kW),andnotmorethan5megawatts(MW),alternatingcurrentratedpeakelectricity,andthat meetsorexceedstheeligibilitycriteriaestablishedunderSection25782. 3Theseguidelinesdonotapplytoincentivesforsolarthermalandsolarwaterheatingdevicescovered byPublicUtilitiesCodeSection2851(b). 4Notethatthetermprogramadministratorisusedbymanytorefertotheentity(generallyautilityor thirdparty)thatisresponsiblefordaytodayprocessingofapplications,paymentrequests,andrelated tasks.

incentiveprograms.SolarenergysystemincentiveprogramsfundedbyCaliforniaelectricity ratepayersmustmeettherequirementsdirectedintheseguidelines.Thisincludessolarenergy systemincentiveprogramsestablishedbytheCPUC(CaliforniaSolarInitiative),theEnergy Commission(NewSolarHomesPartnership),andprogramsadministeredbyCaliforniasPOUs.

Background
SB1istheculminationofGovernorSchwarzeneggersMillionSolarRoofsInitiativeandbuilds ontheCPUCsCaliforniaSolarInitiative(CSI)program, 5 theEnergyCommissionsNewSolar HomesPartnership(NSHP),andexistingpubliclyownedutilitysolarenergysystemincentive programs.SB1directstotalexpendituresofupto$3,350,800,000by2017withgoalstoinstallsolar energysystemswithagenerationcapacityequivalentof3,000megawatts,toestablishaself sufficientsolarindustryin10yearssothatsolarenergysystemsareaviablemainstreamoptionfor homesandcommercialbuildings,andin13yearstoputsolarenergysystemson50percentofnew homes.Theoverallgoalistohelpbuildaselfsustainingsolarelectricitymarketcombinedwith improvedenergyefficiencyinthestatesresidentialandnonresidentialbuildings. ThreespecificexpectationsestablishedbySB1mustbemetfortheratepayerfundedincentives: Highqualitysolarenergysystemswithmaximumsystemperformancetopromotethe highestenergyproductionperratepayerdollar. Optimalsystemperformanceduringpeakdemandperiods. Appropriateenergyefficiencyimprovementsinthenewandexistinghomeorcommercial structurewherethesolarenergysystemisinstalled. Toguidethestateindevelopingasuccessfulsolarphotovoltaic(PV)programthatisconsistent withtheGovernorsMillionSolarRoofsInitiative,severalprinciplesweredescribedinthe2005 IntegratedEnergyPolicyReport(IEPR).Theseprinciplesinclude: Leveragingenergyefficiencyimprovementsshouldbeaprimaryconsiderationindeploying PVsystems.ToparticipateinthePVprogram,newbuildingsshouldberequiredtoexceed thecurrentbuildingstandards,whileexistingbuildingsshouldberequiredtoimprovetheir efficiency.CombiningenergyefficiencymeasureswithPVwillensurepropersizingofPV systems,contributetothestatesefficiencygoals,andprovidethemaximumbenefitstoPV purchasersandelectricityconsumers. RationaltargetingofPVdeploymenttoachievethegreatestcostbenefitshouldbeacentral featureofalargescalesolarprogram.Solarinstallationsshouldbetargetedtoclimatezones
5CaliforniaSolarInitiativeoftenreferstoallofthevarioussolarincentiveprogramsinthestateand addressedinSB1,includingprogramsadministeredbytheCPUC,theEnergyCommission,andthe POUs.Inthisreport,itisusedtoreferspecificallytotheCPUCsprogramthatincludessolarenergy systemincentivesfornewandexistingcommercialandexistingresidentialcustomersservedbySan DiegoGas&ElectricCompany,SouthernCaliforniaEdisonCompany,andPacificGasandElectric Company.

withhighpeakdemandsforairconditioningandwheresolarsystemscanprovidethemost benefit. Transitioningawayfromcapacitybasedincentivestoperformancebasedincentivesand integratingenergyefficiencyandtimeofuseenergyconsiderationsshouldbeapriority.

TheIEPRalsorecognizedthecommonpolicyvisionoftheloadingorderadoptedbythestates principalenergyagenciesintheEnergyActionPlanandthe2003IEPR.Theloadingorder establishesthefollowingpriorityforthedevelopmentofenergyresources:1)energyefficiencyand demandresponse,2)renewableenergyresourcesanddistributedgeneration,and3)clean,fossil fuel,centralstationgeneration.TheGovernorhighlightedtheimportanceoftheMillionSolarRoofs Initiativeandtheaggressivepursuitofallcosteffectiveenergyefficiency,consistentwiththe loadingorderinhisenergypolicytotheLegislature. TherearealsoseveralotherenergypolicydirectivesthatareimportanttoaddressastheEnergy CommissionrespondstotheSB1mandates: AssemblyBill32(AB32,Nez,Chapter488,Statutesof2006)andtheClimateAction InitiativeAB32reinforcedGovernorSchwarzeneggersExecutiveOrderS305placing Californiainagloballeadershippositionbyestablishingaggressivegreenhousegas emissionsreductiontargets.TheClimateActionTeams2006ReporttotheLegislature highlightedtheneedtoexpandenergyefficiency,coupledwithincreasedinstallationof photovoltaicsystems. EnergyEfficiencyGoalsandResourceProcurementSenateBill1037(SB1037,Kehoe, Chapter366,Statutesof2005)andAssemblyBill2021(AB2021,Levine,Chapter734, Statutesof2006)directedelectricitycorporationssubjecttotheCPUCsauthorityandlocal publiclyownedelectricutilities,respectively,tofirstmeettheirresourceneedsthroughall availableenergyefficiencyanddemandresponseresourcesthatarecosteffective,reliable andfeasible. GreenBuildingInitiativeGovernorSchwarzeneggersExecutiveOrderS2004washis firstconcretesteptopursuetheloadingorder.TheGreenBuildingInitiative(GBI)directed agenciestoreducestatebuildingelectricityuseby20percentby2015,usingallcost effectivemeasuresdescribedintheGreenBuildingActionPlan,andstronglyencourage commercialbuildingownerstotakeaggressiveactiontoreduceelectricityusewiththe samemeasures.TheGBIurgedtheCPUCtoapplyitsenergyefficiencyauthorityto improvecommercialbuildingenergyefficiencybythe20percentgoal. TheCPUCsOctober18,2007,Decision0710032,reaffirmedtheEnergyActionPlan commitmenttotheloadingorderandstatesCaliforniashighestpriorityistoincrease energyefficiencymeasures.Throughthisdecision,theCPUCadoptedgoalsfornew residentialconstructiontobenetzeroenergyby2020andnewcommercialconstructionto benetzeroenergyby2030.TheCPUCconcludedthatenergyefficiencymustbecome

businessasusualifthestateistomeetgrowingenergydemandandcombatglobal warming. Tomeetallthepolicydirectives,thegoaloftheSB1incentiveprogramsistocreateaself sustainingmarketforsolarbuildingsusinghighlevelsofenergyefficiencyandhighperforming solarenergysystems.Combininghighlevelsofenergyefficiencyandhighsolarenergysystem performancemaximizesthemajorSB1investments,helpsreducegreenhousegasemissions,and maximizesthevalueofsolarindustrysproductsandservicestoCaliforniaratepayersand consumers. Theseguidelinesestablisheligibilitycriteria,conditionsforincentives,andratingstandardsthat alignCaliforniassolarenergysystemincentiveprogramstomeettheSB1goals.

Schedule
UnderSB1,theEnergyCommissionmustestablisheligibilitycriteria,conditionsforincentives,and ratingstandardsbyJanuary1,2008.SB1alsodirectstheCPUCandthePOUstoimplementsolar energysystemincentiveprogramsforratepayerssubjecttotheirrespectivejurisdictionbyJanuary 1,2008.ThesolarenergysystemincentiveprogramsestablishedbytheCPUCandPOUsmustbe consistentwiththedirectivesofSB1andmeettheseguidelines. AsdiscussedintheEnergyCommissionsAugust2007staffreport 6 EligibilityCriteriaandConditions forIncentivesforSolarEnergySystems,SenateBill1,atransitionperiodisneededfortheCPUCand POUsolarenergysystemincentiveprogramstoconformwithalloftheeligibilitycriteria, conditions,andratingstandardsestablishedintheseguidelines. TheseguidelinescreateminimumprogramrequirementstobemetbyJanuary1,2008(Chapter2) andallowforuptoan18monthtransitionperiodforfullcompliancewithalltheeligibilitycriteria, conditions,andratingstandardsdescribedinChapters3through5.Chapter6appliesonlyto publiclyownedutilities,andtherequirementmustbemetannuallybeginningJune1,2008.All programadministratorsmustconformtheirprogramsasnecessarytotheseguidelinesnolaterthan July1,2009,exceptasnoted.Programadministratorsmayvoluntarilyconformtotheguidelines beforethatdateandareencouragedtodosototheextentfeasible.Theserequirementsshallapply onlytonewincentiveapplicationsthatarereceivedonorafteraprogramadministratorhas implementedtheserequirements.Applicationssubmittedtosolarenergysystemincentive programsforincentivesbeforeJanuary1,2008,arenotrequiredtocomplywiththeseguidelines. POUswithpeakdemandof200MWorlessasreportedforcalendaryear2006arerequiredto complywithChapters2,3,and6onlyfor2008.ThesePOUsmaydelayimplementingthe requirementsinChapters4and5;however,theymustcomplywiththerequirementsas describedinChapters4and5nolaterthanJanuary1,2010.

6CaliforniaEnergyCommission,CEC4002007014,August2007.

Audits
SenateBill1requirestheEnergyCommissiontoconductannualrandomauditsofsolarenergy systemstoevaluatetheiroperationalperformance. 7 Tocarryoutthisrequirement,theEnergy Commissionwillworkcloselywiththeprogramadministrators.

7PublicResourcesCode,Section25783(d).

CHAPTER 2: Minimum Program Requirements

ThischapterdescribestheminimumsolarprogramrequirementsestablishedinSB1andbythe EnergyCommissiontobemetbysolarenergysystemincentiveprogramadministratorsnolater thanJanuary1,2008. ProgramadministratorsshallcomplywiththerequirementscoveredinChapters3through5 regardingsolarenergysystemcomponentstandards,systemdesignandinstallationstandards, andenergyefficiencyrequirementsnolaterthanJuly1,2009.POUswithpeakdemandof200 MWorlessasreportedforcalendaryear2006shallcomplywiththerequirementsinChapters4 and5nolaterthanJanuary1,2010.

Solar Energy System Definition

Asspecifiedbythestatutorydefinition,solarenergysystemseligibleforfinancialincentives coveredbytheseguidelinesmusthavetheprimarypurposeofprovidingforthecollectionand distributionofsolarenergyforelectricitygeneration.Solarenergysystemsmustproduceatleast1 kilowatt(kW),andnotmorethan5megawatts,alternatingcurrent(AC)ratedpeakelectricity, accountingforallsystemlosses,andmeetorexceedtheeligibilitycriteriaestablishedinthese guidelines. 8 Eligiblesolartechnologiesmustprimarilygenerateelectricity.Fortheseguidelines,PVrefersto flatplatenonconcentratingphotovoltaicmodules,andothersolarelectricgenerating technologiesreferstoallsolarelectricgeneratingtechnologiesexceptflatplatenonconcentrating photovoltaicmodules. Theseguidelinesdonotapplytosolarthermalandsolarwaterheatingdevicesthatdonot primarilygenerateelectricity,butthatqualifyfortheCPUCsincentiveprogramasspecifiedin PublicUtilitiesCodeSection2851(b).

Declining Incentives
Solarenergysystemincentivesmustdeclineatarateofnolessthananaverageof7percentper yearandmustbereducedtozerobytheendof2016. 9

8PublicResourcesCode,Section25781(e). 9PublicUtilitiesCode,Section387.5(b),andPublicUtilitiesCodeSection2851(a)(1).

Incentive Level for Publicly Owned Utilities

Localpubliclyownedelectricutilitiesmustofferincentivesfortheinstallationofsolarenergy systemsbeginningatnolessthan$2.80perinstalledwatt(AC),ortheequivalentintermsof kilowatthours(kWh),onorbeforeJanuary1,2008.

System Location and Grid Interconnection

Thesolarenergysystemmustbelocatedonthesamepremiseswheretheconsumersown electricitydemandislocated.Thesystemmustbeconnectedtotheelectricaldistributiongridofthe utilityservingthecustomerselectricalload. 10

Solar Energy System Components

Allcomponentsinthesolarenergysystemmustbenewandunusedandhavenotpreviouslybeen placedinserviceinanyotherlocationorforanyotherapplication. 11 Additionstoexistingsystems areonlyallowedforsystemsthatmetprogramrequirementsatthetimeofinstallationandwere partiallyfundedbyprogramadministratorsinaccordancewithSB1andtheseSB1guidelines.For theseexistingsystems,theprogramadministratorshaverecordsanddocumentationidentifyingthe equipmentthatwasinstalledpreviously,theprogramwarranty,andthesystemequipment standardsandwarrantiesthatweremetbytheoriginallyinstalledequipment.Thenewlyadded generatingequipmentshallbeselectedfromthecurrentlistsofeligibleequipmentandmeetthe currentrequirements,includingtherequirementfora10yearwarranty.Allofthecurrentprogram eligibilitycriteriaanddocumentationrequirementsapplytotheaddedequipment. AllmajorsolarenergysystemcomponentseligibleforratepayerfundingunderSB1 12 shallbe includedontheEnergyCommissionsEligibleEquipmentLists.ThisincludesPVmodules, othersolarelectricgeneratingtechnologies,inverters,andmeters.PVmodulescurrentlylisted ontheEnergyCommissionsGoSolarCaliforniawebsite http://www.gosolarcalifornia.org/equipment/pv_modules.phpmaybeconsideredeligiblefor incentivesonlybetweenJanuary1,2008,andJune30,2009.BeginningJuly1,2009,thesePV moduleswillneedtocompletethetestingrequirementsofChapter3tocontinueeligibility. RequirementsforothersolarelectricgeneratingtechnologiesarealsoinChapter3.Information onsolarenergysystemcomponentscanbefoundathttp://www.GoSolarCalifornia.org.

10PublicResourcesCode,Section25782(a)(5)and(6). 11PublicResourcesCode,Section25782(a)(3). 12PublicResourcesCode,Section25782(c).

Performance Meter
Allsolarenergysystemsshallbeinstalledwithaperformancemeteroraninverterwithabuiltin performancemetersothatthecustomercanmonitorandmeasurethesystemsperformanceand thequantityofelectricitygeneratedbythesystem. 13

System Sized to Offset On-Site Electricity Load

Thesolarenergysystemmustbeintendedprimarilytooffsetpartoralloftheconsumersown electricitydemand. 14 Theminimumsizeofaneligiblesystemis1kWAC,accountingforallsystem losses. 15 Systemssizedbetween1kWACand5kWAC,inclusive,shallbeassumedtoprimarilyoffset thecustomersannualelectricityneeds.

System Warranty
Allsolarenergysystemsmusthaveaminimum10yearwarrantytoprotectagainstdefectsand unduedegradationofelectricalgenerationoutput. 16 The10yearwarrantyrequirementisoptional forstandaloneperformancemeters.Programadministratorshavediscretionoverhowthe10year warrantyprovisionsareimplementedundertheirrespectivesolarprograms.

Installation
Thesolarenergysystemmustbeinstalledinconformancewiththemanufacturersspecifications andincompliancewithallapplicableelectricalandbuildingcodestandards. 17 Chapter4ofthis reportestablishesinstallationstandardswhichshallbecompliedwithnolaterthanJuly1,2009, exceptwherenoted.Intheinterim,theEnergyCommissionrecommendsthatprogram administratorsstronglyencourageapplicantsforsolarincentivestofollowtheseinstallation guidelinesasmuchaspossible. AlleligiblesystemsshallbeinstalledbyindividualswithacurrentA,B,C10,orC46 contractorlicense.RoofingcontractorswithacurrentC39licensemayplacePVpanelsin accordancewiththelimitationsoftheirlicense;however,electricalconnectionsshallnotbe

13PublicResourcesCode,Section25782(a)(7). 14PublicResourcesCode,Section25782(a)(2). 15PublicResourcesCode,Section25781(e). 16PublicResourcesCode,Section25782(a)(4). 17PublicResourcesCode,Section25782(a)(8).

madebyaroofingcontractor.NorthAmericanBoardofCertifiedEnergyPractitioners (NABCEP)certificationofinstallersisencouraged,thoughnotrequired.Systemsmaybeself installedbythepurchaser(owner).

Energy Efficiency
Chapter5ofthisreportestablishesenergyefficiencyrequirements,whichshallbecompliedwith nolaterthanJuly1,2009.Intheinterim,theEnergyCommissionrecommendsthatprogram administratorsstronglyencourageapplicantsforsolarincentivestofollowtheseefficiency requirementsmeasurestothemaximumextentfeasible.

CHAPTER 3: Solar Energy System Component Standards

Thischapterestablishesratingstandardsforequipment,components,andsystemstoassure reasonableperformanceinaccordancewithSB1. 18 Settingratingstandardsandguidelinesto ensurethequalityofsystemsandcomponentsiscriticaltoasuccessfulsolarincentiveprogram andtoensureincentivesaregiventohighperformingsystems.Thethreemaincomponentsthat aresubjecttostandardsandratingsspecifictoPVinstallationsarethemodules,inverters,and meters.UntiltheequipmentistestedandlistedbytheEnergyCommission,applications specifyingtheequipmentarenoteligibleforincentivepayment. Adescriptionofthetestingcriteriaandthecriteriaforreportingperformanceofeligible equipmentisdetailedinAppendix1CriteriaforTesting,Certification,andListingofEligible Components. Therequirementsinthischaptershallbeimplementedbysolarenergysystemincentive programadministratorsnolaterthanJuly1,2009.

Photovoltaic Modules
EligiblePVmodules 19 shallberequiredtoprovidetestingdatafromindependentlaboratories toensuresafetyandhighqualitydataonmoduleperformanceinthefield.Thisdatashallalso beusedtocalculatetheexpectedperformanceofthesystem.Eligiblemodulesarelistedwith theEnergyCommission. 20 ThePVmoduleeligibilityrequirementsareasfollows: ModulesshallbecertifiedtoUL1703byaNationallyRecognizedTestingLaboratory 21 (NRTL)toensuresafetyandreliability.

18PublicResourcesCode,Section25782(c). 19Fortheseguidelines,PVreferstoflatplatenonconcentratingphotovoltaicmodules. 20ModulescurrentlyeligibleundertheserequirementsarelistedwiththeEnergyCommissiononthe followingwebsitehttp://www.gosolarcalifornia.org/equipment/pv_modules.php. 21NationallyRecognizedTestingLaboratoriesshallbethoselaboratoriesthathavebeenrecognizedby theU.S.DepartmentofLabor,OccupationalSafety&HealthAdministration(OSHA),inaccordancewith Title29oftheCodeofFederalRegulations,Section1910.7,andareapprovedtoconducttestUL1703 underthescopeoftheirOSHArecognition.AlistofallcurrentNationallyRecognizedTesting LaboratoriesisavailableonOSHAswebpageathttp://www.osha.gov/dts/otpca/nrtl/index.html.Please

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Detailedperformancedatashallbereportedandcertifiedusingthesubsectionsof InternationalElectrotechnicalCommission(IEC)Standard61215or61646(dependingonthe typeofPVsystem)atanInternationalLaboratoryAccreditationCorporation(ILAC) accreditedlaboratory. 22 TheNormalOperatingCellTemperature(NOCT)forroofintegrated,buildingintegrated photovoltaic(BIPV)productsshallbedeterminedusingthespecificationdescribedin Appendix1CriteriaforTesting,CertificationandListingofEligibleComponents.

Allcurrentlylistedphotovoltaicmodulesshallfulfilltheeligibilitycriteriatesting requirementsbyJuly1,2009,toqualifyaseligibleequipment;thereafter,thelistingwillbe updatedmonthly. 23 BetweenJanuary1,2008,andJune30,2009,performancedatabasedontest proceduresspecifiedinUL1703,Section18.1(inhouselaboratoryandflashtestdata),mayberelied upontolisteligiblemodules.

Other Solar Electric Generating Technologies

Othersolarelectricgeneratingtechnologies 24 shallbeeligibleforperformancebasedincentives (PBI)only. 25 Eligibleproductsshallprovideafullsafetycertificationwithfollowupserviceorlistingfroma NationallyRecognizedTestingLaboratory(NRTL). 26 Approvalofproductsshallrequirean investigationtodeterminewhetheranyexistingstandardsorportionsofexistingstandardsare applicable,and/orwhetherdevelopmentofnewtestprotocolsisnecessary.Determinationof applicabilityofexistingstandardsanddevelopmentofnewtestprotocolsshallbeperformedby aNRTL.ManufacturersshallsubmitallnewtestprotocolstotheEnergyCommissionfor review.TheEnergyCommissionreservestherighttochallengetheadequacyoftestprotocols
note,notalloftheNationallyRecognizedTestingLaboratoriesidentifiedonOSHAslistareapprovedto conducttestUL1703. 22AnILAClaboratoryinsideoroutsidetheUnitedStatesmaybeusedtoconductthistestingand reporting. 23Modulesthatareofidenticaltypecanbegroupedfortestingpurposeswithinarangeofpower ratings.DetailsforgroupingmodulesareprovidedinAppendix1. 24Fortheseguidelines,othersolarelectricgeneratingtechnologiesreferstoallsolarelectricgenerating technologiesexceptflatplatenonconcentratingphotovoltaicmodules. 25Futureupdatesoftheseguidelineswillconsiderinclusionofexpectedperformancebasedincentives (EPBI). 26NationallyRecognizedTestingLaboratoriesmustbeapprovedtoconducttestUL1703orUL1741 underthescopeoftheirOSHArecognition.Pleasenote,notalloftheNationallyRecognizedTesting LaboratoriesidentifiedonOSHAslistareapprovedtoconducttestUL1703orUL1741.

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foreligibilitylisting.Ifinadequaciesaredetermined,theEnergyCommissionwillconsultthe NRTLandmanufacturerbutmayultimatelynotapprovetheeligibilitylistingifinadequacies arenotresolved. Additionally,eachmanufacturershallworkwiththeappropriateprogramadministratorto determinesuitableestimatesofcapacityandenergyproductionbeforereservingfunds.

Inverters
TheinvertertestprotocoldevelopedbytheEnergyCommissiontodetermineinverter performancedatashallbeusedalongwiththeULcertificationforsafetyandreliability.The invertertestprotocolensuresthatthereportedperformancedataofefficiencyatthefullrange ofoperatingconditions(powerandefficiencyatthefullrangeofpossiblevoltages)alongwith thenighttimetarelossforeachinverterprovidesfullperformanceinformationandenables hourlyestimatingoftheoverallperformanceofthesystem. EligibleinvertersarelistedwiththeEnergyCommission. 27 Thefollowingareinvertereligibilityrequirements: InvertersshallbecertifiedtoUL1741standardsbyaNationallyRecognizedTesting Laboratory(NRTL) 28 . Performancedata(MaximumContinuousOutputPower,ConversionEfficiency,andTare Losses)testedinaccordancewithPerformanceTestProtocolforEvaluatingInvertersUsed inGridConnectedPhotovoltaicSystems 29 byaNRTLshallbereportedforeachinverter.

Whenaninverterisintegraltoandwhollycontainedwithinasolarelectricgenerator,theinverter shallnotberequiredtobeseparatelycertifiedtoUL1741ifUL1741testingisperformedaspartof afullsafetycertificationbyaNRTLforthesolarelectricgenerator.

27InverterseligibleundertheserequirementsarelistedwiththeEnergyCommissionat http://www.gosolarcalifornia.org/equipment/inverters.php. 28NationallyRecognizedTestingLaboratoriesmustbeapprovedtoconducttestUL1741underthe scopeoftheirOSHArecognition.Pleasenote,notalloftheNationallyRecognizedTestingLaboratories identifiedonOSHAslistareapprovedtoconducttestUL1741. 29Thisdocumentcanbefoundathttp://www.gosolarcalifornia.org/equipment/documents/200411 22_TEST_PROTOCOL.PDF.

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Meters
Performancemeters, 30 whetherstandaloneorintegratedwiththeinverters,shallberequiredto meetthefollowingeligibilitycriteria: Meterswith2percentaccuracyarerequiredforallperformancebasedincentive applicants. All2percentaccuracymetersshallbetestedbyaNRTLaccordingtoallapplicableANSI C12testingprotocols. Meterswith5percentaccuracy(Theseareprimarilyinverterintegrated.)shallbeallowed forexpectedperformanceincentiveapplicants. BeginningJuly1,2011,allinverterintegratedmetersshallbetestedto5percentaccuracy byaNRTL,inaccordancewithInverterIntegral5%MeterPerformanceSpecificationand TestRequirementsadoptedbytheCaliforniaPublicUtilitiesCommission. 31 Allmetersshallmeasureanddisplaybothinstantaneouspower(kWorW)andcumulative energyproduced(kWhorWh). Allmetersshallretainproductiondataduringpoweroutages. Allmetersshallbeeasytoreadforthecustomersbenefit. Allmetersshallhaveacommunicationportcapableofenablingconnectiontoremote performancemonitoringandreportingservice(PMRS).

EligiblemetersarelistedwiththeEnergyCommission. 32

30TheCPUCsCSIProgramisconsideringproposedrequirementsrelatedtometeringforsolarelectric displacingincentivesandformonitoringtheinteractionbetweenthesolarproductionmeters,renewable energycredits,advancedmeterandtimeofusemetersandothermeteringapplications.Futureupdates oftheseguidelineswillconsidertheseandsubsequentrecommendations. 31ThetestrequirementscanbefoundintheCaliforniaSolarInitiativeProgramHandbookat http://www.gosolarcalifornia.org/documents/csi.php. 32http://www.gosolarcalifornia.org/equipment/system_perf.php

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CHAPTER 4: Solar Energy System Design and Installation Standards and Incentives
SB1requireshighqualitydesignandinstallationofsolarenergysystemstopromotethe greatestenergyproductionperratepayerdollaranddirectstheEnergyCommissiontoestablish designandinstallationstandardsorincentives.Thischapterestablishestheguidelinesfor designandinstallationstandardsandincentivesneededtoachievethismandate.Program administratorsshallcomplywiththeseguidelinesbynolaterthanJuly1,2009.POUswith peakdemandof200MWorlessasreportedforcalendaryear2006shallcomplywiththe requirementsinthischapternolaterthanJanuary1,2010. Toachievehighperformingsolarenergysystems,theincentivestructuresshallbe performancebasedtorewardperformance.Therearetwoacceptableperformancebased approaches:theperformancebasedincentive(PBI)approachandtheexpectedperformance basedincentive(EPBI)approach.Thesearediscussedfurtherinthischapter.

Performance-Based Incentives
ProvidingaPBI 33 isthepreferredwaytopromotehighperformingsystemssincethesolar energysystemsreceiveincentivesbasedontheiractualproduction(kWh)overtheperiod duringwhichtheincentivesarebeingpaid.ThePBIincentivepaymentiscalculatedby multiplyingtheincentiverate($/kWh)bythemeasuredkWhoutput. ThePBIpaymentsshallbemadeoveraminimumfiveyearperiodfollowingsystem installation,submission,andapprovalofincentiveclaimmaterials.Paymentsshallbebasedon a$/kWhincentiverateandtheactualelectricity(kWh)producedinperiodsestablishedbythe programadministrator.

Expected Performance-Based Incentives

Theexpectedperformancebasedincentive(EPBI)approachpaysanupfrontincentivethatis basedoncalculatedexpectedperformance,takingintoaccountallmajorfactorsthataffect performanceoftheparticularinstallationinthegivenlocation.Thisincentivemethodmaybe moreappropriatethanaPBIapproachforsystemsinstalledonnewlyconstructedbuildingsor forsmallersystems.TheEPBIapproachshallbeusedforsystemsthatdonotusethePBI approach.
33Asanexample,theCPUCsCaliforniaSolarInitiativeprogramrequireslargersolarenergysystems (e.g.,those100kWACorlargercapacitybeginningin2007)tousePBI.TheCSIprogramalsorequiresPBI forsystems50 kWACandlargerbeginningJanuary1,2008,andforsystems30kWACandlargerbeginning January1,2010.ProjectsbelowthesesizethresholdsmayvoluntarilyusethePBIapproach.

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TomeettheexpectationsofSB1foroptimalsystemperformanceduringperiodsofpeak demandandIEPRpolicytotargetPVdeploymenttoachievethegreatestcostbenefit,EPBI shallbebasedontimedependentvalue(TDV)weightedhourlygeneration. 34 TheEPBIcalculationshallbebasedonhourlymodelingoftheinteractiveperformanceofsolar energysystemsusingthethirdpartytestedperformancecharacteristicsofthespecificmodules andtheinverterovertherangeofconditionsthatimpactcomponentperformance.This calculationaddressesallinstallationcharacteristicsthatareexpectedtohavesignificantimpacts ontheperformanceofthecomponentsandthesolarradiation,ambienttemperature,andwind conditionsexpectedatthesite. Thehourlyperformanceofthesystemshallbebasedontheinteractionofthecomponentsdue totheexpectedconditionsduringeachhour.Thehourlyproductionshallbeweightedineach hourtoaccountforthetimedependentvaluetotheutilityofthathoursproductiontoobtain theannualtimedependentweightedenergyresultsforthesystem(kWhTDV).Thetotalincentive forthesolarenergysystemisbasedupontheannualkWhTDVperformance.

Hourly Photovoltaic Production Calculation

ThePVproductionshallbecalculatedusingamodelthatcomplieswiththefollowing minimumrequirements: Thecalculationmodelshallcoverfixedflatplatecollectortechnologiesata minimumandincludesingleanddualaxistrackingiftheprogramadministrators allowforthesetechnologiestobeincentivizedundertheEPBIapproach. 35 Usehourlyweatherdataforoneofthe16climatezonesinCalifornia,withtheuseof solarradiation(globalhorizontal,directnormal,anddiffuse),drybulbtemperature, andwindspeedasminimumparametersincalculationtodescribetheconditionsfor thehour. Determinetheincidentsolarradiationonthemodulesbasedontheazimuthandtilt angleoftheinstallationusingtheweatherdataandlocationlongitudeandlatitude information. Usethedetailedperformancecharacteristicsdataformodules(listedinAppendix1, Table1)indeterminingthehourlyproductionatgivenconditionsforthehour(both weatherandelectrical).Thisdatashallbeobtainedfromthelibraryofeligible moduleslistedwiththeEnergyCommission.

34InformationonTDVcanbereferencedat http://www.energy.ca.gov/title24/2008standards/prerulemaking/documents/E3/index.html. 35SystemsemployingtrackingmaybeofferedincentivesusingthePBIapproachasanalternativeto developingacalculationofexpectedperformanceforthesesystems.

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Havetheabilitytodeterminetheoperatingvoltageofasystematagivenhourby discerningthecircuitdesignofthesystemintermsofthenumberofmodulesineach stringandthenumberofstrings. Accountforthemountingoffsetofthearrayfromasurfacebelowtoassessthe changeinoperatingtemperature(NormalOperatingCellTemperatureimpact).This isespeciallyimportanttodeterminetheperformanceofbuildingintegrated photovoltaics(BIPV),ascomparedtorackmountedmodules. Accountfortheheightabovethegroundthatthearrayismountedtocapturethe impactofwindspeedonthemoduleoperatingtemperature. Usedetailedperformancedataforinverters(performancecurvesoverrangeof voltageandpowerconditionsapplicable)indeterminingthehourlyproductionat givenconditionsforthehour(bothweatherandelectrical).Thisdatashallbe obtainedfromthelibraryofeligibleinverterslistedwiththeEnergyCommission. 36 Limittheproductionofthesystembasedonthesizeandvoltageofthearrayand invertervoltageandpowercapacity. GeneratehourlyestimatesofPVproductionfortheentireyear,whichcanthenbe weightedbytimedependentvalue(TDV)multipliers. Determinethesolarpositionforeachhouroftheyearintermsofaltitudeand azimuth(usedtodeterminetheimpactofshadingfromanobstruction). Determinethehourlyimpactofshadingfromobstructionsusingashadingprotocol asdescribedinShadingVerification,Appendix2. Reporttheeffectivehourlyproductionvaluesfortheentireyearafterfactoringthe impactofshadingandapplyingtheappropriateTDVmultipliersfortheclimate zoneandbuildingtype(residentialornonresidential). Generateaperformanceverificationtableforeachspecificsystemthatreportsthe expectedproductionforthespecificsystemandinstallationasafunctionofincident solarradiationandambienttemperature.Thisperformanceverificationtableshall enablefieldverificationofactualvs.expectedinstantaneousproductionthroughthe comparisonoftheoutputreportedbytheperformancemetertothevalueinthe performanceverificationtableatthespecificincidentradiationandambient temperaturemeasuredatthesiteatthetimeoftheverification. Generateacertificateofcomplianceformasaprintablereport 37 .Thecertificateof complianceshallinclude,ataminimum,theentiresystemdescriptionincluding installationspecificsforthesystem,location,shadingdetails,echoalltheinputsfor thecalculation,andtheperformanceverificationtable.

36ThelistofeligibleinvertersreferredhereisthelistmaintainedbytheEnergyCommissionat http://www.gosolarcalifornia.org/equipment/inverters.php. 37Aprogramadministratormaychoosenottorequirethesubmissionofthiscompliancecertificatealong withtheincentiveapplication.

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Reference System and Location

Theincentivecalculationshalluseareferencesystemandlocationestablishedbytheprogram administratortoconvertanincentivelevelestablishedintermsof$/Wtothe$/kWhTDV equivalentthroughthefollowingcalculation:

$/kWh TDV =

Reference System Watts CEC-AC $/Watt (incentive level) Reference System Annual kWh TDV

Thespecificationofthereferencesystemshallinclude: 38 Locationofthesystemtodeterminetheweatherdataandcorrespondingapplicable TDVfactorstobeused. Sizeofasystemthatisrepresentativeofthemedianintheapplicableutilityprogram. SelectionofareferencemodulefromtheEnergyCommissionsEligibleEquipmentList, alongwithallitsperformancecharacteristics,thatisconsideredasamedianforthe applicableutilityprogram. SelectionofaninverterfromtheEnergyCommissionsEligibleEquipmentListthatis consideredamedianfortheapplicableutilityprogram. Theinstallationcharacteristicsthatcomprehensivelydescribethesystem,including,but notlimitedto: o Azimuth o Tilt o Mountingoffset(BIPVorrackwithspecificheightabovesubstrate) o Heightaboveground(onestoryorhigher) o Electricalcircuitdesign(modulesperstringandnumberofstrings) o Shadingconditions(minimalshading) o Othersystemlosses(suchasdirt,dust,andwiringlosses) The$/kWh TDV(orthe$/Wbeforetheaboveconversion)shallbechosentoensurethatthefull rangeofimprovementinperformance(inkWhTDV)isprovidedwithincreasingincentives.

Incentive Calculation
ThetotalincentivefortheapplicantsystemshallbedeterminedbymultiplyingtheTDV weightedannualkWhproductionwiththe$/kWhTDVdeterminedinthepreviousstep(usingthe referencesystem) 39 .
38Foranexampleofareferencesystemspecification,seetheEnergyCommissionsNewSolarHomes PartnershipGuidebookathttp://www.gosolarcalifornia.org/documents/nshp.php. 39Theprogramadministratormayadoptatoleranceof5percentforapprovingtotalincentive payments.Theprogramadministratormayallowvariationsinincentivesamountamongtheincentive application,fieldverifiedperformanceandpaymentclaimrequestsuptothistolerance.

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Total Incentive $ = Applicant System Annual kWh TDV $/kWh TDV

ThebasicstructureoftheEnergyCommissionsPVcalculator 40 canbeusedtomeetthese requirements.Thecalculatorcanbemodifiedoranothercalculatorused,aslongasitmeets requirements1through15oftheHourlyPhotovoltaicProductionCalculation.Thereference systemandlocationandtheincentivelevelarespecifiedbytheprogramadministrator.POU programadministratorsmayusetimeofusemultipliersthatareapplicabletotheirservice territoriesinsteadofTDV. EXCEPTION:TheCPUCandPOUProgramAdministratorsarenotrequiredtocomplywith theaboveHourlyPhotovoltaicProductionCalculationrequirementsbyJuly1,2009.TheCPUC shoulddeterminewhetheritbelievesthatchangesshouldbemadetotheCPUCsCSI calculationmethodsandunderwhattimeframeitwouldmakechanges.POUProgram AdministratorsmaychoosetouseacalculationmethodthatcomplieswiththeHourly PhotovoltaicProductionCalculationrequirementsortheexpectedperformancebasedincentive calculationmethodusedbytheCPUC.TheEnergyCommissionstronglyencouragesthe CPUCsCSIprogramtoupgradeitscurrentmethodsforestimatingtheexpectedperformance ofsolarelectricgeneratingsystemstobetterpromotehighqualitysolarenergysystemswith maximumsystemperformancetopromotethehighestenergyproductionperratepayerdollar andtoachieveoptimalsystemperformanceduringperiodsofpeakelectricitydemand.The EnergyCommissionrecommendsthatastheCPUCupgradesitscalculationmethods,it endeavorstomeetthehourlyphotovoltaicproductioncalculationprovisionsofthese guidelines.POUprogramadministratorswhochoosetousetheCPUCsexpectedperformance basedincentivescalculationmethodareexpectedtouseimprovedversionsthatareupdatedto bettermeetthehourlyphotovoltaicproductioncalculationprovisions.TheCPUCshallcomply withtheshading,performanceverification,andfieldverificationrequirementsofthese guidelines.

Shading
Themethodthatshallbeusedastheminimumcriteriaforaddressingshadingisdetailedin Appendix2FieldVerificationandDiagnosticTestingofPhotovoltaicSystems.

40ThecurrentimplementationoftheEnergyCommissionPVcalculatorisaspreadsheetbasedtooland runsthefiveparameterPVmodeltodeterminethehourlyproduction.Thecalculatorwillbemade availableuponrequesttoanyprogramadministrator.

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Peak Load
Forsystemsreceivingincentivesundertheexpectedperformancecalculationapproach,the incentiveshallbebasedonweightingthehourlyproductionwithTDVfactorstopromote systemswithhigherperformanceatpeakloadconditions.TDVfactorshavebeendevelopedfor the16BuildingEnergyEfficiencyStandardsclimatezonesinCaliforniausingIOUgeneration, transmission,anddistributioncostdata. 41 POUprogramadministratorsshoulduseeithertheTDVfactorsdeterminedforthe16climatezonesor hourlytimeofuseweightingfactorsthatareapplicablefortheirserviceterritories.

Field Verification
Tobeeligibleforincentivepayment,EPBIapplicantsandPBIapplicantswhosesystemsare smallerthan50kWshallberequiredtosuccessfullycompletethirdpartyfieldverificationona samplingbasis.FieldverificationisencouragedforotherPBIapplicants.Thefieldverification, ataminimum,shallincludevisualinspectionofcomponents,installationcharacteristics,and shadingconditions.ForEPBIsystemsonly,performanceshallbeverifiedusingtheprotocol describedinAppendix2FieldVerificationandDiagnosticTestingofPhotovoltaicSystems. Thethirdpartyfieldverificationshallbecarriedoutonaminimumsamplesizeofoneinseven byaqualifiedHomeEnergyRatingSystem(HERS)rater,theprogramadministrator,ora designatedqualifiedcontractor,asdeterminedbytheprogramadministrator.

Installation
Theinstallersshallcertifyallaspectsoftheinstallationusingtheprotocolforfieldverification (Appendix2).Thisincludestheactualcomponentsused,theinstallationcharacteristics,shading conditions,andthespecifiedonsiteinstantaneousperformanceverification.Thesameprotocol willbeusedbyboththeinstallerandtheverifier,withthedifferenceoftheinstallerhaving betteraccesstotheinstallationinsomecases.Itwillbetheresponsibilityoftheinstallerto documentallproofforitemsthatmaybemoreeasilyobservedandmeasuredbytheinstaller thanbytheverifier. EXCEPTIONS:Theprogramadministratormaywaivetheinstallerrequirementtofollowthe fieldverificationprotocolunderanyoneofthefollowingconditions: 1. Theprogramrequiresfieldverificationon100percentofthesystems(withoutusing samplingapproach).
41MoreinformationonTDVcanbereferencedat http://www.energy.ca.gov/title24/2008standards/prerulemaking/documents/E3/index.html.

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2. TheinstallerfollowsthealternateprotocoldescribedinInstallerSystemInspection, Appendix2,andsignsacertificateofhavingcompletedthesame.

Performance Monitoring and Maintenance

AllsystemsusingthePBIapproachshallhaveafiveyearservicecontract 42 withaperformance monitoringandreportingservice(PMRS). 43 ForsystemsusingtheEPBIapproach,aPMRSshallberequirediftheprogramadministrator determinesthatitiseconomicallyreasonable,comparingthecostofavailablePMRStothecost capsshowninthetablebelow.

EPBI < 30kW EPBI 30kW and greater PBI

5% accuracy meters Required Required N/A

2% accuracy meters Optional Optional Required

PMRS Cost cap 1% of entire system Cost cap 0.5% of entire system Required

Forallsystems,itisrecommendedthatprogramadministratorsensurethatinformation regardingsystemmaintenanceisprovidedtotheownerorfacilitymanagerofthepropertywho hasoversightofthesystem.Theinformationshouldaddress,ataminimum,thefollowing considerations: Cleaningscheduleforthearraytoremovedirtanddustbuildup. Periodiccheckingofelectricalconnections(forcorrosion,andsoforth). Checkingtheinverterforinstantaneouspower,longtermenergyoutput,anddiagnosing andtakingcorrectiveactionifproductionissignificantlylowerthanexpected. Checkingfortree/plantgrowthorotherobstructionsthatarecausingshadingonthearray andadvisehowtominimizeoreliminatethatshading.

42TheapplicanthastheoptionofswitchingPMRSprovidersduringthisperiod,ifnecessary,butmust demonstratethattheminimumfiveyeartermofPBIpaymentsiscoveredthroughoneoranotherPMRS provider. 43TheCPUCsCSIprogramiscurrentlydevelopingrequirementsrelatedtothespecificationofthedata streams.Theserequirementswillbeconsideredforpossiblefutureupdatestotheseguidelines.

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CHAPTER 5: Energy Efficiency

Thischapterspecifiesenergyefficiencyrequirementsthatshallbemetasconditionsfor ratepayerfundedincentivesfornewlyconstructedandexistingresidentialandcommercial buildings.Thechapteridentifiesseparateenergyefficiencyrequirementsforeachtypeof building.Asanalternativetomeetingtheserequirementsforspecificbuildings,program administratorsmaychoosetousetheAlternativePortfolioEnergySavingsApproachdescribed attheendofthischapter.Theenergyefficiencyrequirementsspecifiedinthischapterare minimumrequirements.Programadministratorsareencouragedtopromotegreaterlevelsof energyefficiencyastheyfindfeasible. ProgramadministratorsshallcomplywiththerequirementsinthischapternolaterthanJuly1, 2009.Publiclyownedutilities(POUs)withpeakdemandof200MWorlessasreportedfor calendaryear2006shallcomplywiththerequirementsinthischapternolaterthanJanuary1, 2010.

Newly Constructed Buildings

MinimumenergyefficiencycriteriabeyondCaliforniasBuildingEnergyEfficiencyStandards (Title24,Part6)shallbeconditionsforthesolarenergysystemincentiveprogramsoverseenby theCPUC,theEnergyCommission,andPOUsforallnewlyconstructedbuildingsstatewide. 44

Residential Buildings
Newlyconstructedresidentialbuildingsshallachievehigherenergyefficiencylevelsthanthe requirementsoftheBuildingEnergyEfficiencyStandards(Title24,Part6)ineffectatthetimethe applicationforabuildingpermitissubmitted. ForbuildingpermitssubmittedbeforeJanuary1,2010,theapplicantisrequiredtomeeteitherof thefollowingtwotiersofenergyefficiency: TierI15percentreductionintheresidentialbuildingscombinedspaceheating,space cooling,andwaterheatingenergycomparedtothe2005Title24Standards. 45

44Newlyconstructedbuildingsareonesforwhichthebuildingpermitforthesolarenergysystemis approvedpriortotheoriginaloccupancyofthenewlyconstructedstructure.

45TierIwasdevelopedtomatchtheenergyefficiencyrequirementsoftheNewConstructionPrograms forinvestorownedutilitiessuchasthoseimplementedbyPG&E,SCE,andSDG&E.

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TierII35percentreductionintheresidentialbuildingscombinedspaceheating,space cooling,andwaterheatingenergyand40percentreductionintheresidentialbuildings spacecoolingenergycomparedtothe2005Title24Standards. 46

ForbuildingpermitssubmittedonorafterJanuary,1,2010,theapplicantisrequiredtomeeteither ofthefollowingtwotiersofenergyefficiency: TierI15percentreductionintheresidentialbuildingscombinedspaceheating,space cooling,andwaterheatingenergycomparedtothe2008Title24Standards. 47 TierII30percentreductionintheresidentialbuildingscombinedspaceheating,space cooling,andwaterheatingenergyand30percentreductionintheresidentialbuildings spacecoolingenergycomparedtothe2008Title24Standards. 48

TheTierIlevelisaminimumconditionforparticipation.TierIIistheEnergyCommissions preferredlevelthatbuildersareencouragedtomeet.ForeitherTierIorII,eachapplianceprovided bythebuildershallbeENERGYSTAR49 labeledifthisdesignationisapplicableforthatappliance. Solarwaterheatingmaybeusedtoassistinmeetingtheenergyefficiencyrequirementsofeither TierIorTierII. 50 FieldverificationofenergyefficiencymeasuresshallberequiredandbeconsistentwithTitle24 Standardsfieldverificationproceduresandprotocolsineffectatthetimetheapplicationfora buildingpermitissubmitted.TheCF1R 51 formusedtodemonstrateTitle24compliancewiththe currentBuildingEnergyEfficiencyStandardsshallbeprovidedwiththesolarincentiveapplicationto theprogramadministratorasproofofattainmentoftheTierIorTierIIlevel.Compliance
46TierIIwasdevelopedtoencouragebuilderstogobeyondtheminimumrequirementsofTierI.TierII efficiencylevelwasdevelopedtomatchtheBuildingAmericaprogramrequirements. 47TierIwasdevelopedtomatchtheenergyefficiencyrequirementsoftheCaliforniaGreenBuilding Standards(Title24,Part11). 48TierIIwasdevelopedtoencouragebuilderstogobeyondtheminimumrequirementsofTierI.TierII efficiencylevelwasdevelopedtoachieveenergyefficiencybestpracticestoalignwiththeIntegrated EnergyPolicyReport(IEPR)andtheCaliforniaPublicUtilitiesCommission(CPUC)StrategicPlan initiatives. 49ENERGYSTARisajointprogramoftheU.S.EnvironmentalProtectionAgencyandtheU.S. DepartmentofEnergy.AnENERGYSTARdesignationisavailableforappliancesthatexceedminimum federalenergyefficiencystandards.FormoreinformationontheENERGYSTARdesignation,goto http://www.energystar.gov. 50Formoreinformationonusingsolarwaterheatingtomeettheenergyefficiencyrequirements,please refertotheGoSolarCaliforniawebsitehttp://www.gosolarcalifornia.org/solarwater/nshp/index.php. 51ThisCertificateofComplianceformsummarizestheminimumenergyperformancespecifications neededforcomplianceincludingtheresultsoftheheatingandcoolingloadcalculations.

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documentsshallbecompletedbypersonswhoareCertifiedEnergyPlansExaminers(CEPE)bythe CaliforniaAssociationofBuildingEnergyConsultants(CABEC). Investorownedutilities(IOUs)fundenergyefficiencyprogramsthroughapublicgoodscharge (PGC)withprogramoversightbytheCPUC.POUsconductandoverseetheirownenergy efficiencyprograms.IOUsandPOUsarestronglyencouragedtoprovideenergyefficiency incentivesforeachtierdescribedintheseguidelines.

Commercial Buildings
Newlyconstructedcommercialbuildings 52 shallachievehigherenergyefficiencylevelsthanthe requirementsoftheBuildingEnergyEfficiencyStandards(Title24,Part6)ineffectatthetimethe applicationforabuildingpermitissubmitted. ForbuildingpermitssubmittedbeforeJanuary1,2010,theapplicantisrequiredtomeeteitherof thefollowingtwotiersofenergyefficiency: TierI15percentreductioninthecommercialbuildingscombinedspaceheating,space cooling,lighting,andwaterheatingenergycomparedtothe2005Title24Standards. 53 TierII30percentreductioninthecommercialbuildingscombinedspaceheating,space cooling,lighting,andwaterheatingenergycomparedtothe2005Title24Standards. 54 ForbuildingpermitssubmittedonorafterJanuary1,2010,theapplicantisrequiredtomeeteither ofthefollowingtwotiersofenergyefficiency: TierI15percentreductioninthecommercialbuildingscombinedspaceheating,space cooling,lighting,andwaterheatingenergycomparedtothe2008Title24Standards. 55 TierII30percentreductioninthecommercialbuildingscombinedspaceheating,space cooling,lighting,andwaterheatingenergycomparedtothe2008Title24Standards. 56
52Fortheseguidelines,commercialbuildingsincludeallnonresidentialbuildingsandstructures. 53TierIwasdevelopedastheminimumlevelofparticipationtomatchtheLeadershipinEnergyand EnvironmentalDesign(LEED)NewConstructionEnergyandAtmosphereprerequisite. 54TierIIwasdevelopedtoencouragedeveloperstogobeyondtheminimumrequirementsofTierI.Tier IIisinlinewiththe2030Challengehttp://www.architecture2030.org. 55TierIwasdevelopedastheminimumlevelofparticipationtomatchtheenergyefficiency requirementsoftheCaliforniaGreenBuildingStandards(Title24,Part11) 56TierIIwasdevelopedtoencouragedeveloperstogobeyondtheminimumrequirementsofTierI.Tier IIenergyefficiencylevelwasdevelopedtoachieveenergyefficiencybestpracticestoalignwithIEPRand CPUCStrategicPlaninitiatives.

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TheTierIlevelisaminimumconditionofparticipation.TierIIistheEnergyCommissions preferredlevelthatbuildersareencouragedtomeet.ForeitherTierIorII,anyequipmentor applianceprovidedbythebuildershallbeENERGYSTARlabeledifthisdesignationisapplicable tothatequipmentorappliance. Solarwaterheatingmaybeusedtoassistinmeetingtheenergyefficiencyrequirementsofeither TierIorTierII. 57 CompliancedocumentsusedtodemonstrateTitle24compliance,includingthePERF1form 58 and accompanyingsupportingforms,shallbeprovidedasproofofattainmentoftheTierIorTierII levels.CompliancedocumentsshallbecompletedbypersonswhoareCertifiedEnergyPlan Examiners(CEPE)bytheCaliforniaAssociationofBuildingEnergyConsultants(CABEC). Forcommercialbuildingsthatareconstructedinphaseswiththeshellbuiltfirstandfurtherenergy systemsinstalledinlaterphasesastenantimprovements,anagreementshallbemadebetweenthe buildingowner 59 andthetenant.Thisagreementshallobligatefuturetenantimprovementsto installlighting,HVAC,andwaterheatingequipmentnecessarytomeettheoverallbuildingtier levelthatwascommittedtobythebuildingowner.Acopyoftheagreementshallbeincludedwith thesolarenergysystemincentiveapplication. Investorownedandpubliclyownedelectricutilitiesarestronglyencouragedtoprovideenergy efficiencyincentivesforeachtierdescribedintheseguidelines.

Existing Buildings
Energy Audit, Information, and Disclosure
Specificinformationaboutenergyefficiencymeasuresshallbeprovidedtothebuildingowner.The intentoftheinformationisforthepersonwhoisresponsibleforpayingtheutilitybillandthe personwhoisresponsibleforbuildingoperationstoreceiveinformationon:1)theirbuildings energyuse,2)energyefficiencyinvestigationoptionsfortheirbuildings,and3)possibleenergy efficiencyimprovements.Thesepersonsmaynotbethesameentityforallapplications.Forthese guidelines,thesepersonsarereferredtoasthebuildingowner/manager/ratepayer. Theprogramadministratorortheutilitiescoveredbytheprogramadministratorsshallprovide informationtothebuildingowner/manager/ratepayerbeforethedesignandinstallationofany proposedphotovoltaicsystemtoenablethebuildingowner/manager/ratepayertomakeinformed decisionsonenergyefficiencyinvestments.Thebuildingowner/manager/ratepayershallsignand

57Formoreinformationonusingsolarwaterheatingtomeettheenergyefficiencyrequirements,please refertotheGoSolarCaliforniawebsitehttp://www.gosolarcalifornia.org/solarwater/nshp/index.php. 58ThePERF1formisthePerformanceCertificateofCompliancethatisproducedbycompliance softwareusedtoshowcompliancewithTitle24. 59Anagreementmaybemadewithadeveloper/propertymanagerandthetenant.

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providetotheprogramadministratoracopyofthesigneddisclosurethatcertifiesthatthis informationwasprovidedtohimandidentifieswhich,ifany,energyefficiencymeasureswillbe taken.Ifmeasuresaretobeinstalledaftertheinstallationofthesolarenergysystem,thenthe buildingowner/manager/ratepayershalldeclareonthedisclosurewhenthemeasuresareexpected tobeinstalled. 60 Forexistingcommercialbuildingswithconditionedfloorareaoflessthan100,000squarefeetand forexistingresidentialbuildings,anenergyefficiencyauditshallbeconducted.Theprogram administratormayallowonlineortelephoneauditsormayrequireonsiteenergyaudits,asthey specifyforparticularcategoriesofcustomers.Buildingowners,managers,and/orratepayersshall beresponsibleforsubmittingacopyoftheauditresultswiththeirsolarincentiveapplications.The informationanddisclosureshallbeprovidedtothebuildingowner/manager/ratepayerviaaWeb basedinformationportalorpaperformat.Thebuildingowner/manager/ratepayershallcomplete andsignthedisclosureformandsubmitacopytotheprogramadministrator.

Information to Be Provided to the Building Owner/Manager/Ratepayer:

Mostrecent12monthsofthebuildingsenergyconsumptionthisinformationmaybe provideddirectlybytheutility;ifso,theprogramadministratorisobligatedtoassureonly thatitwasprovided. Listofbuildingenergyuseassessmentservicesandtoolsavailableforusebythebuilding ownerforfurtherinvestigationforcommercialbuildingsthisshallincludeinformationon availableretrocommissioningservices. Listofpossiblecosteffectiveenergyefficiencymeasuresapplicabletothebuilding. Listofcurrentutilityenergyefficiencyrebatesandincentivesthatareavailable.

Disclosures to Be Signed by the Building Owner/Manager/Ratepayer and Submitted With the Solar Incentive Application:
Certificationthatthebuildingowner/manager/ratepayerhasreceivedtheabove information. Theenergyuseassessmentservicesortoolsthebuildingowner/manager/ratepayerusedto identifycosteffectiveenergyefficiencymeasuresthatcouldbeinstalledinthebuilding. Theenergyefficiencymeasuresthathavebeeninstalled,orwillbeinstalledpriortoorin conjunctionwiththeinstallationofthesolarenergysystem. Ifenergyefficiencymeasuresareplannedtobeinstalledatalatertime,thedatebywhich thesemeasuresareplannedtobeinstalled. Acopyoftheenergyauditreportforexistingresidentialbuildingsandcommercial buildingslessthan100,000squarefeet.

60Thedatagatheredasaresultoftheinformationanddisclosureprocesswillbeusedtodevelopfuture energyefficiencyrequirementsforsolarenergysystemincentiveprograms.

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Existing Commercial Buildings Benchmarking, Retrocommissioning, and Efficiency Improvements

Benchmarking
Forsolarenergysystemstobeeligibleforincentiveswheninstalledtoserveanexistingcommercial building,theenergyuseintensity(EUI)shallbebenchmarked 61 usingPortfolioManagerorthe equivalentenergyperformanceratingforbuildingtypesthatcannotreceivearatingbyPortfolio Manager.PortfolioManagercanbeaccessedontheInternetat https://www.energystar.gov/istar/pmpam/. BuildingtypesthatarenotabletoreceiveanenergyperformanceratingusingPortfolioManager shallbebenchmarkedusingtheEnergyCommissionsequivalentenergyperformancerating system. 62

Retrocommissioning
Retrocommissioning 63 shallberequiredforallexistingcommercialbuildingsthatare100,000 squarefeetorlargerandhaveabenchmarkratingoflessthan75,oranequivalentenergy performanceratingasdeterminedbytheEnergyCommission.Retrocommissioningisrequiredto beginnolaterthanoneyearafterthecompletionoftheinstallationofthePVsystem.Systemstobe retrocommissionedincludebutarenotlimitedto: Heating,ventilation,andairconditioningsystemsandcontrols. Lightingsystemsandcontrols. Daylightingsystemsandcontrols. Domestichotwatersystemsandcontrols. Renewableenergysystemsandassociatedequipmentandcontrols.
61Benchmarkingisaprocessthatcomparestheenergyuseofthebuildingtotheenergyuseofa populationofsimilarbuildings. 62TheEnergyCommissionisworkingwithUSEPAonanequivalentratingsystemthatcanbeusedto benchmarkcommercialbuildingsnotabletoberatedusingPortfolioManager. 63Retrocommissioningisaprocesstoidentifyhowmajorenergyusingequipmentisbeingoperatedand maintainedandtoidentifyspecificimprovementstotheperformanceofthoseenergyusingsystems.The processusesawholebuildingsystemsapproachtoidentifyproblemsandneededrepairsoradjustments toachieveenergysavings,occupantcomfortandimprovedsystemsperformance.Acommissioningagent identifiesandmakesthenecessaryequipmentadjustmentsandidentifiesenergyefficiencyprojectsthat willimproveoverallbuildingperformance.Forfurtherinformationregardingthebenefitsof retrocommissioning,seetheCaliforniaCommissioningGuide:ExistingBuildings,CaliforniaCommissioning Collaborative,2006at http://www.cacx.org/resources/documents/CA_Commissioning_Guide_Existing.pdf.

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Processequipmentandappliancesspecifictohospital,restaurant,andhotel/motel operations. Refrigerationinsupermarketandrefrigeratedwarehouses.

Equipmentrepairsandadjustmentsandcosteffectiveenergyefficiencymeasuresidentifiedinthe buildingretrocommissioningassessmentshallbeimplementedtoimprovethebuildingsenergy performancerating.Ifabuildingisimprovedtoexceedaratingof75,furtherenergyefficiency measuresarenotrequired.Abuildingdoesnotneedtoberebenchmarkedtoreceiveanincentive. Ifequipment/appliancereplacementisrecommendedduringtheretrocommissioningprocess,the replacementshallbemadewithENERGYSTARequipmentorappliances,orequipmentor appliancesthatqualifyforutilityenergyefficiencyincentives,whicheverismoreefficient.IOUs andPOUsarestronglyencouragedtoprovideenergyefficiencyincentivesforretrocommissioning andfortheinstallationofcosteffectiveenergyefficiencymeasures,appliancesandequipment.

Commitment Agreement
Forbuildingsequaltoorlargerthan100,000squarefeetandwithabenchmarkorequivalent energyperformanceratingoflessthan75,retrocommissioning,equipmentrepairsandadjustments, andenergyefficiencyimprovementsthatareidentifiedthrougharetrocommissioningassessment shalleitherbecompletedpriortoorinconjunctionwiththeinstallationofthesolarenergysystem. Alternatively,retrocommissioningshallbecommittedtobecompletedatalaterdatebythe buildingowner/manager/ratepayerthroughacommitmentagreement.Thecommitmentagreement shallindicatewhentheretrocommissioningwillbegin,andcommittheowner/manager/ratepayer tocompleteequipmentadjustments,orcosteffectiveefficiencyimprovementsidentifiedinthe retrocommissioningassessment.Theretrocommissioningshallbeginnolaterthanoneyearafter thecompletionoftheinstallationofthePVsystem.

Energy Efficiency Exceptions for Existing Commercial Buildings

Thespecificenergyefficiencyrequirementsintheseguidelinesforexistingcommercial buildingsarenotrequiredforthefollowing: AgriculturalandindustrialfacilitiesthatarenotcoveredbyPortfolioManagerorthe EnergyCommissionsequivalentbenchmarkratingarenotrequiredtobebenchmarked. Energyefficiencyisnotrequiredtobeaddressedwhensolarenergysystemsarenot servingelectricitytoabuilding. Theenergyaudit,benchmarking,andretrocommissioningarenotrequiredforbuildings thathavecompliedwithTitle24requirementsfornewlyconstructedbuildingsduring thelast12monthspriortoapplyingforthesolarenergyincentive;proofofTitle24 complianceshallbeincludedwiththesolarenergysystemincentiveapplication. Retrocommissioningisnotrequiredforexistingcommercialbuildingsthathavea currentENERGYSTARlabel.

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RetrocommissioningisencouragedbutnotrequiredforPBIapplicants.

Existing Residential Buildings

Forsolarenergysystemsservinganexistingresidentialbuilding,theenergyaudit,information, anddisclosurerequirementsshallbemetasdiscussedabove.

Energy Audit Exception for Existing Residential Buildings

TheenergyauditisnotrequiredforbuildingsthathavecompliedwithTitle24requirementsfor newlyconstructedbuildingsinthepastthreeyearsbeforeapplicationforasolarenergyincentive; proofofTitle24complianceshallbeincludedwiththesolarenergysystemincentiveapplication. Thereisnoexceptionfortheotherinformationanddisclosurerequirements.

Alternative Portfolio Energy Savings

Asanalternativetotherequirementsdiscussedabove,programadministratorsmayinsteaddesign andconductaprogramthatachievesatotal20percentenergyefficiencysavingsoverthegroupof EPBIparticipantsintheirSB1participationportfolio.Thisalternativeenablesprogram administratorstopursuedifferentlevelsofenergyefficiencywithdifferentprogramparticipants overtime.ProgramadministratorsshallprovidetheEnergyCommissionwithathreeyearplan thatdescribestheinitiativesthattheywilltaketoachievethislevelofenergyefficiencysavings. ProgramadministratorsshallreportannuallytotheEnergyCommissionontheirprogressin achievingatotal20percentenergyefficiencysavingsoverthegroupofEPBIparticipantsintheir SB1portfolio.PlansshallbereviewedbyEnergyCommissionstafftodeterminethattheywill successfullyachievethe20percentsavings. TheEnergyCommissionmayreturntheplantotheprogramadministratorforfurther developmentifitdeemsnecessary.Plansshallbeconsideredforpossibleapprovalataregularly scheduledEnergyCommissionbusinessmeeting,andonceapprovedandimplementedshallbe usedasanalternativetothespecificenergyefficiencyrequirementsotherwiserequiredinthese Guidelines.AlternativePortfolioEnergySavingPlansshallbeapprovedbytheEnergy CommissionatitsdiscretionandmayberejectediftheEnergyCommissiondeterminestheplan willnotresultintherequisite20percentenergyefficiencysavings.Ifaplanisapproved,the programadministratorsshallberequiredtoreportannuallyontheirprogressofachievingthe20 percentsavings.TheEnergyCommissionmaydiscontinueitsapprovalofaplanordirectan expansionormodificationoftheplaniftheEnergyCommissiondeterminesthatprogressunderthe plantoachievethe20percentenergysavingsisnotbeingachieved.

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Programadministratorsmayconformtotherequirementsintheprevioussectionsofthischapter foranyparticularEPBIparticipatingbuildingsintheirSB1portfolioandestablishanalternative portfolioenergysavingsplancoveringjusttheremainingEPBIparticipatingbuildings.For example,aprogramadministratormayconformtotherequirementsintheprevioussectionsfor newlyconstructedbuildings,bothresidentialandcommercial,andestablishanalternativeportfolio energysavingsplanjustforexistingEPBIparticipatingbuildings,bothresidentialandcommercial.

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CHAPTER 6: Reporting Requirements

UnderSB1,localpubliclyownedelectricutilitiesarerequiredtomakeavailablekeysolarprogram information.Thisinformationshallbemadeavailable,beginningJune1,2008,toitsutility customers,theCaliforniaStateLegislature,andtheEnergyCommission. 64 Thisinformationshallbe madeavailablenolaterthanJune1ofeachsubsequentyearforthedurationofthe10year program. Thesereportingrequirementswillprovidestateofficialstheinformationneededtomonitorhow theseprogramsareprogressing,ensureconsistentprogramdesignandimplementation,and determinewhatchangesmaybeneededtoeffectivelymeetgoalsandtargetsestablishedunder SB1.

Reporting Requirements Beginning in 2009

Foryears2009andlater,thereportingperiodshallbefromJanuary1toDecember31oftheprioryear. EachPOUshallreportthefollowinginformation. 1. Solarprogramoverviewandcontributiontowardgoals,including: a. Outreachandmarketing,overviewofprogramadministrationandactivityduring reportingperiod b. Problemsidentifiedandresolutionsorrecommendedmitigation c. Opportunitiesfortheyearahead 2. Numberofsubmittedapplications,including: a. Numberofapplicationsreceived b. NumberofEPBIandPBIapplicationsapprovedandrejected/cancelled c. Primaryreasonsforapplicationrejections/cancellations 3. Totalincentivesawarded,including: a. Totalsolarfundscollectedforthelifeoftheprogram b. Totalsolarincentiveexpenditures,bycategory(reserved/awarded,paid,administration, marketing) 4. Thetotalnumberofsystemsinstalled,including: a. Breakdownforinstallationsservingnewlyconstructedbuildings(TierIvs.II,if available)andexistingbuildings b. Breakdownbycategorytype,including: 1. Residential
64PublicUtilitiesCode,Section387.5(e).

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a) Marketratehousing b) Affordablehousing/lowincome 2. Commercial 3. Nonprofit 4. Government 5. Industrial 6. Agricultural 7. Mixeduse 5. Amountofaddedsolarcapacityinstalledandexpectedgeneration: a. ForPVsystems,thesolarelectriccapacityaddedinkilowatts(kWAC)andtheestimated annualelectricalgenerationinkilowatthours(kWh) b. Forothersolarelectricgeneratingsystems,thesolarelectriccapacityaddedinkilowatts (kWAC),theestimatedannualelectricalgenerationinkilowatthours(kWh),anda descriptionofthespecifictechnologydeployed 6. Programsupportactivitiesandgoals,including: a. Anytrainingorbuilder/installerassistance,ifavailable b. Auditingofinstalledsystems,ifavailable c. Goalsinkilowatts(kWAC)forprogramduration,ifavailable. EachlocalpubliclyownedelectricutilityshallsubmitanelectronicversiontotheEnergy CommissionnotlaterthanJune1ofeachprogramyear.Electroniccopiescanbesentto renewable@energy.state.ca.us.

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APPENDIX 1: Criteria for Testing, Certification, and Listing of Eligible Components

Thisappendixsummarizesthecriteriausedfordeterminingthecomponentsthatcanbeusedto createaphotovoltaic(PV)systemthatiseligibleforanincentive.Certifiedequipment(solar modules,inverters,andperformancemeters)isperiodicallyaddedtoandremovedfromthe listsofeligibleequipment. Theequipmentshallbecertifiedtomeetnationallyorinternationallyrecognizedstandards, informationsubmittalrequirements,andothercriteriaspecifiedbytheEnergyCommissionto belisted.

Photovoltaic Modules
AllflatplatePVmodulesshallbecertifiedbyaNationallyRecognizedTestingLaboratory 65 as meetingtherequirementsofandbeinglistedtobeinconformancetotheUnderwriters Laboratory(UL)Standard1703.Forpurposesofincentiveeligibility,auniquemodelnumber shallberequiredforeachPVmodulethathasadifferentpowerrating.Manufacturersmay distinguishmultiplePVmodulesatagivenpowerratingbyusingadditionaluniquemodel numbers.Forpurposesofincentiveeligibility,eachuniquemodelnumbershallbeexplicitly identifiedontheUL1703certificationdocument. AllflatplatePVmodulesshallalsobetestedbyalaboratoryaccreditedbytheInternational LaboratoryAccreditationCooperation(ILAC)accordingtothefollowingsectionsofeitherthe InternationalElectrotechnicalCommission(IEC)Standard61215,CrystallineSiliconTerrestrial Photovoltaic(PV)ModulesDesignQualificationandTypeApproval,Edition2.0,200504,orthe(IEC) Standard61646,ThinfilmTerrestrialPhotovoltaic(PV)ModulesDesignQualificationandType Approval,Edition2.0,200805,exceptasspecifiedinNote3ofTable1below. IECStandard61215Sections 10.2 MaximumPowerDetermination 10.4 MeasurementofTemperatureCoefficients 10.5 MeasurementofNominalOperatingCellTemperature(NOCT) 10.6 PerformanceatStandardTestConditions(STC)andNOCT 10.7 PerformanceatLowIrradiance IECStandard61646Sections

65NationallyRecognizedTestingLaboratoriesmustbeapprovedtoconducttestUL1703underthe scopeoftheirOSHArecognition.Pleasenote,notalloftheNationallyRecognizedTestingLaboratories identifiedonOSHAslistareapprovedtoconducttestUL1703.

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10.2 MaximumPowerDetermination 10.4 MeasurementofTemperatureCoefficients 10.5 MeasurementofNOCT 10.6 PerformanceatSTCandNOCT 10.7 PerformanceatLowIrradiance 10.19 LightSoaking Thefactorymeasuredmaximumpowerofeachproductionmodule,asspecifiedinUL 1703,Section44.1,andthelowerboundofthemanufacturersstatedtolerancerange, underUL1703,Section48.2,shallbenolessthan95percentoftheMaximumPowerreportedto theEnergyCommission. TheperformancedataandinformationinTable1shallbecertifiedandprovidedtotheEnergy Commission.Thisdatamaybemadeavailabletothepublic.Formultiplemodelnumbers,data maybegroupedtogetherasdescribedbelow.

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Table 1. Module Performance Parameter Testing

Parameter Maximum Power Voltage at maximum power Current at maximum power Open Circuit Voltage Short Circuit Current Nominal Operating Cell Temperature Temperature Coefficients

Symbol Pmax Vpmax Ipmax Voc Isc NOCT Voc (at Voc) Vpmax (at Vpmax) Isc (at Isc) Ipmax (at Ipmax)

Units Watts Volts Amps Volts Amps C %/C

Notes 1, 5 1, 5 1, 5 1, 5 1, 5 3 2

Pmax (at Pmax)

Voltage at maximum power and low irradiance Current at maximum power and low irradiance Open Circuit Voltage at low irradiance Short Circuit Current at low irradiance Voltage at maximum power and NOCT Current at maximum power and NOCT Open Circuit Voltage at NOCT Short Circuit Current at NOCT Notes:
1) Values shall be measured at Standard Test Conditions after Preconditioning according to IEC Standard 61215, Section 5, or after Light-soaking according to IEC Standard 61646, Section 10.19. Modules may be light-soaked by the manufacturer prior to submitting the modules to a testing laboratory. The testing laboratory shall verify the module stabilization in accordance with IEC Standard 61646, Section 10.19. 2) Values shall be measured and calculated according to IEC Standards 61215 and 61646, Section 10.4. 3) Values shall be measured in accordance with IEC Standards 61215 and 61646, Section 10.5. For BIPV modules the measurements shall be made using the mounting specified below. 4) Values shall be measured at low irradiance according to IEC Standards 61215 and 61646, Section 10.7. 5) Values shall be measured at STC and NOCT according to IEC Standards 61215 and 61646, Section 10.6. 6) The submission of this data is optional.
Source: Energy Commission

Vpmax,low Ipmax,low Voc,low Isc,low Vpmax,NOCT Ipmax,NOCT Voc,NOCT Isc,NOCT

Volts Amps Volts Amps Volts Amps Volts Amps

4 4 4, 6 4, 6 5 5 5, 6 5, 6

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Mounting Specifications for NOCT Testing for Building Integrated Photovoltaic (BIPV) Modules Intended for Roof-Integrated Installations:
Tiltangle:Thetestmodulesshallbepositionedsothattheyaretiltedat23o5o(5:12roofpitch) tothehorizontal. Configuration:Thetestmodulesshallbelocatedinthemiddleofanarraythatisatleastfourfeet highandfourfeetwide.Thearrayshallbesurroundedonallsideswithaminimumofthree feetofthebuildingsystemforwhichtheBIPVsystemisdesignedtobecompatible,andthe entireassemblyshallbeinstalledandsealedasspecifiedbythemanufacturerforanormal installation. SubstrateandUnderlayment:Thetestmodulesshallbeinstalledonasubstrateoforientedstrand boardwithaminimumthicknessof15/32inchthatiscoveredby#30roofingfeltwitha minimumR10continuousinsulationunderandincontactwiththeorientedstrandboardand includeanyothermanufacturerrecommendedunderlayments.

Grouping of Modules for Testing Purposes

FortestingandreportingofperformancevaluesbyanILACaccreditedlaboratory,familiesof similarmodulesmaybegroupedtogethertoreducetherequirednumberoftests. Multiplemodelnumbersmaybeincludedinagroup,providedthatthemodelsareidentical exceptfortheSTCpowerrating.Identicalappliestoallofthefollowing,butisnotlimitedto: allmaterials,processes(includingcellprocess),celltechnology,cellsize,encapsulationsystem, superstrate,backsheet/substrate,cellinterconnectionmaterialsandtechniques,andinternal electriccircuitry. Foreachgroup,thefollowingtestsshallbeperformedonamodelnumberthathasaSTC powerratingthatiswithin95percent(roundedtothenearestWatt)ofthehighestSTCpower ratinginthegroup: 1. NominalOperatingCellTemperature(NOCT)determination 2. Temperaturecoefficientofshortcircuitcurrent 3. Temperaturecoefficientofopencircuitvoltage 4. Temperaturecoefficientofmaximumpowercurrent 5. Temperaturecoefficientofmaximumpowervoltage 6. Temperaturecoefficientofmaximumpower Eachgroupcanbefurthercategorizedintosubgroupswhereonemodelnumberwillhave furthertestingperformed.Allmodelnumbersincludedinthesubgroupshallhavethesame numberofcells.ThesubgroupmaycontainmodelnumberssuchthatthehighestSTCpower ratinginthesubgroupis105percent(roundedtothenearestwatt)ofthesubgroupstested modelnumbersSTCratingandthelowestSTCpowerratinginthesubgroupis95percent

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(roundedtothenearestwatt)ofthesubgroupstestedmodelnumbersSTCrating.Thetested modelnumberineachsubgroupshallbetestedfor: PerformanceatSTC: 1. Shortcircuitcurrent 2. Opencircuitvoltage 3. Currentatmaximumpower 4. Voltageatmaximumpower 5. Maximumpower PerformanceatNOCT: 1. Shortcircuitcurrent(optional) 2. Opencircuitvoltage(optional) 3. Currentatmaximumpower 4. Voltageatmaximumpower Performanceatlowirradiance: 1. Shortcircuitcurrent(optional) 2. Opencircuitvoltage(optional) 3. Currentatmaximumpower 4. Voltageatmaximumpower Example:IfamanufacturerhasafamilyofidenticalmoduleswithSTCpowerratingsof 160W,165W,170W,175W,180W,185W,190W,195W,and200W,thefollowing testingisrequired.Forthe190Wmodule,NOCTdeterminationandtemperature coefficienttestingshallbeperformed.Theresultsfromthesetestsareapplicabletothe entiregroupofmodules.Subgroupscanthenbecreatedasfollows: 185W,190W,195W,and200W 170W,175W,and180W 160Wand165W Forthe190W,175W,and160Wmodules,thespecifiedperformancetestingatthe followingconditionsshallbeperformed:STC,NOCT,andlowirradiance.Theresults fromthesetestsareapplicabletothemodulesintherespectivesubgroup.

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Inverters
AllinvertersshallmeettherequirementsofUL1741.CertificationtoUL1741isrequiredunless otherwisenotedinChapter3.EachmodelofinvertershallbetestedbyaqualifiedNationally RecognizedTestLaboratory 66 tobeeligibleforthisprogram.Performanceratingsforeach modelwillbedeterminedaccordingtosectionsofthetestprotocoltitledPerformanceTest ProtocolforEvaluatingInvertersUsedinGridConnectedPhotovoltaicSystems,preparedbySandia NationalLaboratories,EndeconEngineering,BEWEngineering,andInstituteforSustainable Technology,October14,2004,version 67 andtheGuidelinesfortheUseofthePerformanceTest ProtocolforEvaluatingInvertersUsedinGridConnectedPhotovoltaicSystems.Thisversionofthe testprotocolandGuidelinesareavailableontheEnergyCommissionwebsiteat http://www.gosolarcalifornia.org/equipment/documents/20041122_TEST_PROTOCOL.PDF. Thetestsshallbeperformedinaccordancewithsections3,4,5.1,and5.2ofthetestprotocol,as furtherclarifiedintheguidelines.Thefollowingtestsarerequired: MaximumContinuousOutputPower.Section5.4shallbeperformedinitsentiretyfor testconditionAofTable52withthefollowingexceptions:1)thetestshallbeperformed atanambienttemperatureof40C,ratherthan45C,and2)thedcVnommaybeselected bythemanufactureratanypointbetweenVmin+0.25*(VmaxVmin)andVmin+0.75*(Vmax Vmin).ItisnotnecessarytoperformSection5.4fortestconditionsBthroughEofTable5 2. ConversionEfficiency.Section5.5shallbeperformedfortestconditionsA,BandCof Table5.3,subjecttothefollowing:1)thetestsshallbeperformedwithdcVnomequaling thesamevoltageasselectedabovefortheMaximumContinuousPowerOutputtest,2) steps1through8ofthetestprocedure(Section5.5.1)shallbeperformedat25C,andnot at45C,and3)toreducetimeforeachtestcondition,beginatthehighestpowerlevel andgotothelowerpowerlevels.Ifdoneinthisorder,itwillonlybenecessarytowait fortemperaturestabilizationatthe100percentpowerlevel.Inaddition,theunitonly needstobeoperatedatfulloutputpowerforonehour,ratherthan2.5hours,andno preheatingisnecessaryiftheConversionEfficiencytestisperformedwithin1hourof fulloperationundertest5.4providedtheunithasnotbeenexposedtoambient temperatureoflessthan22C. TareLosses.Section5.7.1shallbeperformedinitsentirety.Itisnotnecessaryto performthetestsunderSection5.7.2orSection5.7.3.
66NationallyRecognizedTestingLaboratoriesmustbeapprovedtoconducttestUL1741underthe scopeoftheirOSHArecognition.Pleasenote,notalloftheNationallyRecognizedTestingLaboratories identifiedonOSHAslistareapprovedtoconducttestUL1741. 67ThisversionofthetestprotocolisidentifiedbythefilenameInvertrTestProto_041014.docasshown inthelefthandsideofthefooteroneachpageoftheprotocol.

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 Alloftheabovedatawillbeusedasinputsforthecalculationofexpectedperformanceofthe system. ThetestsforPowerFoldback(Section5.8)andInverterPerformanceFactor/InverterYield (Section5.9)areNOTrequired. ThedataandreportsresultingfromthetestsforMaximumContinuousOutputPower(Section 5.4),ConversionEfficiency(Section5.5)andTareLosses(Section5.7.1)shallbeprovidedtothe EnergyCommissionandwillbemadepublic.Theinvertertestedshallutilizethesame hardwareandsoftwareconfigurationevaluatedduringtheUL1741certificationtest.

Meters
Alleligiblemetersshallcomplywiththerequirementsstatedbelow,tobelistedaseligible equipmentwiththeEnergyCommission. MeterMeasurement:Metersshallmeasurenetgeneratedenergyoutputaswellas instantaneouspower. MeterTestingStandards:2percentmetersshallbetestedbyaNRTL,accordingtoall applicableANSIC12testingprotocols.BeginningJuly1,2011,allinverterintegrated metersshallbetestedto5percentaccuracybyaNRTL,inaccordancewithInverter Integral5%MeterPerformanceSpecificationandTestRequirementsadoptedbythe CaliforniaPublicUtilitiesCommission. 68 MeterCertification:MeteraccuracyratingsshallbecertifiedbyaNRTL.Alltestresults orNRTLdocumentationsupportingthecertificationshallbemaintainedonfilefor inspectionbytheEnergyCommission. MeterDataAccess:AllmetersshallprovidethePMRSproviderwiththeabilitytoaccess andretrievetheminimumrequiredSolarPerformance/OutputDatafromthemeter usingtheMeterCommunication/DataTransferProtocols.Intheeventthatthesystemis notrequiredtohaveaPMRSprovider,theSystemOwnershallhaveameanstoretrieve theminimumrequiredSolarPerformance/OutputDatafromthemeter. MeterDisplay:Allmetersshallprovideadisplayshowingmeasurednetgenerated energyoutputandmeasuredinstantaneouspower.Thisdisplayshallbeeasytoview

68ThetestrequirementscanbefoundintheCaliforniaSolarInitiativeProgramHandbookat http://www.gosolarcalifornia.org/documents/csi.php.

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andunderstand.Thisdisplayshallbephysicallylocatedeitheronthemeter,inverter,or onaremotedevice. MeterMemoryandStorage:Allmetersshallhavetheabilitytoretaincollecteddatain theeventofapoweroutage.Metersthatarereportingdataremotelyshallhave sufficientmemorytoretain60daysofdataiftheirstandardreportingscheduleis monthlyand7daysofdataiftheirstandardreportingscheduleisdaily.Metersthatdo notremotelyreporttheirdatashallretain60daysofdata.Inallcasesmetersshallbe abletoretainlifetimeproduction.

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APPENDIX 2: Field Verification and Diagnostic Testing of Photovoltaic Systems

Background
Thisappendixcoverstheminimumrequirementsofthefieldverificationprotocoltobe followedforapplicantsystemsusingtheEPBIapproach.Atthistime,itaddressessystemsthat usefixedflatplatecollectortechnology. 69 Thirdpartyfieldverificationshallbeconductedona minimumsampleofoneinsevensystemstoensurethatthecomponentsofthesolarsystem,its installation,performance,andshadingestimationareconsistentwiththecharacteristicsusedto determinetheestimatedperformance.TheEPBIincentiveamountisbasedontheexpected performanceofthesolarsystem,whichaccountsforthetestedandcertifiedperformanceofthe specificmodulesandinverter,themountingtype,celltemperature,theorientationandtiltof themodules,andtheextenttowhichthesystemisshaded.Acalculatortoolwillaccountfor theseparametersthatareunderthecontroloftheownerandinstaller,aswellasthesolarand climaticconditionsforthelocaleofthebuilding,todeterminehourlyestimatedproduction, whichisweightedtoaccountforthetimedependentvaluationoftheelectricitythatis produced.Thirdpartyfieldverificationshallbeconductedtoensurethatthecomponentsofthe solarsystemanditsinstallationareconsistentwiththecharacteristicsusedtodeterminethe estimatedperformance.FieldverificationcanbecarriedoutbyaHERSraterortheprogram administrator(ortheirdesignatedqualifiedcontractor). Thefieldverificationanddiagnostictestingproceduresdescribedinthisappendixareintended toensurethatthe: PVarrayandinvertersusedintheexpectedperformancecalculationsareactually installedattheapplicablesite. PVarrayisminimallyshaded,orifshaded,thattheactualshadingdoesnotexceedthe shadingcharacteristicsthatwereincludedintheexpectedperformancecalculations. MeasuredACpoweroutputfromthesystemmatchestheexpectedACpoweroutput tableattheprevailingconditionsatthetimeoffieldverificationanddiagnostictesting.

69Trackingandconcentratingsolartechnologiesmaybeaddressedinafutureupdateofthese guidelines.Programadministratorsmayspecifyafieldverificationprotocolforsuchtechnologies.

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Responsibilities
FieldverificationanddiagnostictestingistheresponsibilityofboththePVsysteminstallerand theverifierwhocompletesthethirdpartyfieldverification.ThePVinstallershallperformthe fieldverificationanddiagnostictestingproceduresinthisdocumentforeverysystemthatis installed.Theverifierthenperformsindependentthirdpartyfieldverificationanddiagnostic testingofthesystems.Thethirdpartyfieldverificationshallbeconductedonaminimum sampleofoneinsevensystems. ThefieldverificationanddiagnostictestingprotocolisthesameforboththePVinstallerand theverifier.TheprotocolanticipatesthatthePVinstallerwillhavecompleteaccesstothe systemwhichtheverifiermaynothave.Forrooftopsystems,themeasurementsrequiredby thisprotocolarenotrequiredtobecompletedontheroof,butmoreaccuratemeasurementsare possiblewithroofaccess.Themeasurementsrequiredbytheprotocolmaybeperformedin multiplewaysasdescribedinthesubsectionsbelow. EXCEPTIONS:Theprogramadministratormaywaivetheinstallerrequirementtofollowthe fieldverificationprotocolunderanyoneofthefollowingconditions: 1. Theprogramrequiresfieldverificationon100percentofthesystems(withoutusing samplingapproach). 2. TheinstallerfollowsthealternateprotocoldescribedintheInstallerSystemInspection sectionlaterinthisappendix,andsignsacertificateofhavingcompletedthesame.

Field Verification and Diagnostic Testing Process

Thefieldverificationanddiagnostictestingofsolarsystemsfollowstheprocessdescribed below.NoteasolarsystemisoneormorestringsofPVmodulesconnectedtooneinverter 70 . Documentationoftheprocessusesthreeformsthatarecounterpartstothecomplianceforms usedfortheBuildingEnergyEfficiencyStandards. 1. Theapplicantentersthenecessaryinputdataintoacalculator,whichproducesan outputreportCertificateofComplianceFormthatdocumentsthespecificmodules, invertersandmetersthatareusedineachsolarsystemthatisinstalledonthebuilding, theanticipatedshadingofeachsystem(eithertheintentforthesystemtomeetthe minimalshadingrequirementsortheactualshadingthatisanticipated),andatableof predictedACpoweroutputforeachsystemoverarangeofsolarirradianceand
70Thisdefinitionofasolarsystemisapplicableforfieldverificationpurposesasoutlinedinthis appendixonlyandnotforprogramadministrationpurposesrelatedtosystemsizeorprogram participationcriteria.Multiplesystems,suchasmicroinverterbasedsystems,maybegroupedforfield verificationusingthesamplingapproach.

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ambientairtemperature.TheCertificateofComplianceFormshallbeprovidedtothe programadministratorsatapplicationtime. 2. Onceeachsolarsystemisinstalled,thePVinstallercompleteseitherthefield verificationanddiagnostictestingprotocolorthealternateprotocolforeachsolar systemonthebuildinganddocumentstheresultsontheInstallationCertificate, verifyingthattheinstallationisconsistentwiththeCertificateofCompliance.ThePV installerdocumentsandcertifiesthatthePVsystemmeetstherequirementofthis appendixandprovidesacopyoftheInstallationCertificatetotheowner/builderandto theverifier 71 . 3. Theverifiercompletesindependentthirdpartyfieldverificationanddiagnostictesting ofeachsolarsystemanddocumentstheresultsontheCertificateofFieldVerification andDiagnosticTesting,independentlyverifyingthattheinstallationisconsistentwith theCertificateofCompliance.TheverifierprovidesacopyoftheCertificateofField VerificationandDiagnosticTestingtotheowner/builder(andtheHERSproviderinthe casewhereHERSratersareusedforfieldverification). 4. Thepaymentclaimshallbebasedonsystemcharacteristicsthatproduceexpected performancecalculationsthatarenobetterthancalculationsbasedonthecharacteristics reportedintheCertificateofFieldVerificationandDiagnosticTesting. InconjunctionwiththeInstallationCertificate,theapplicantshallprovidetothe installerandverifierasiteplanthatforeachlot: a) Identifiestheheightcategory(small,medium,orlarge)ofallpreexisting,planted andplannedtreesandthelocationandheightofanystructureswhichwillbebuilt onthelotandneighboringlotsofthebuildingwiththesolarsystem. b) Showsthebearingofthepropertylinesandtheazimuthandtiltorroofpitchofeach PVarray. EXCEPTIONS:Aprogramadministratormayexemptthefollowingrequirementsforall retrofitprojects(residentialandnonresidential): 1. Siteplanshowingpropertylines. 2. Identificationofunknownfuturetrees. 3. Identificationofneighboringstructuresthatarenotalreadyconstructedorthat areunknowntobeplannedforconstructioninthefuture.

71Theinstallercertificateshallbesubmittedtotheprogramadministratorifthefieldverificationisthe responsibilityoftheprogramadministratorandassignedtoafieldverifierthereafter.

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5.Theapplicantshallalsoprovidetheverifieraproductspecification(cutsheet)forthe modules,inverterandmeterforthespecificsystem,alongwithaninvoiceorpurchase documentthatliststhemakeandmodelofPVmodulesinstalledintheproject.

Relationship to Other Codes, Standards, and Verification

ThelocaljurisdictionmustissueabuildingpermitforthequalifyingPVsystem,eitherasa separatepermitoraspartofthenewconstructionbuildingpermitorretrofitapplication,and thePVsystemmustmeetallapplicableelectricalcode,structuralcode,andbuildingcode requirements.Inaddition,thelocalelectricutilitywillhavestandardsregarding interconnectiontotheelectricgridandothermattersthatshallbecompliedwith. Thefieldverificationanddiagnostictestingproceduresdescribedinthisdocumentdonot substitutefornormalelectrical,structural,orbuildingplancheckorfieldinspection.Nordo theysubstituteforfieldverificationbythelocalutilityregardinginterconnectiontotheelectric grid.

Field Verification Visual Inspection

Thepurposeofthevisualinspectiondescribedinthisprotocolistoverifythatthemodules, inverter,andmeterspecifiedintheCertificateofComplianceareproperlyinstalledinthefield. Theverifiershallusebinocularsoranothermeanstoviewtheinstallationifaccesstothesystem isrestrictedduetoinsuranceandliabilityreasons(slopingorunprotectedrooftopaccessfor example)andshallverifythemodelsandnumbersofmodulesagainstthecutsheet/invoices. Theverifiermayrelyonphotographicevidenceprovidedbytheinstalleronthemodelsand numbersofmodules,standoffdistance,andshading,butintheabsenceofsuchevidence,shall relyonaconservativedeterminationbasedsolelyononesownobservation.

Photovoltaic Modules
ThePVinstallerandtheverifiershallconfirmthatthesamenumberofeachmakeandmodel numberofPVmodulesusedintheexpectedperformancecalculationsareinstalledinthefield. ThePVinstallerandverifiershallalsoconfirmthemodulemountingtype(flushmountedBIPV orrackmounted)andinthecaseofrackmountedmodules,thestandoffdistanceofthe modulesabovethemountingsurface.ThePVinstallerandtheverifiershallalsoobserveand confirmthemountingheightofthemodules(onestory,twostories,ormeasuredminimum distanceabovetheground).

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Inverters
ThePVinstallerandtheverifiershallconfirmthatthemakeandmodelofinvertersusedinthe expectedperformancecalculationsareinstalledinthefield.

System Performance Meters

ThePVinstallerandtheverifiershallverifythateitheraseparatesystemperformancemeteror aninverterwithanintegralsystemperformancemeterisinstalledthatisthesamemakeand modelspecifiedontheReservationApplicationFormandmeetsalleligibilityrequirementsfor systemperformancemeters.

Tilt and Azimuth

ThePVinstallerandtheverifiershallconfirmthatthetiltandazimuth(orientation)ofthePV modulesinstalledinthefieldmatchthevaluesthatwereusedtodeterminetheexpected performanceofeachsolarsystem,within5degrees 72 .Insomesystems,PVmodulesmaybe installedinmultiplearrayswithdifferenttiltsandazimuths;inthesecasesthetiltandazimuth ofeacharrayshallbeconfirmed. Determining Tilt ThetiltangleofthePVmodulesismeasuredindegreesfromthehorizontal(horizontalPV moduleswillhaveatiltofzeroandverticallymountedPVmoduleswillhaveatiltof90 degrees).ThetiltofthePVmodulesmaybedeterminedinthefollowingways: i. Usingthebuildingplans Theasbuiltorconstructiondrawingsforthebuildingwillstatetheslopeoftheroof,usuallyas theratioofrisetorun.IfthePVmodulesaremountedintheplaneoftheroofthentheslopeof thePVmodulesisthesameastheslopeoftheroof.Table1maybeusedtoconvertrisetorun ratiostodegreesoftilt.

72Programadministratorsmaychooseatightertolerancefortheirprogram.

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Table 1: Conversion of Roof Pitch to Tilt

Roof Pitch (Rise:Run) 2:12 3:12 4:12 5:12 6:12 7:12 8:12 9:12 10:12 11:12 12:12 Source: Energy Commission Tilt (degrees) 9.5 14.0 18.4 22.6 26.6 30.3 33.7 36.9 39.8 42.5 45.0

ii. Usingadigitalprotractor Adigitalprotractormaybeusedtomeasureeitherhorizontalorverticalangles(seeFigure1). Thesedevices,whensighteduptheslopeofthePVmodulesfromtheground,willdisplaythe sloperelativetothehorizontal.

Figure 1: Digital Protractor

Source: Energy Commission

Determining Orientation (Azimuth) ThePVinstallerandtheverifiershalldeterminetheorientationbymeasuringtheazimuthof thePVmodulesandconfirmthattheazimuthisthesameasthatusedtodeterminethe expectedperformanceofeachsolarsystem.Theconventionthatisusedformeasuringazimuth istodeterminethedegreesofangleclockwisefromnorth;northazimuthiszerodegrees,eastis 90degrees,southis180degrees,andwestis270degrees.(SeeFigure2.)

45


Figure 2: Azimuth of the PV Array

Source: Energy Commission

Thefollowingmethodsmaybeusedtodeterminetheazimuth. i. UsingthePlotPlans Innewsubdivisions,thehouseplanswilloftennotshowthepropertylinessincetheplansare usedonmultiplelots.However,thesubdivisionplotplanwillshowthepropertylinesofthe lots.Theplotplanwillshowthebearingofthepropertylines,andfromthisinformationthe azimuthoftheroofsurfaceswherethePVmodulesaremountedmaybedeterminedfromthe positionofthehouseonthelotrelativetothebearingsofthepropertylines. Figure3showsanexampleplotplanwithahouselocatedonit.Inthiscase,thehousedoesnot alignwithanyofthepropertylines,butisrotated15degreesfromthewesterlypropertylineas shown.Propertylinesonplotplansaretypicallylabeledintermsoftheirbearing,whichisthe directionoftheline.ThewesterlypropertylineislabeledNorth12East.Ifthehousewas alignedwiththispropertyline,thesoutherlyexposureofthehousewouldhaveanazimuthof 192(180plusthe12bearingofthepropertyline).Sincethehouseisrotatedanadditional15, theazimuthofthesoutherlyfaceofthehouseandtheazimuthofthePVarrayis207(192plus 15).Usually,thehousewillbealignedwithoneofthepropertylinesandthecalculation describedabovewillbesimplified.

46

Figure 3: Example Plot Plan

East 12 South

North 12 East

PV array 15 degrees

West 12 North

Source: Energy Commission

ii. UsingaCompasswithaSightingFeatureandanAdjustmentforMagneticDeclination. Theinstallerandverifiershallensurethatthecompasshasasightingfeature.Thecompassmay haveanadjustmentbuiltinformagneticdeclinationsothatthereadingonthecompassistrue northortheinstallerandtheverifiershalldeterminethemagneticdeclinationusingthetool availableathttp://www.ngdc.noaa.gov/geomagmodels/Declination.jspandadjustthecompass readingtoaccountforthemagneticdeclination.Positionthecompassanddeterminethearray azimuthanglebetweencompassnorthandthedirectionthatthePVmodulesface.Itsusually convenientandmostaccuratetoalignthecompassalongtheedgeofthearrayusingthe sightingfeature.(SeeFigure4.)

47

Sou th 3 2 W est

North


Figure 4: Compass With a Sighting Feature

Source: Energy Commission

Shading Verification
Shadingofphotovoltaicsystems,evenpartialshadingofarrays,canbethemostimportant causeoffailuretoachievehighsystemperformance.Significantshadingshouldbeavoided wheneverpossible.Shadingcanbeavoidedbycarefullocationofthearrayatthepointof installationorinsomecases,particularlyduringtheprocessofconstructingbuildings,by movingobstructionstolocationswheretheydonotcastshadingonthearray.Partialshading fromobstructionsthatarerelativelyclosetothearray,particularlyobstructionsthatareonthe roofeveniftheyarerelativelysmall,canbeparticularlyproblematicbecausetheycausepartial shadingofthearrayforlongertimeperiodsoftheyear.Shadingcausedinthefutureduetothe maturingoftreesthatareimmatureatthetimeofinstallationofthePVSystemcanalsobea majorcauseoffailuretoachievehighperformanceoverthelifeofthePVsystem. ThePVinstallerandtheverifiershallconfirmthattheshadingconditionsonthesysteminthe fieldareconsistentwiththoseusedintheexpectedperformancecalculations(Certificateof Compliance).Theestimatedperformancecalculationswillbedoneeitherassumingthatthe minimalshadingcriterionismetorbasedonthespecificshadingcharacteristicsofthe system.

Minimal Shading Criterion

Theminimalshadingcriterionisthatnoobstructioniscloserthanadistance(D)oftwice theheight(H)itextendsabovethePVarray(seeFigure5foranartisticdepictionofHand D).AsthefigureillustratesthedistanceDshallbeatleasttwotimesgreaterthanthe distanceH.AnyobstructionthatprojectsabovethepointonthePVarraythatisclosesttothe obstructionshallmeetthiscriterionforthePVarraytobeconsideredminimallyshaded. Obstructionsthataresubjecttothiscriterioninclude:

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i. Anyvent,chimney,architecturalfeature,mechanicalequipment,orotherobstruction thatisontherooforanyotherpartofthebuilding. ii. Anypartoftheneighboringterrain. iii. Anytreethatismatureatthetimeofinstallationofthesolarsystem. iv. Anytreethatisplantedonthebuildinglotorneighboringlotsorplannedtobe plantedaspartofthelandscapingforthebuilding.(Theexpectedshadingshallbe basedonthematureheightofthetree.) v. Anyexistingneighboringbuildingorstructure. vi. Anyplannedneighboringbuildingorstructurethatisknowntothebuilderor buildingowner. vii. Anytelephoneorotherutilitypolethatiscloserthan30feetfromthenearestpointof thearray.
Figure 5: The Minimal Shading Criterion - Artistic Depiction of H and D

H H D D

Source: Energy Commission

Todeterminewhetherornottheminimalshadingcriterionismet,thePVinstallerandthe verifiershalldetermineforeachshadingobstructionthesmallestratioofthehorizontaldistance fromtheobstructiontothearraydividedbytheverticalheightoftheobstructionabovethat pointonthearray.(Thisistheclosestpointonthearray.)Oftenthepointontheobstruction thatresultsinthesmallestratioisthetopmostpointoftheobstruction,butincaseswherethe shapeoftheobstructioniscomplex,pointsontheobstructionthatarenotthetopmostbutare closertothearraymayactuallyproducethelowestratio.Histheverticalheightofthe shadingobstructionpointabovethehorizontalprojectiontotheclosestpointonthearray.D isthehorizontaldistancefromtheclosestpointonthearraytotheverticalprojectionfromthe pointontheobstructionthatresultsinthelowestratioofDdividedbyH.Anyobstruction locatednorthofallpointsonthearrayneednotbeconsideredasshadingobstructions.Whenan obstructionisnorthofsomepartsofanarraybuteast,southorwestofotherpartsofthearray, theminimalshadingcriterionshallbedeterminedtotheclosestpointonthearraythatiswest, north,oreastoftheobstruction. ThePVinstallerandtheverifiermayconfirmthroughvisualinspectionthatallobstructionsmeet the2:1criterion.(Notethatanaltitudeangleof26.5degreesisequivalenttothe2:1criterion.)For

49

obstructionsthatvisualinspectionindicatespotentiallydonotmeetthecriterion,thePVinstaller andverifiershallmeasuretheheightanddistanceoftheobstruction(s)relativetothePVarrayas describedabovetoverifythatthe2:1shadingcriterion(oralowerthan26.5altitudeanglethrough thesamepointsontheobstructionandarray)ismet.Atoleranceof5percentwillbepermissible whendeterminingtheratio(orthealtitudeangle).

Accounting for Actual Shading

WhenaPVinstallationdoesnotmeettheminimalshadingcriterion,itcanstillqualifyforan incentiveandparticipateintheprogram,buttheshadingconditionsforeachPVsystematthe siteshallbeaccountedforintheexpectedperformancecalculationasdescribedinthissection. Thebasicmethodisusedwhentheshadingconditionismeasuredusingatapemeasureor usingadigitalprotractor.Adifferentmethodisusedwhenmeasurementsaremadewitha solarassessmenttool. Whenatapemeasureordigitalprotractorisusedtomeasureshadingobstructionsthatare accountedforintheexpectedperformancecalculation,thecalculatorwillproduceonthe CertificateofComplianceatablesimilartoTable2thatshowsthedistancetoheightratioand altitudeanglefortheclosestpointonthearrayforeachobstructionincludingmaturetreesthat shadethePVarray.Thistabledividesthecompassinto11(approximately22.5degree)sectors, progressingclockwisearoundthecompassfromnorth.Thetableprovidesthedistanceto heightratioandaltitudeangleforeachsectorofthecompass.Whenthereismorethanone obstructioninasector,theinformationisreportedfortheobstructionwiththelowestdistance toheightratio(highestaltitudeangle).Thedistancetoheightratiowillbeanumberlessthan orequaltotwo,becauseifitisgreaterthantwo,theminimalshadingcriterionissatisfiedin thatdirectionandshadingisnotconsideredintheexpectedperformancecalculationforthat sector.Thetablealsoshowstheminimumdistancetosmall,medium,andlargetreestomeet theminimalshadingcriterionfortreesthatarenotattheirmatureheights.ThedatainTable2 isspecifictoaparticularPVsysteminstallation.Inthisexampletheminimalshadingcondition isnotmetforfivesectorsofthecompass,ESE,SSE,S,SW,andWNW. ThePVinstallerandtheverifiershallconfirmthattheshadingconditionsthatexist(orare expectedtoexistinthecaseofthematureheightsoftreesthatareplantedonthebuildinglotor neighboringlotsorplannedtobeplantedaspartofthelandscapingforthebuildingorplanned buildingsorstructuresonthebuildinglotorneighboringlotsthatareknowntothebuilderor buildingowner)atthesitewillnotcausegreatershadingofthemodulesthantheshading characteristicsthatwereusedintheexpectedperformancecalculations. EXCEPTION:Programadministratorsmaywaivetherequirementtoaccountforfutureshade intheexpectedperformancecalculationsforallsolarprojectsonresidentialandnonresidential existingbuildingsontheconditionthatacopyofadisclosurestatementisprovidedtothe buildingownerandprogramadministratorthatidentifiesexistingtreesonthebuildingsiteand

50

adjoiningsitesthataresmallerthan50feet,whichmaycastpotentialfutureshadethatwould reducefuturesystemperformance.
Table 2: Example Certificate of Compliance Format for PV Shading
Orientation ENE (55 79) E (79 -101) ESE (101 124) SE (124 146) SSE (146 169) S (169 191) SSW (191 214) SW (214 236) WSW (236 259) W (259 281) WNW (281 305) Tree (planned) Source: Energy Commission Tree (existing-not mature) On roof obstruction Tree (existing-mature) Obstruction Type NA NA Neighboring structure Altitude Angle to Shading Obstruction Minimal Shading Minimal Shading 45 degrees Minimal Shading 50 degrees 70 degrees Minimal Shading 30 degrees Minimal Shading Minimal Shading 65 degrees Distance to Height Ratio 2.00 2.00 1.00 2.00 0.84 0.36 2.00 1.5 2.00 2.00 0.49 16 16 46 46 76 76 16 46 76 16 46 76 Minimum Distance to Small Tree 16 16 Minimum Distance to Medium Tree 46 46 Minimum Distance to Large Tree 76 76

Measuring Heights and Distances or Altitude Angles

Oneofthefollowingproceduresmaybeusedtomeasureheightsanddistancesoraltitude anglestoobstructions.Programadministratorsmaydeterminetheallowabletolerancerelated tofieldverificationofthesemeasurementsfortheirspecificprograms.Onereasonforthis toleranceistoaccountforthepotentialforusererrorwhenmeasurementtoolsareused. Using a Tape Measure Atapemeasureorothermeasuringdevicemaybeusedtomeasurethedistance(D)fromthe pointonthePVarraycorrespondingtothelowestratioofdistancetoheight(H)foreach shadingobstructionforeach22.5degreecompasssector.Thedistancetoatreethathasnot reacheditsmatureheightismeasuredtothenearestedgeofthetrunkofthetree.Oncethe heightdifference(H)anddistance(D)aredeterminedineachcompasssector,theratiois calculatedandshallbegreaterthanthevalueusedintheexpectedperformancecalculationas reportedontheCertificateofCompliance.(SeethefourthcolumninTable2labeledDistanceto HeightRatio.)Thismethodcanbeemployedfromthegroundwithoutaccesstotheroof,when factoringintherooftopdimensions. TheheightmeasurementfortreesthatareimmatureshallbebasedontheMatureTreeHeight discussedbelow.Determiningthedistancesandheightsofobstructionsforbuildingsand structuresthatareplannedbuthavenotyetbeenconstructedshallbebasedonplansforthose structures. Using a Digital Protractor Adigitalprotractor(SeeFigure1.)maybeusedtomeasurethehighestaltitudeanglefromthe obstructiontotheclosestpointonthearray(usingthesamepointsonthearrayandonthe obstructionthatproducethelowestratioofDtoHifthosedimensionsweremeasured

51

insteadofthealtitudeangle).Themeasuredaltitudeangleforeachobstructionineachcompass sectorshallbesmallerthanorequaltothatusedintheexpectedperformancecalculationas reportedontheCertificateofCompliance.(SeethethirdcolumninTable2.)Tousethedigital protractormeasurementdirectly,themeasurementshallbemadefromtheroof.Alternatively, thedigitalprotractormeasurementmaybemadefromthegroundandtrigonometric adjustmentswillberequiredtocorrectfortheheightdifferencebetweentheground,wherethe measurementsaremadeandthepointofmaximumshadingofthePVarrayinthatcompass sector. Thismethoddoesnotaddressexpectedshadingresultingfromthematureheightsofplanted immaturetreesorplannedtrees.Todeterminedistancesforplantedimmaturetrees,atape measureshouldbeused.Theheightmeasurementfortreesthatareimmatureshallbebasedon theMatureTreeHeightdiscussedbelow.Determiningthedistancesandheightsofobstructions forbuildingsandstructuresthatareplannedbuthavenotyetbeenconstructedshallbebased onplansforthosestructures. Using a Solar Assessment Tool Forshadingfromexistingobstructionsshadingconditionsmaybeverifiedusingasolar assessmenttool.ThisprocedurewilltypicallybeusedbythePVinstaller,buttheverifiermay nothavedirectaccesstothearrayand,ifnot,wouldrelyontheadequacyofdocumentationby theinstallertoconfirmtheshadingconditions. Ateachpointofmeasurement,thetoolisplacedonthePVarray,leveled,andoriented consistentwiththemanufacturersinstructions.Oncethetoolisproperlypositioned,itwill determinetheobstructionsthatcastshadeandthemonthandtimeofdaywhenshadingwill occur.Thetoolwillenablethesedeterminationseitherthroughtheuseofadigitalphotograph oramanualtracingonanangleestimatorgridoverlay.Theseresultsforasinglepointof referenceonthearrayareconvertedintoaformatthatcanbeusedbythecalculator,either throughsoftwareprovidedbythetoolmanufacturerormanually,asshowninFigure6(b),to determinethealtitudeangleofanobstructionineachcompasssector.

52

Figure 6: Conversion of Results From Solar Assessment Tool for a Single Point of Reference on the Array

(a) This diagram shows the 22.5 compass sectors used by the PV Calculator and the altitude angles determined by a Solar Assessment Tool for a single point of reference on the array. Source: Energy Commission

(b) Within each compass sector, the highest altitude angle is selected and used for that entire sector. This data is shown for a single point of reference on the array.

Measurementsshallbemadeatallthemajorcornersofthearraywithnoadjacentmeasurement beingmorethan40feetapart.(SeeexampleinFigure9.)Thepointsofmeasurementshallbe distributedevenlybetweentwomajorcornersiftheyaremorethan40feetapartsuchthatthe lineardistancebetweenanysequentialpointsisnomorethan40feet.However,ifanylinear edgeofthearrayhasnoobstructionsthatarecloserthantwotimestheheighttheyproject abovetheclosestpointonthearray,thentheintermediatemeasurementsalongthatedgedo notneedtobemade. 1. Thealtitudeanglesmeasuredateachmajorcornershallbeoverlappedontoasingle diagramorprocessedwiththetoolmanufacturerssoftware.Themaximumaltitude anglesmeasuredatanyofthemajorcornersofthearraywithinagivensectorshallbe appliedtotheentiresector.Thiscreatesasetof11valuesthatareusedinthePV calculation.(SeeFigure7.)

53

Figure7: Example of Combining the Maximum Altitude Angle in the 11 Compass Sectors for 4 Different Points on the Array. Azimuth Altitude
ENE (55 79) E (79 -101) ESE (101 124) SE (124 146) SSE (146 169) S (169 191) SSW (191 214) SW (214 236) WSW (236 259) W (259 281) WNW (281 305)

angle 64 58 40 27 28 34 32 30 17 15 50

Source: Energy Commission

2. Alternatively,themaximumaltitudeanglemeasuredateachofthemajorcornersofthe arraymaybereportedforeach1degreeincrementoftheazimuth.Thiswouldcreatea setof360values,oneforeachdegreeofthecompassorientation.Thesevaluesmaybe electronicallytransferredtothecalculatordependingontheimplementationbythe programadministrator.

54

Figure 8: Example of Combining the Altitude Angles Measured at 4 Different Points on the Array on a Per Degree Azimuth Increment

Source: Energy Commission

TheinstallershallattachthediagramshowninFigure8totheInstallationCertificateform, alongwithphotographicevidenceoftheshadingshownonthetool,thelocationofthetoolon thearray,andtheshadingobstructionsthatareindicatedonthetool,fortheverifiertoverify theresultsshownonthediagram. Thismethoddoesnotaddressexpectedshadingresultingfromthematureheightsofplanted immaturetreesorplannedtreesorexpectedconstructionofbuildingsorotherstructureson neighboringlots.Todeterminedistancesforplantedimmaturetrees,atapemeasureshouldbe used.TheheightmeasurementfortreesthatareimmatureshallbebasedontheMatureTree Heightdiscussedbelow.Determiningthedistancesandheightsofobstructionsforbuildings andstructuresthatareplannedbuthavenotyetbeenconstructedshallbebasedonplansfor thosestructures.Suchshadingshallbeaddressedseparately. Theresultsdeterminedbythetoolincombinationwiththeexpectedfutureshadingdescribed abovearecomparedtothedatathatwasusedintheexpectedperformancecalculationsto ensurethatthereisnotgreatershadingatthesitethanwasusedintheexpectedperformance calculations.

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Measuring Solar Availability

Asanalternativetomeasuringheightsanddistancesoraltitudeangles,programadministrators mayallowtheuseofsolaravailabilityasamethodtoestimatetheshadingimpactonhourly production.Thefollowingmethodologyshallbefollowedwhenthesolaravailabilityisusedin acalculator.Programadministratorsmaydeterminetheappropriatetolerancerelatedtothis methodologyforfieldverificationpurposes.Onereasonforthistoleranceistoaccountforthe potentialforusererrorwhenmeasurementtoolsareused. Using a Solar Assessment Tool Themeasurementsshallbemadeatallthemajorcornersofthearraywithnoadjacent measurementbeingmorethan40feetapart.(SeeexampleinFigure10.)Thepointsof measurementshallbedistributedevenlybetweentwomajorcornersiftheyaremorethan40 feetapartsuchthatthelineardistancebetweenanysequentialpointsisnomorethan40feet. However,ifanylinearedgeofthearrayhasnoobstructionsthatarecloserthantwotimesthe heighttheyprojectabovetheclosestpointonthearray,thentheintermediatemeasurements alongthatedgedonotneedtobemade.
Figure 9: Example of Points Where Measurement Shall Be Made Using a Solar Assessment Tool (overall array dimensions 76 feet by 50 feet)

Source: Energy Commission

6
5

Monthly Solar Availability Option TheMonthlySolarAvailabilityshallbereportedbythetoolasmonthlyvaluesaveragedover allthepointsofmeasurementandaveragedasmonthlysolaravailabilitynumbers(7amto7 pmlocalstandardtime)exceptforthemonthsofJunethroughSeptemberwherethreetime periodsineverydayofthemonthshallbereported.Programadministratorsmayweightthe

56

MonthlySolarAvailabilityduringpeakperiods(12noonto3pmand3pmto7pm)during summerusingTDVbasedweightingfactorsdeterminedbytheEnergyCommission.Each valueshallbereportedasapercentageoftheunshadedinsolationavailableonthearrayduring theperiodgivenitslocation,azimuth,andtilt.TheMonthlySolarAvailabilityshallbereported intheformatshowninTable3. WhenusingMonthlySolarAvailabilityvaluesinthePVproductioncalculationsforincentive, thevaluesshallbeappliedtotheestimateofunshadedproductionfortheapplicablemonth usingthefollowingequation.IfthekWhshadedvaluedeterminedusingthisequationisnegative, theproductionforthemonthissettozero. kWhshaded=kWhunshadedx(1(1Availability/100)xShadeImpactFactor) Where: =kWhproducedinthemonthincludingtheeffectofshading kWhshaded kWhunshaded =kWhproducedinthemonthifthearraywascompletelyunshaded Availability =Solaravailabilityforthemonth ShadeImpactFactor =Factorthataccountsforproductionlossduetoshading ThedefaultShadeImpactFactorshallbe2.0.Thedoublingofshadelossaccountsforthe disproportionateimpactonproductionduetopartialshadingonmodulesandstrings. Technologiesthatcandemonstrateeffectivetolerancetopartialshadinglossesinasystemshall beconsideredbytheEnergyCommissionforalowerShadeImpactFactor.
Table 3: Example of Monthly Solar Availability Table

Month 1 2 3 4 5 6 7 8 9 10 11 12 7 am to 7 pm 74% 83% 91% 94% 95% 7 am to 12 noon 89% 89% 88% 89% 7 am to 7 pm 88% 76% 67%

12 noon to 3 pm 3pm to 7 pm 100% 100% 100% 100% 100% 98% 100% 88%

Source: Energy Commission

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Hourly Solar Availability Option AsanalternativetotheMonthlySolarAvailability,theHourlySolarAvailabilityOptionmay beused.Thesolaravailabilityshallbereportedbythetoolashourlyvaluesaveragedoverall thepointsofmeasurement.Eachvalueshallbereportedasapercentageoftheunshaded insolationavailableonthearrayduringthehourgivenitslocation,azimuth,andtilt.The hourlysolaravailabilityvaluesshallbeprovidedbythesolarassessmenttoolsasanelectronic filewiththe8760valuesrepresentingeachhouroftheyear.Thefileformatandsecurityofdata transfershallbedeterminedbasedontheimplementationofthePVproductioncalculator. WhenusingHourlySolarAvailabilityvaluesinthePVproductioncalculationsforincentive, thevaluesshallbeappliedtotheestimateofunshadedhourlyproductionfortheapplicable hourusingthefollowingequation.IfthekWhshadedvaluedeterminedusingthisequationis negative,theproductionforthehourissettozero. kWhshaded=kWhunshadedx(1(1Availability/100)xShadeImpactFactor) Where: =kWhproducedinthehourincludingtheeffectofshading kWhshaded kWhunshaded =kWhproducedinthehourifthearraywascompletelyunshaded Availability=Solaravailabilityfortheperiodincludingthehour ShadeImpactFactor=Factorthataccountsforproductionlossduetoshading ThedefaultShadeImpactFactorshallbe2.0.Thedoublingofshadelossaccountsforthe disproportionateimpactonproductionduetopartialshadingonmodulesandstrings. Technologiesthatcandemonstrateeffectivetolerancetopartialshadinglossesinasystemshall beconsideredbytheEnergyCommissionforalowerShadeImpactFactor.

Mature Tree Height

Theexpectedperformancecalculationsrequirethematureheighttobeusedwhenaccounting fortheshadingimpactofplantedimmaturetreesandplannedtrees.Thissectionprovides guidelinesfordeterminingthematureheightofsuchtrees.Applicantsshallidentifytheheight category(small,medium,orlarge)ofallplantedandplannedtreesatthesite.Thatinformation shallbedocumentedinconjunctionwiththeInstallationCertificateandprovidedtotheverifier forconfirmation.Anyexistingtreewithaheightgreaterthan50feetatthetimeobservations aremadeshallberecordedwithitsactualheightinsteadoftheheightcategoryofitsspecies. Alltreesareclassifiedassmall,medium,orlargebyspecies.Treeswithamatureheightof20 feetorsmalleraresmalltrees.Treeswithamatureheightgreaterthan20feetbutlessthan50 feetaremediumtrees.Treeswithamatureheightgreatertoorequalto50feetarelargetrees.If thetypeoftreeisunknown,itshallbeassumedtobelarge.Thematureheightsofsmall, medium,andlargetreesthatshallbeusedintheexpectedperformancecalculationsare20feet, 35feet,and50feet,respectively.

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 TheCenterforUrbanForestryResearchoftheU.S.DepartmentofAgriculturesForestService haspublishedtreeguidesfortreezonesthatareapplicabletoCalifornia.Table4showsthe appropriatetreeguidetouseforeachofCaliforniasclimatezonesfortheexpected performancecalculations. Theguidesprovidetreeselectionlistsforeachtreezone.Thelistsprovideeitherthemature heightorthesizecategoryinthattreezoneforeachspecies.Thesetreeguidesarepostedat http://www.fs.fed.us/psw/programs/cufr/tree_guides.php. Fortreesnotlistedinthetreeselectiontablesofthetreeguides,theSunsetWesternGardenBook shouldbeconsulted.Thisdocumentprovidesthematureheightrangeormaximumheightfor eachspecies.Ifarangeisgiven,theaverageofthemaximumheightrangeshouldbeusedto determineifthetreeissmall,medium,orlarge.

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Table 4: Appropriate Tree Guide to Use for Each California Climate Zone
CEC Climate Zones 1, 2, 3, 4, 5 Tree Regions Northern California Coast Southern California Coast Tree Guide to Use Under Development (Use Sunset Western Garden Book)

6, 7, 8

McPherson, E.G., et al. 2000. Tree guidelines for coastal Southern California communities. Sacramento, CA: Local Government Commission

Chapter 5, pages 5765 Chapter 6, pages 6582 Chapter 5, pages 5055 Chapter 7, pages 5153 Chapter 5, pages 4755

9, 10

Inland Empire McPherson, E.G., et al. 2001. Tree guidelines for Inland Empire communities. Sacramento, CA: Local Government Commission Inland Valleys McPherson, E.G., et al. 1999. Tree guidelines for San Joaquin Valley communities. Sacramento, CA: Local Government Commission Southwest Desert McPherson, E.G., et al. 2004. Desert southwest community tree guide: benefits, costs and strategic planting. Phoenix, AZ: Arizona Community Tree Council, Inc.

11, 12, 13

14, 15

16

Northern McPherson, E.G, et al. 2003. Northern mountain and Mountain and prairie community tree guide: benefits, costs and strategic Prairie planting. Center for Urban Forest Research, USDA Forest Service, Pacific Southwest Research Station. Source: Energy Commission

Table5showsthehorizontaldistancethattreesofeachmatureheightcategorywouldneedto belocatedfromnearestpointofthePVarrayinordertomeettheconditionofminimalshading.
Table 5: Horizontal Distance Trees Would Need to Be Located From the Closest Point of a PV Array to Qualify for Minimal Shading
Mounting Location 1 Story (Lowest Point of Array at 12 ft) 2 Story (Lowest Point of Array at 22 ft) 3 Story (Lowest Point of Array at 32 ft) Source: Energy Commission Small Tree (20 ft) 16 Any Distance Any Distance Medium Tree (35 ft) 46 26 6 Large Tree (50 ft) 76 56 36

Verification of System Performance

ThePVinstallerandverifiershallconfirmthattheACpoweroutputfromthePVsystemis consistentwiththatpredictedbytheexpectedperformancecalculations.Acalculatorwill determineanestimateofsystemACpoweroutputforarangeofsolarirradianceandoutdoor airtemperatureconditionsandprintatableontheCertificateofComplianceform.Thevalues inthetablewillbe90percentoftheoutputestimatedbyacalculatorforeachsetofconditions inthetable.(Thecalculationsalsoincludethedefaultadjustmentof0.88forlossessuchasdirt, dustandmismatchedwiring.)Thevaluesinthetableareforanunshadedarray.Anexampleof thedatathatwillbeproducedisshowninTable6.ThedatainthetableisspecifictoeachPV system.

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VerificationofsystemperformanceshallbeperformedafterthePVsystemisinstalledand connectedtotheelectricitygrid.Measurementsshallbemadewithaminimumirradianceof 300W/minaplaneparalleltothearray.ThePVinstallerand/ortheverifiershall1)measure thesolarirradianceinaplaneparalleltothearray2)measuretheambientairtemperatureand 3)determinetheexpectedACpoweroutputforthemeasuredfieldconditionsfromthetableon theCertificateofComplianceform.ThePVinstallerortheverifiershallthenobservetheAC poweroutputdisplayedontheinverterandconfirmthattheACpoweroutputisatleastthe amountshowninthetableforthefieldmeasuredconditions.Toqualifyforincentivesunder theseguidelines,PVsystemsshallhaveaperformancemeteroraninverterthathasabuiltin meterthatmeasuresACpoweroutput. ThePVinstallerandverifiershallobservetheACpoweroutputontheinverterafterwaitingfor aperiodofstableconditionsduringwhichthemeasuredsolarirradiancehasstayedconstant within5percent.

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Table 6: Example Table of Expected AC Power Output from Calculator (Watts)

(W/m) 300 325 350 375 400 425 450 475 500 525 550 575 600 625 650 675 700 725 750 775 800 825 850 875 900 925 950 975 1000 1025 1050 1075 1100 1125 1150 1175 1200 T=15 614 665 716 766 817 868 918 967 1016 1065 1113 1161 1209 1256 1302 1348 1394 1439 1483 1526 1569 1611 1653 1693 1733 1772 1811 1980 1980 1980 1980 1980 1980 1980 1980 1980 1980 T=20 606 657 707 757 807 857 907 955 1004 1052 1099 1147 1194 1240 1286 1331 1376 1420 1464 1506 1549 1590 1631 1671 1710 1748 1786 1823 1980 1980 1980 1980 1980 1980 1980 1980 1980 T=25 599 648 698 747 797 846 895 943 991 1038 1085 1132 1178 1224 1269 1314 1358 1401 1444 1487 1528 1569 1609 1648 1687 1725 1762 1798 1980 1980 1980 1980 1980 1980 1980 1980 1980 T=30 591 640 689 738 786 835 883 931 978 1025 1071 1117 1163 1208 1252 1296 1340 1383 1425 1466 1507 1547 1587 1626 1663 1701 1737 1772 1807 1980 1980 1980 1980 1980 1980 1980 1980 T=35 584 632 680 728 776 824 872 919 966 1012 1057 1102 1147 1192 1236 1279 1322 1364 1405 1446 1486 1526 1565 1603 1640 1676 1712 1747 1781 1815 1980 1980 1980 1980 1980 1980 1980 T=40 576 623 671 718 765 813 860 907 953 998 1043 1088 1132 1176 1219 1261 1304 1345 1386 1426 1466 1504 1542 1580 1616 1652 1687 1721 1755 1788 1820 1980 1980 1980 1980 1980 1980 T=45 568 615 662 708 755 802 848 894 940 984 1029 1073 1116 1159 1202 1244 1285 1326 1366 1406 1445 1483 1520 1557 1593 1628 1662 1696 1729 1761 1792 1823 1980 1980 1980 1980 1980 T=50 560 607 653 699 745 790 836 882 927 971 1014 1058 1100 1143 1185 1226 1267 1307 1346 1385 1423 1461 1498 1534 1569 1603 1637 1670 1702 1734 1765 1795 1825 1980 1980 1980 1980 T=55 553 598 643 689 734 779 824 869 913 957 1000 1043 1085 1126 1168 1208 1248 1288 1327 1365 1402 1439 1475 1510 1545 1579 1612 1644 1676 1706 1737 1767 1796 1824 1980 1980 1980 T=60 544 590 634 679 723 768 812 856 900 943 986 1027 1069 1110 1150 1190 1230 1269 1307 1344 1381 1417 1452 1487 1521 1554 1586 1618 1649 1679 1709 1738 1766 1794 1822 1980 1980 T=65 536 581 625 669 713 757 800 843 887 929 971 1012 1053 1093 1133 1172 1211 1249 1287 1323 1360 1395 1430 1464 1497 1529 1561 1592 1622 1652 1681 1709 1737 1764 1791 1817 1980 T=70 528 572 616 659 702 745 788 831 873 915 956 997 1037 1077 1116 1154 1192 1230 1267 1303 1338 1373 1407 1440 1473 1505 1536 1566 1595 1624 1653 1680 1708 1734 1760 1786 1810 T=75 520 564 606 649 691 734 776 818 860 901 942 982 1021 1060 1098 1136 1174 1210 1246 1282 1317 1351 1384 1417 1449 1480 1510 1540 1569 1597 1624 1652 1678 1704 1729 1754 1778 T=80 512 555 597 639 681 722 764 805 846 887 927 966 1005 1043 1081 1118 1155 1191 1226 1261 1295 1328 1361 1393 1424 1455 1484 1513 1542 1569 1596 1623 1648 1674 1698 1722 1746 T=85 504 546 588 629 670 711 752 792 832 872 912 951 989 1026 1063 1100 1136 1171 1206 1240 1273 1306 1338 1369 1400 1430 1459 1487 1514 1541 1568 1593 1619 1643 1667 1691 1714 T=90 496 537 578 619 659 699 739 779 819 858 897 935 972 1009 1046 1081 1117 1151 1185 1219 1252 1284 1315 1345 1375 1404 1433 1460 1487 1513 1539 1564 1589 1613 1636 1659 1681 T=95 487 528 569 609 648 688 727 766 805 843 882 919 956 992 1028 1063 1098 1132 1165 1198 1230 1261 1292 1322 1351 1379 1407 1434 1460 1486 1511 1535 1559 1582 1605 1627 1649 T=100 479 519 559 598 637 676 715 753 791 829 866 903 940 975 1010 1045 1078 1112 1144 1176 1208 1238 1268 1298 1326 1354 1381 1407 1432 1457 1482 1506 1529 1551 1573 1595 1616 T=105 471 510 550 588 626 664 702 740 777 814 851 887 923 958 992 1026 1059 1092 1124 1155 1186 1216 1245 1273 1301 1328 1354 1380 1405 1429 1453 1476 1499 1520 1542 1563 1583 T=110 463 501 540 578 615 653 690 727 763 800 836 871 906 941 974 1007 1040 1072 1103 1134 1164 1193 1221 1249 1276 1302 1328 1353 1377 1401 1424 1446 1468 1490 1510 1530 1550 T=115 454 492 530 568 604 641 677 714 750 785 820 855 890 924 957 989 1021 1052 1082 1112 1141 1170 1198 1225 1251 1277 1302 1326 1349 1372 1395 1417 1438 1458 1479 1498 1517 T=120 446 483 520 557 593 629 665 700 736 770 805 839 873 906 939 970 1001 1032 1061 1090 1119 1147 1174 1200 1226 1251 1275 1299 1322 1344 1365 1387 1407 1427 1447 1466 1484

Source: Energy Commission

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Measuring Solar Irradiance

Solarirradianceshallbemeasuredusinganirradiancemeter.Whenmakingthis measurement,thePVinstallerorverifiershallplacetheirradiancemeterinaplanethat isparalleltothePVmodules.ThePVinstallershouldpositiontheirradiancemeteron topofthePVmodulesorontheroofnexttothePVmodules.Iftheverifierisnotableto getontheroof,heorsheshallpositiontheirradiancemetersuchthatitisinfullsunand isinplanethatisparalleltothePVmodules.Digitalprotractorsorotherinstruments maybeusedtoproperlypositiontheirradiancemeter.

Measuring Ambient Air Temperature

Ambientairtemperatureshallbemeasuredwithadigitalthermometerintheshade.The instrumentshallhaveanaccuracyof2oC.

Observing AC Power Output at the Inverter

ThePVinstallerandtheverifiershallobserveandrecordthereadingassoonaspossible aftermakingthemeasurementsofsolarirradianceandambienttemperature.The invertermaycyclebetweenmultiplereadings(totalkWhofproduction,ACpower output,etc.),sothePVinstallerorverifierwillneedtowaituntilthepowerisdisplayed andrecordthisreading;severalreadingsshouldbemadetomakesurethattheyare consistentandstable.

Multiple Orientation Arrays

Multipleorientationarraysarethosewithparallelstrings,eachwithanequalnumberof modules,indifferentorientations(azimuthandtilt)connectedtothesameinverter. 73 Whenparallelstringsindifferentorientationsareconnectedtothesameinverter, separateCertificateofComplianceformsshallbepreparedforeachorientation,and solarirradianceshallbemeasuredseparatelyinaplaneparalleltoeachorientation.The expectedACpoweroutputisdeterminedseparatelyforeachorientation,andthesumis usedforverificationpurposes. Forexample,aqualifying3kWPVsystemhas20modulesgroupedevenlyintotwo parallelstringsof10moduleseach,onefacingsouthwithanazimuthof170degreesand onefacingwestwithanazimuthof260degrees.Theverifierevaluatessystem performanceat11:30AMinMarchwithanambienttemperatureof62F.Theverifier

73Substantialreductionsinperformancewillresultiftherearedifferentnumbersofmodulesin eachstringorifthestringswithdifferentorientationsareconnectedinseries.

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measures950W/mofsolarirradianceintheplaneparalleltothesoutharrayand500 W/minaplaneparalleltothewestfacingarray. 74 ThetotalexpectedACpoweroutputtableontheCertificateofComplianceindicates thatthesystemshouldbeproducing1,200Wat950W/mand700Wat500W/mof solarirradiance.TheexpectedACpoweroutputiscalculatedas1,900Wbysummation ofeachorientationsexpectedACpoweroutput(1,200W+700W=1,900W).This calculatedvaluemustbecomparedtotheinverterdisplay.

Installer System Inspection

Thesesteps 75 shallbefollowedbythePVinstalleriftheprogramadministratorallows fortheexemptionfromperformingthefieldverificationprotocol.ThePVinstallershall completethefollowingstepsunderrelativelystablesolarirradianceconditionsand submitacopyofasignedcertificateofcompletingthesameoneverysystem. Thesestepsareonlyapplicableforsystemsthathavetwoormoresourcecircuits (strings)connectedinparalleltothesameinverterandwherethesourcecircuitsbeing evaluatedreceiveconsistentsolarirradianceasaresultofhavingthesameazimuthand tiltandbeingsubjecttoconsistentshadingimpacts.ForallothersystemsthePV installershallfollowthesameprotocolasthefieldverifier. 1. Completeavisualcheckofthesystemtoensurethemodulesandallother systemcomponentsareboltedsecurely,andallwiringconnectionshavebeen madeproperlyaccordingtothesystemschematic,manufacturersinstructions, andapplicableelectricalcoderequirements. 2. Checkthepolarityofallsourcecircuitstobecorrect. 3. Theopencircuitvoltagesofsourcecircuitsshallbetestedandmeasuredtobe within2percentofeachother. 4. Theoperatingcurrentofeachsourcecircuitshallbetestedandmeasuredwitha clamponmetertobewithin5percentofeachother. 76
74Whentestingsystemswithmultipleorientationarrays,thesolarirradiancelevelsonallarrays mustremainconstantwithin5percentasdiscussedinVerificationofSystemPerformance above. 75ThestepsarebasedontheNorthAmericanBoardofCertifiedEnergy(NABCEP)StudyGuide forPhotovoltaicSystemInstallersrecommendationsforPerformingaSystemCheckoutand Inspection.Thisdocumentprovidesimportantinformationregardingproperproceduresand safetyprecautions. 76Measurementofoperatingcurrenthasbeensubstitutedforthemeasurementofshortcircuit currentspecifiedintheNABCEPdocument.

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APPENDIX 3: Senate Bill 1 (Murray, Chapter 132, Statutes of 2006)

SENATEBILLNO.1 CHAPTER132 An act to add Sections 25405.5 and 25405.6 to, and to add Chapter 8.8 (commencingwithSection25780)toDivision15of,thePublicResources Code,andtoamendSection2827of,andtoaddSections387.5and2851 to,thePublicUtilitiesCode,relatingtosolarelectricity. LEGISLATIVECOUNSELSDIGEST SB1,MurrayElectricity:solarenergy:netmetering. (1)Existinglawrequires theState Energy ResourcesConservation and Development Commission (Energy Commission) to expand and accelerate development of alternative sources of energy, including solar resources.Existing law requirestheEnergy Commissionto developand adopt regulations governing solar devices, as defined, designed to encourage the development and use of solar energy and to provide maximuminformationtothepublicconcerningsolardevices. ThisbillwouldrequirebeginningJanuary1,2011,asellerofproduction homes,asdefined,tooffertheoptionofasolarenergysystem,asdefined, to all customers negotiating to purchase a new production home constructed on land meeting certain criteria and to disclose certain information. The bill would require the Energy Commission to develop anoffsetprogramthatallowsadeveloperorsellerofproductionhomes to forgo the offer requirement on a project by installing solar energy systemsgeneratingspecifiedamountsofelectricityonotherprojects.The billwouldrequire,notlaterthanJuly1,2007,theEnergyCommissionto initiate a public proceeding to study and make findings whether, and underwhatconditions,solarenergysystemsshouldberequiredonnew residentialandnonresidentialbuildingsandtoperiodicallyupdate thestudythereafter. (2) Under existing law, the Public Utilities Commission (PUC) has regulatory authority over public utilities, including electrical corporations.ExistinglawrequiredthePUC,onorbeforeMarch7,2001, and in consultation with the Independent System Operator, to take

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certain actions, including, in consultation with the Energy Commission, adopting energy conservation demandside management and other initiatives in order to reduce demand for electricity and reduce load during peak demand periods, including differential incentives for renewable or super clean distributed generation resources. Pursuant to this requirement, the PUC has developed a selfgeneration incentive program to encourage customers of electrical corporations to install distributed generation that operates on renewable fuel or contributes to systemreliability.ExistinglawrequiresthePUC,inconsultationwiththe Energy Commission, to administer, until January 1, 2008, a self generationincentiveprogramfordistributedgenerationresourcesinthe sameformthatexistedonJanuary1,2004,subjecttocertainairemissions and efficiency standards. In a PUC decision, the PUC adopted the California Solar Initiative, which modified the selfgeneration incentive programfordistributed generation resourcesand provides incentivesto customersidephotovoltaicsandsolarthermalelectricprojectsunderone megawatt. This bill would require the PUC, in implementing the California Solar Initiative,toauthorizetheawardofmonetaryincentivesforuptothefirst megawatt of alternating current generated by an eligible solar energy system, that meets the eligibility criteria established by the Energy Commission. The bill would authorize the commission, prior to the establishment of eligibility criteria by the Energy Commission, to determine the eligibility of a solar energy system, as defined, to receive monetary incentives. The bill would require that awards of monetary incentives decline at a rate of an average of at least 7% for each year following implementation, and be zero by December 31, 2016. The bill wouldrequirethePUC,byJanuary1,2008,toadoptaperformancebased incentiveprogram,asspecified.ThebillwouldrequirethatthePUC,by January1,2008,andinconsultationwiththeEnergyCommission,require reasonableandcosteffectiveenergyefficiency improvementsinexisting buildingsasaconditionofprovidingincentivesforeligiblesolarenergy systems. The bill would require the commission to require timevariant pricing for all ratepayers with a solar energy system. The bill would prohibit costs of the program from being recovered from certain customersandwouldrequirethecommissiontoensurethatthetotalcost over the duration of the program does not exceed $3,350,800,000, consisting of 3 specified program components.The bill would authorize thePUCtoawardmonetaryincentivesforsolarthermalandsolarwater heating devices, in a total amount up to $100,800,000. The bill would prohibit the PUC from allocating more than $50,000,000 for certain research, development, and demonstration. The bill would require that byJune30,2009,andbyJune30ofeveryyearthereafter,thePUCsubmit

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to the Legislature an assessment of the success of the California Solar Initiativeprogram,thatincludesspecifiedinformation. ThisbillwouldrequiretheEnergyCommission,byJanuary1,2008,and in consultationwiththePUC,localpublicly owned electricutilities, and interested members of the public, to establish and thereafter revise eligibilitycriteriaforsolarenergysystemsandtoestablishconditionsfor ratepayer funded incentives that are applicable to the California Solar Initiative. The bill would require the Energy Commission to adopt guidelinesforsolarenergysystemsreceivingratepayerfundedincentives at a publicly noticed meeting. The bill would, upon establishment of eligibility criteria by the Energy Commission, prohibit ratepayer funded incentivesfrombeingmadeforasolarenergysystemthatdoesnotmeet the eligibility criteria. The bill would require the Energy Commission to makecertaininformationavailabletothepublic,toprovideassistanceto builders and contractors, and to conduct random audits of solar energy systemstoevaluatetheiroperationalperformance. This bill would require all local publicly owned electric utilities, as defined, that sell electricity at retail, on or before January 1, 2008, to adopt, implement, and finance a solar initiative program, as prescribed, forthepurposeofinvestingin,andencouragingtheincreasedinstallation of, residential and commercial solar energy systems. The bill would require a local publicly owned electric utility to make certain program information available to its customers, to the Legislature, and to the Energy Commission on an annual basis beginning June 1, 2008. By imposing additional duties upon local publicly owned electric utilities, thebillwouldtherebyimposeastatemandatedlocalprogram. (3) Existing law requires all electric service providers, as defined, to develop a standard contract or tariff providing for net energy metering, andtomakethiscontractavailabletoeligiblecustomergenerators,upon request.Existinglawrequiresallelectricserviceproviders,uponrequest, tomakeavailabletoeligiblecustomergeneratorscontractsfornetenergy metering on a firstcomefirstserved basis until the time that the total rated generating capacity used by eligible customer generators exceeds 0.5%oftheelectricserviceprovidersaggregatecustomerpeakdemand. This bill would require the PUC to order electric service providers to expand the availability of net energy metering so that it is offered on a firstcomefirstservedbasisuntilthetimethatthetotalratedgenerating capacity used by all eligible customergenerators exceeds 2.5% of the electric service providers aggregate customer peak demand. The bill would require the PUC, by January 1, 2010, in consultation with the EnergyCommission,tosubmitareporttotheGovernorandLegislature on the costs and benefits of net energy metering, wind energy co metering, and coenergy metering to participating customers and

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nonparticipating customers and with options to replace the economic costs of different forms of net metering with a mechanism that more equitably balances the interests of participating and nonparticipating customers. (4) Existing law, the Contractors State License Law, provides for the licensure and regulation of contractors by the Contractors State License Board. This bill would require the board to review and, if needed, revise its licensing classifications and examinations to ensure that contractors authorized to perform work on solar energy systems, as specified, have therequisitequalificationstoperformthework. (5) The California Constitution requires the state to reimburse local agencies and school districts for certain costs mandated by the state. Statutory provisions establish procedures for making that reimbursement. This bill would provide that no reimbursement is required by this act forspecifiedreasons. THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS: SECTION 1. (a) The Legislature finds and declares that the Public Utilities Commission (PUC) adopted the California Solar Initiative in Decision0601024. (b)NothinginthisactshallbeconstruedtocodifyPUCDecision0601 024. SEC.2.Section25405.5isaddedtothePublicResourcesCode,toread: 25405.5. (a) As used in this section, the following terms have the followingmeanings: (1) kW means kilowatts or 1,000 watts, as measured from the alternating current side of the solar energy system inverter consistent withSection223ofTitle15oftheUnitedStatesCode. (2) Production home means a singlefamily residence constructed as partofadevelopmentofatleast50homesperprojectthatisintendedor offeredforsale. (3) Solar energy system means a solar energy device that has the primarypurposeofprovidingforthecollectionanddistributionofsolar energyforthegenerationofelectricity,thatproducesatleastonekW,and not morethanfivemegawatts, alternatingcurrent rated peak electricity, and that meets or exceeds the eligibility criteria established pursuant to Section25782.

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(b)Asellerofproductionhomesshallofferasolarenergysystemoption toallcustomersthatenterintonegotiationstopurchaseanewproduction home constructed on land for which an application for a tentative subdivisionmaphasbeendeemedcompleteonorafterJanuary1,2011, anddisclosethefollowing: (1)Thetotalinstalledcostofthesolarenergysystemoption. (2) Theestimatedcostsavingsassociated withthesolar energy system option, as determined by the commission pursuant to Chapter 8.8 (commencingwithSection25780)ofDivision15. (c) The State Energy Resources Conservation and Development Commission shall develop an offset program that allows a developer or seller ofproductionhomes to forgo theoffer requirement ofthis section on a project, by installing solar energy systems generating specified amountsofelectricityonotherprojects,including,butnotlimitedto,low income housing, multifamily, commercial, industrial, and institutional developments. The amount of electricity required to be generated from solarenergysystemsusedasanoffsetpursuanttothissubdivisionshall be equal to the amount of electricity generated by solar energy systems installed on a similarly sized project within that climate zone, assuming 20 percent of the prospective buyers would have installed solar energy systems. (d)Therequirementsofthissectionshallnotoperateasasubstitutefor the implementation of existing energy efficiency measures, and the requirements of this section shall not result in lower energy savings or lower energy efficiency levels than would otherwise be achieved by the full implementation of energy savings and energy efficiency standards establishedpursuanttoSection25402. SEC.3.Section25405.6isaddedtothePublicResourcesCode,toread: 25405.6. Not later than July 1, 2007, the commission shall initiate a publicproceedingtostudyandmakefindingswhether,andunderwhat conditions, solar energy systems should be required on new residential and new nonresidential buildings, including the establishment of numerical targets. As part of the study, the commission may determine thatasolarenergysystemshouldnotberequiredforanybuildingunless the commission determines, based upon consideration of all costs associated with the system, that the system is cost effective when amortizedovertheeconomiclifeofthestructure.Whendeterminingthe costeffectiveness of the solar energy system, the commission shall consider the availability of governmental rebates, tax deductions, net metering,andotherquantifiablefactors,ifthecommissioncandetermine the availability of these financial incentives if a solar energy system is made mandatory and not elective. The commission shall periodically update the study and incorporate any revision that the commission

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determines is necessary, including revisions that reflect changes in the financial incentives originally considered by the commission when determiningcosteffectivenessofthesolarenergysystem.Forpurposesof thissection,solarenergysystemmeansaphotovoltaicsolarcollectoror other photovoltaic solar energy device that has a primary purpose of providing for the collection and distribution of solar energy for the generationofelectricity.Thissectionisintendedtobeforstudypurposes only and does not authorize the commission to develop and adopt any requirement for solar energy systems on either residential or nonresidentialbuildings. SEC. 4. Chapter 8.8 (commencing with Section 25780) is added to Division15ofthePublicResourcesCode,toread: CHAPTER8.8.CaliforniaSolarInitiative 25780.TheLegislaturefindsanddeclaresbothofthefollowing: (a) It is the goal of the state to install solar energy systems with a generation capacity equivalent of 3,000 megawatts, to establish a self sufficient solar industry in which solar energy systems are a viable mainstream option for both homes and businesses in 10 years, and to placesolarenergysystemson50percentofnewhomesin13years. (b)Asolarinitiativeshouldbeacosteffectiveinvestmentbyratepayers in peak electricity generation capacity where ratepayers recoup the cost oftheirinvestmentthroughlowerratesasaresultofavoidingpurchases of electricity at peak rates, with additional system reliability and pollutionreductionbenefits. 25781.Asusedinthischapter,thefollowingtermshavethefollowing meanings: (a)CaliforniaSolarInitiativemeanstheprogramprovidingratepayer fundedincentivesforeligiblesolarenergysystemsadoptedbythePublic UtilitiesCommissioninDecision0601024. (b) kW means kilowatts or 1,000 watts, as measured from the alternating current side of the solar energy system inverter consistent withSection223ofTitle15oftheUnitedStatesCode. (c) kWh means kilowatthours, as measured by the number of kilowattsgeneratedinanhour. (d)MWmeansmegawattsor1,000,000watts. (e) Solar energy system means a solar energy device that has the primarypurposeofprovidingforthecollectionanddistributionofsolar energyforthegenerationofelectricity,thatproducesatleastonekW,and not more than five MW, alternating current rated peak electricity, and that meets or exceeds the eligibility criteria established pursuant to Section25782.

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25782. (a) The commission shall, by January 1, 2008, in consultation with the Public Utilities Commission, local publicly owned electric utilities,andinterestedmembersofthepublic,establisheligibilitycriteria for solar energy systems receiving ratepayer funded incentives that includeallofthefollowing: (1)Design,installation,andelectricaloutputstandardsorincentives. (2)Thesolarenergysystemisintendedprimarilytooffsetpartorallof theconsumersownelectricitydemand. (3)Allcomponentsinthesolarenergysystemarenewandunused,and have not previously been placed in service in any other location or for anyotherapplication. (4)Thesolarenergysystemhasawarrantyofnotlessthan10yearsto protect against defects and undue degradation of electrical generation output. (5)Thesolarenergysystemislocatedonthesamepremisesoftheend useconsumerwheretheconsumersownelectricitydemandislocated. (6) The solar energy system is connected to the electrical corporations electricaldistributionsystemwithinthestate. (7) The solar energy system has meters or other devices in place to monitor and measure the systems performance and the quantity of electricitygeneratedbythesystem. (8) The solar energy system is installed in conformance with the manufacturers specifications and in compliance with all applicable electricalandbuildingcodestandards. (b) The commission shall establish conditions on ratepayer funded incentivesthatrequireallofthefollowing: (1) Appropriate siting and high quality installation of the solar energy system by developing installation guidelines that maximize the performance of the system and prevent qualified systems from being inefficiently or inappropriately installed. The conditions established by the commission shall not impact housing designs or densities presently authorized by a city, county, or city and county. The goal of this paragraph is to achieve efficient installation of solar energy systems to promotethegreatestenergyproductionperratepayerdollar. (2) Optimal solar energy system performance during periods of peak electricitydemand. (3)Appropriateenergyefficiencyimprovementsintheneworexisting homeorcommercialstructurewherethesolarenergysystemisinstalled. (c) The commission shall set rating standards for equipment, components, and systems to assure reasonable performance and shall develop standards that provide for compliance with the minimum ratings.

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(d)Uponestablishmentofeligibilitycriteriapursuanttosubdivision(a), no ratepayer funded incentives shall be made for a solar energy system thatdoesnotmeettheeligibilitycriteria. 25783.Thecommissionshalldoallthefollowing: (a)Publisheducationalmaterialsdesignedtodemonstratehowbuilders may incorporate solar energy systems during construction as well as energyefficiencymeasuresthatbestcomplementsolarenergysystems. (b)Developandpublishtheestimatedannualelectricalgenerationand savings for solar energy systems. The estimates shall vary by climate zone, type of system, size, lifecycle costs, electricity prices, and other factors the commission determines to be relevant to a consumer when makingapurchasingdecision. (c) Provide assistance to builders and contractors. The assistance may includetechnicalworkshops,training,educationalmaterials,andrelated research. (d) The commission shall annually conduct random audits of solar energysystemstoevaluatetheiroperationalperformance. (e) The commission, in consultation with the Public Utilities Commission,shallevaluatethecostsandbenefitsofhavinganincreased number of operational solar energy systems as a part of the electrical system with respect to their impact upon the distribution, transmission, and supply of electricity, using the best available load profiling and distribution operations data from the Public Utilities Commission, local publicly owned electric utilities, and electrical corporations, and performanceauditsofinstalledsolarenergysystems. 25784.Thecommissionshalladoptguidelinesforsolarenergysystems receiving ratepayer funded incentives at a publicly noticed meeting offering all interested parties an opportunity to comment. Not less than 30 days public notice shall be given of the meeting required by this section, before the commission initially adopts guidelines. Substantive changes to the guidelines shall not be adopted without at least 10 days writtennoticetothepublic.Notwithstandinganyotherprovisionoflaw, anyguidelinesadoptedpursuanttothischaptershallbeexemptfromthe requirementsofChapter3.5(commencingwithSection11340)ofPart1of Division3ofTitle2oftheGovernmentCode. SEC.5.Section387.5isaddedtothePublicUtilitiesCode,toread: 387.5. (a) In order to further the state goal of encouraging the installationof3,000megawattsofphotovoltaicsolarenergyinCalifornia within 10 years, the governing body of a local publicly owned electric utility,asdefinedinsubdivision(d)ofSection9604,thatsellselectricityat retail, shall adopt, implement, and finance a solar initiative program, funded in accordance with subdivision (b), for the purpose of investing

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in, and encouraging the increased installation of, residential and commercialsolarenergysystems. (b)OnorbeforeJanuary1,2008,alocalpubliclyownedelectricutility shalloffermonetaryincentivesfortheinstallationofsolarenergysystems of at least two dollars and eighty cents ($2.80) per installed watt, or for the electricity produced by the solar energy system, measured in kilowatthours,asdeterminedbythegoverningboardofa localpublicly owned electric utility, for photovoltaic solar energy systems. The incentivelevelshalldeclineeachyearthereafteratarateofnolessthan anaverageof7percentperyear. (c) A local publicly owned electric utility shall initiate a public proceeding to fund a solar energy program to adequately support the goal of installing 3,000 megawatts of photovoltaic solar energy in California. The proceeding shall determine what additional funding, if any, is necessary to provide the incentives pursuant to subdivision (b). The public proceeding shall be completed and the comprehensive solar energyprogramestablishedbyJanuary1,2008. (d) The solar energy program of a local publicly owned electric utility shallbeconsistentwithallofthefollowing: (1) That a solar energy system receiving monetary incentives comply with the eligibility criteria, design, installation, and electrical output standards or incentives established by the State Energy Resources ConservationandDevelopmentCommissionpursuanttoSection25782of thePublicResourcesCode. (2) That solar energy systems receiving monetary incentives are intendedprimarilytooffsetpartor all of theconsumers own electricity demand. (3)Thatallcomponentsinthesolarenergysystemarenewandunused, and have not previously been placed in service in any other location or foranyotherapplication. (4)Thatthesolarenergysystemhasawarrantyofnotlessthan10years toprotectagainstdefectsandunduedegradationofelectricalgeneration output. (5)Thatthesolarenergysystembelocatedonthesamepremisesofthe enduse consumer where the consumers own electricity demand is located. (6) That the solar energy system be connected to the electric utilitys electricaldistributionsystemwithinthestate. (7)Thatthesolarenergysystemhasmetersorotherdevicesinplaceto monitor and measure the systems performance and the quantity of electricitygeneratedbythesystem.

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(8) That the solar energy system be installed in conformance with the manufacturers specifications and in compliance with all applicable electricalandbuildingcodestandards. (e) A local publicly owned electric utility shall, on an annual basis beginning June 1, 2008, make available to its customers, to the Legislature, and to the State Energy Resources Conservation and Development Commission, information relating to the utilitys solar initiativeprogramestablishedpursuanttothissection,including,butnot limited to, the number of photovoltaic solar watts installed, the total numberofphotovoltaicsystemsinstalled,thetotalnumberofapplicants, the amount of incentives awarded, and the contribution toward the programgoals. (f)Inestablishingtheprogramrequiredbythissection,nomoneysshall be diverted from any existing programs for lowincome ratepayers, or fromcosteffectiveenergyefficiencyordemandresponseprograms. (g) The statewide expenditures for solar programs adopted, implemented,andfinancedbylocalpubliclyownedelectricutilitiesshall be seven hundred eightyfour million dollars ($784,000,000). The expenditure level for each local publicly owned electric utility shall be basedonthatutilityspercentageofthetotalstatewideloadservedbyall local publicly owned electric utilities. Expenditures by a local publicly ownedelectricutilitymaybelessthantheutilityscapamount,provided that funding is adequate to provide the incentives required by subdivisions(a)and(b). SEC.6.Section2827ofthePublicUtilitiesCodeisamendedtoread: 2827.(a)TheLegislaturefindsanddeclaresthataprogramtoprovide net energy metering for eligible customergenerators is one way to encouragesubstantialprivateinvestmentinrenewableenergyresources, stimulateinstateeconomicgrowth,reducedemandforelectricityduring peak consumption periods, help stabilize Californias energy supply infrastructure, enhance the continued diversification of Californias energyresourcemix,andreduceinterconnectionandadministrativecosts forelectricitysuppliers. (b)Asusedinthissection,thefollowingdefinitionsapply: (1) Electric service provider means an electrical corporation, as definedinSection218,alocalpubliclyownedelectricutility,asdefinedin Section 9604, or an electrical cooperative, as defined in Section 2776, or anyotherentitythatofferselectricalservice.Thissectionshallnotapply toalocalpubliclyownedelectricutility,asdefinedinSection9604ofthe Public Utilities Code, that serves more than 750,000 customers and that alsoconveyswatertoitscustomers. (2)Eligiblecustomergeneratormeansaresidential,smallcommercial customer as defined in subdivision (h) of Section 331, commercial,

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industrial, or agricultural customer of an electric service provider, who uses a solar or a wind turbine electrical generating facility, or a hybrid system of both, with a capacity of not more than one megawatt that is located on the customers owned, leased, or rented premises, is interconnected and operates in parallel with the electric grid, and is intended primarily to offset part or all of the customers own electrical requirements. (3)Netenergymeteringmeansmeasuringthedifferencebetweenthe electricitysuppliedthroughtheelectricgridandtheelectricitygenerated byaneligiblecustomergeneratorandfedbacktotheelectricgridovera 12month period as described in subdivision (h). Net energy metering shallbeaccomplishedusingasinglemetercapableofregisteringtheflow ofelectricityintwodirections.Anadditionalmeterormeterstomonitor theflowofelectricityineachdirectionmaybeinstalledwiththeconsent ofthecustomergenerator,attheexpenseoftheelectricserviceprovider, andtheadditionalmeteringshallbeusedonlytoprovidetheinformation necessarytoaccurately billor credit thecustomergenerator pursuant to subdivision (h), or to collect solar or wind electric generating system performance information for research purposes. If the existing electrical meter of an eligible customergenerator is not capable of measuring the flow of electricity in two directions, the customergenerator shall be responsibleforallexpensesinvolvedinpurchasingandinstallingameter thatisabletomeasureelectricityflowintwodirections.Ifanadditional meter or meters are installed, the net energy metering calculation shall yield a result identical to that of a single meter. An eligible customer generator who already owns an existing solar or wind turbine electrical generating facility, or a hybrid system of both, is eligible to receive net energymeteringserviceinaccordancewiththissection. (4) Wind energy cometering means any wind energy project greater than50kilowatts,butnotexceedingonemegawatt,wherethedifference between the electricity supplied through the electric grid and the electricity generated by an eligible customergenerator and fed back to theelectricgridovera12monthperiodisasdescribedinsubdivision(h). Wind energy cometering shall be accomplished pursuant to Section 2827.8. (5)Coenergymeteringmeansaprogramthatisthesameinallother respectsasanetenergymeteringprogram,exceptthatthelocalpublicly owned electric utility, as defined in Section 9604, has elected to apply a generationtogeneration energy and timeofuse credit formula as providedinsubdivision(i). (6) Ratemaking authority means, for an electrical corporation as defined in Section 218, or an electrical cooperative as defined in Section 2776, the commission, and for a local publicly owned electric utility as

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definedinSection9604,thelocalelectedbodyresponsibleforregulating theratesofthelocalpubliclyownedutility. (c)(1)Everyelectricserviceprovidershalldevelopastandardcontract ortariff providingfornet energymetering, and shall makethis contract available to eligible customergenerators, upon request, on a firstcome firstserved basis until the time that the total rated generating capacity used by eligible customergenerators exceeds 2.5 percent of the electric serviceprovidersaggregatecustomerpeakdemand. (2) On an annual basis, beginning in 2003, every electric service providershallmakeavailabletotheratemakingauthorityinformationon the total rated generating capacity used by eligible customergenerators that are customers of that provider in the providers service area. For those electric service providers who are operating pursuant to Section 394, they shall make available to the ratemaking authority the information required by this paragraph for each eligible customer generator that is their customer for each service area of an electric corporation,localpubliclyownedelectricutility,orelectricalcooperative, inwhichthecustomerhasnetenergymetering.Theratemakingauthority shall develop a process for making the information required by this paragraph available to energy service providers, and for using that information to determine when, pursuant to paragraph (3), a service provider is not obligated to provide net energy metering to additional customergeneratorsinitsservicearea. (3) Notwithstanding paragraph (1), an electric service provider is not obligated to provide net energy metering to additional customer generatorsinitsserviceareawhenthecombinedtotalpeakdemandofall customergenerators served by all the electric service providers in that service area furnishing net energy metering to eligible customer generatorsexceeds2.5percentoftheaggregatecustomerpeakdemandof thoseelectricserviceproviders. (4) By January 1, 2010, the commission, in consultation with the State Energy Resources Conservation and Development Commission, shall submit a report to the Governor and the Legislature on the costs and benefitsofnetenergymetering,windenergycometering,andcoenergy meteringtoparticipatingcustomersandnonparticipatingcustomersand with options to replace the economic costs and benefits of net energy metering, wind energy cometering, and coenergy metering with a mechanismthatmoreequitablybalancestheinterestsofparticipatingand nonparticipating customers, and that incorporates the findings of the reportoneconomicandenvironmentalcostsandbenefitsofnetmetering requiredbysubdivision(n).

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(d) Electric service providers shall make all necessary forms and contracts for net metering service available for download from the Internet. (e) (1) Every electric service provider shall ensure that requests for establishmentofnetenergymeteringareprocessedinatimeperiodnot exceeding that for similarly situated customers requesting new electric service, but not to exceed 30 working days from the date the electric service provider receives a completed application form for net metering service, including a signed interconnection agreement from an eligible customergenerator and the electric inspection clearance from the governmentalauthorityhavingjurisdiction.Ifanelectricserviceprovider is unable to process the request within the allowable timeframe, the electricserviceprovidershallnotifyboththecustomergeneratorandthe ratemakingauthorityofthereasonforitsinabilitytoprocesstherequest andtheexpectedcompletiondate. (2) Electric service providers shall ensure that requests for an interconnection agreement from an eligible customergenerator are processedinatimeperiodnottoexceed30workingdaysfromthedate the electric service provider receives a completed application form from the eligible customergenerator for an interconnection agreement. If an electric service provider is unable to process the request within the allowable timeframe, the electric service provider shall notify the customergenerator and the ratemaking authority of the reason for its inabilitytoprocesstherequestandtheexpectedcompletiondate. (f) (1) If a customer participates in direct transactions pursuant to paragraph (1) of subdivision (b) of Section 365 with an electric supplier that doesnotprovide distribution service for thedirect transactions,the service provider that provides distribution service for an eligible customergeneratorisnotobligatedtoprovidenetenergymeteringtothe customer. (2) If a customer participates in direct transactions pursuant to paragraph (1) of subdivision (b) of Section 365with an electric supplier, and the customer is an eligible customergenerator, the service provider thatprovidesdistributionserviceforthedirecttransactionsmayrecover from the customers electric service provider the incremental costs of meteringandbillingservicerelatedtonetenergymeteringinanamount setbytheratemakingauthority. (g)Exceptforthetimevariantkilowatthourpricingportionofanytariff adoptedbythecommissionpursuanttoparagraph(4)ofsubdivision(a) of Section 2851, each net energy metering contract or tariff shall be identical, with respect to rate structure, all retail rate components, and anymonthlycharges,tothecontractortarifftowhichthesamecustomer would be assigned if the customer did not use an eligible solar or wind

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electrical generating facility, except that eligible customergenerators shallnotbeassessedstandbychargesontheelectricalgeneratingcapacity or the kilowatthour production of an eligible solar or wind electrical generatingfacility.Thechargesforallretailratecomponentsforeligible customergenerators shall be based exclusively on the customer generators net kilowatthour consumption over a 12month period, without regard to the customergenerators choice of electric service provider. Any new or additional demand charge, standby charge, customer charge, minimum monthly charge, interconnection charge, or any other charge that would increase an eligible customergenerators costs beyond those of other customers who are not customergenerators intherateclasstowhichtheeligiblecustomergeneratorwouldotherwise beassignedifthecustomerdidnotown,lease,rent,orotherwiseoperate an eligible solar or wind electrical generating facility are contrary to the intent of this section, and shall not form a part of net energy metering contractsortariffs. (h) For eligible residential and small commercial customergenerators, the net energy metering calculation shall be made by measuring the difference between the electricity supplied to the eligible customer generatorandtheelectricitygeneratedbytheeligiblecustomergenerator and fed back to the electric grid over a 12month period. The following rulesshallapplytotheannualizednetmeteringcalculation: (1) The eligible residential or small commercial customergenerator shall, at the end of each 12month period following the date of final interconnection of the eligible customergenerators system with an electricserviceprovider,andateachanniversarydatethereafter,bebilled forelectricityusedduringthatperiod.Theelectricserviceprovidershall determine if the eligible residential or small commercial customer generatorwasanetconsumeroranetproducerofelectricityduringthat period. (2) At the end of each 12month period, where the electricity supplied during the period by the electric service provider exceeds the electricity generated by the eligible residential or small commercial customer generator during that same period, the eligible residential or small commercial customergenerator is a net electricity consumer and the electric service provider shall be owed compensation for the eligible customergenerators net kilowatthour consumption over that same period. The compensation owed for the eligible residential or small commercial customergenerators consumption shall be calculated as follows: (A) For all eligible customergenerators taking service under tariffs employing baseline and over baseline rates, any net monthly consumption of electricity shall be calculated according to the terms of

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thecontractortarifftowhichthesamecustomerwouldbeassignedtoor be eligible for if the customer was not an eligible customergenerator. If thosesamecustomergeneratorsarenetgeneratorsoverabillingperiod, the net kilowatthours generated shall be valued at the same price per kilowatthour as the electric service provider would charge for the baseline quantity of electricity during that billing period, and if the number of kilowatthours generated exceeds the baseline quantity, the excess shall be valued at the same price per kilowatthour as the electric service provider would charge for electricity over the baseline quantity duringthatbillingperiod. (B) For all eligible customergenerators taking service under tariffs employingtimeofuserates,anynetmonthlyconsumptionofelectricity shallbecalculatedaccordingtothetermsofthecontractortarifftowhich thesamecustomerwouldbeassignedtoorbeeligibleforifthecustomer was not an eligible customergenerator. When those same customer generatorsarenetgeneratorsduringanydiscretetimeofuseperiod,the net kilowatthours produced shall be valued at the same price per kilowatthour as the electric service provider would charge for retail kilowatthour sales during that same time of use period. If the eligible customergeneratorstimeofuseelectricalmeterisunabletomeasurethe flowofelectricityintwodirections,paragraph(3)ofsubdivision(b)shall apply. (C) For all residential and small commercial customergenerators and for each billing period, the net balance of moneys owed to the electric serviceproviderfornetconsumptionofelectricityorcreditsowedtothe customergenerator for net generation of electricity shall be carried forwardasamonetaryvalueuntiltheendofeach12monthperiod.For all commercial, industrial, and agricultural customergenerators the net balance of moneys owed shall be paid in accordance with the electric service providers normal billing cycle, except that if the commercial, industrial,oragriculturalcustomergeneratorisanetelectricityproducer over a normal billing cycle, any excess kilowatthours generated during thebillingcycleshallbecarriedovertothefollowingbillingperiodasa monetary value, calculated according to the procedures set forth in this section,andappearasacreditonthecustomergeneratorsaccount,until theendoftheannualperiodwhenparagraph(3)shallapply. (3)Attheendofeach12monthperiod,wheretheelectricitygenerated by the eligible customergenerator during the 12month period exceeds theelectricitysupplied bytheelectricserviceproviderduringthatsame period, the eligible customergenerator is a net electricity producer and the electric service provider shall retain any excess kilowatthours generated during the prior 12month period. The eligible customer generator shall not be owed any compensation for those excess

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kilowatthours unless the electric service provider enters into a purchase agreement with the eligible customergenerator for those excess kilowatthours. (4)Theelectricserviceprovidershallprovideeveryeligibleresidential orsmallcommercialcustomergeneratorwithnetelectricityconsumption information with each regular bill. That information shall include the current monetary balance owed the electric service provider for net electricity consumed since the last 12month period ended. Notwithstanding this subdivision, an electric service provider shall permitthatcustomertopaymonthlyfornetenergyconsumed. (5) If an eligible residential or small commercial customergenerator terminates the customer relationship with the electric service provider, the electric service provider shall reconcile the eligible customer generatorsconsumptionandproductionofelectricityduringanypartof a 12month period following the last reconciliation, according to the requirementssetforthinthissubdivision,exceptthatthoserequirements shallapplyonlytothemonthssincethemostrecent12monthbill. (6)Ifanelectricserviceproviderprovidingnetmeteringtoaresidential or small commercial customergenerator ceases providing that electrical servicetothatcustomerduringany12monthperiod,andthecustomer generator enters into a new net metering contract or tariff with a new electric service provider, the 12month period, with respect to that new electric service provider, shall commence on the date on which the new electric service provider first supplies electric service to the customer generator. (i) Notwithstanding any other provisions of this section, the following provisions shall apply to an eligible customergenerator with a capacity ofmorethan10kilowatts,butnotexceedingonemegawatt,thatreceives electricalservicefromalocalpubliclyownedelectricutility,asdefinedin Section 9604, that has elected to utilize a coenergy metering program unlesstheelectricserviceproviderchoosestoprovideserviceforeligible customergenerators with a capacity of more than 10 kilowatts in accordancewithsubdivisions(g)and(h): (1)Theeligiblecustomergeneratorshallberequiredtoutilizeameter, or multiple meters, capable of separately measuring electricity flow in both directions. All meters shall provide timeofuse measurements of electricityflow,andthecustomershalltakeserviceonatimeofuserate schedule.Iftheexisting meter of the eligible customergenerator is not a timeofuse meter or is not capable of measuring total flow of energy in both directions, the eligiblecustomergeneratorshallberesponsibleforallexpensesinvolved inpurchasingandinstallingameterthatisbothtimeofuseandableto measure total electricity flow in both directions. This subdivision shall

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not restrict the ability of an eligible customergenerator to utilize any economic incentives provided by a government agency or the electric serviceprovidertoreduceitscostsforpurchasingandinstallingatime ofusemeter. (2) The consumption of electricity from the electric service provider shall result in a cost to the eligible customergenerator to be priced in accordance with the standard rate charged to the eligible customer generator in accordance with the rate structure to which the customer would be assigned if the customer did not use an eligible solar or wind electricalgeneratingfacility.Thegenerationofelectricityprovidedtothe electric service provider shall result in a credit to the eligible customer generator and shall be priced in accordance with the generation component, established under the applicable structure to which the customerwouldbeassignedifthecustomerdidnotuseaneligiblesolar orwindelectricalgeneratingfacility. (3) All costs and credits shall be shown on the eligible customer generators bill for each billing period. In any months in which the eligible customergenerator has been a net consumer of electricity calculated on the basis of value determined pursuant to paragraph (2), the customergenerator shall owe to the electric service provider the balance of electricity costs and credits during that billing period. In any billing period in which the eligible customergenerator has been a net producer of electricity calculated on the basis of value determined pursuant to paragraph (2), the electric service provider shall owe to the eligible customergenerator the balance of electricity costs and credits during that billing period. Any net credit to the eligible customer generatorofelectricitycostsmaybecarriedforwardtosubsequentbilling periods, provided that an electric service provider may choose to carry thecreditoverasakilowatthourcreditconsistentwiththeprovisionsof anyapplicabletariff,includinganydifferencesattributabletothetimeof generation of the electricity. At the end of each 12month period, the electric service provider may reduce any net credit due to the eligible customergeneratortozero. (j) A solar or wind turbine electrical generating system, or a hybrid system of both, used by an eligible customergenerator shall meet all applicablesafetyandperformancestandardsestablishedbytheNational ElectricalCode,theInstitute ofElectrical and Electronics Engineers, and accredited testing laboratories such as Underwriters Laboratories and, where applicable, rules of the Public Utilities Commission regarding safetyandreliability.Acustomergeneratorwhosesolarorwindturbine electrical generating system, or a hybrid system of both, meets those standards and rules shall not be required to install additional controls,

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perform or pay for additional tests, or purchase additional liability insurance. (k) If the commission determines that there are cost or revenue obligationsforanelectriccorporation,asdefinedinSection218,thatmay not be recovered from customergenerators acting pursuant to this section, those obligations shall remain within the customer class from which any shortfall occurred and may not be shifted to any other customer class. Netmetering and cometering customers shall not be exempt from the public benefits charge. In its report to the Legislature, thecommissionshallexaminedifferentmethodstoensurethatthepublic benefitschargeremainsanonbypassablecharge. (l) A net metering customer shall reimburse the Department of Water Resources for all charges that would otherwise be imposed on the customerbythecommissiontorecoverbondrelatedcostspursuanttoan agreement between the commission and the Department of Water Resources pursuant to Section 80110 of the Water Code, as well as the costsofthedepartmentequaltotheshareofthedepartmentsestimated net unavoidable power purchase contract costs attributable to the customer. The commission shall incorporate the determination into an existing proceeding before the commission, and shall ensure that the charges are nonbypassable. Until the commission has made a determination regarding the nonbypassable charges, net metering shall continueunderthesamerules,procedures,terms,andconditionsaswere applicableonDecember31,2002. (m) In implementing the requirements of subdivisions (k) and (l), a customergenerator shall not be required to replace its existing meter except as set forth in paragraph (3) of subdivision (b), nor shall the electricserviceproviderrequireadditionalmeasurementofusagebeyond thatwhichisnecessaryforcustomersinthesamerateclassastheeligible customergenerator. (n)OnorbeforeJanuary1,2005,thecommissionshallsubmitareport to the Governor and the Legislature that assesses the economic and environmentalcostsandbenefitsofnetmeteringtocustomergenerators, ratepayers, and utilities, including any beneficial and adverse effects on publicbenefitprogramsandspecialpurposesurcharges.Thereportshall be prepared by an independent party under contract with the commission. (o) It is the intent of the Legislature that the Treasurer incorporate net energymeteringandcoenergymeteringprojectsundertakenpursuantto this section as sustainable building methods or distributive energy technologiesforpurposesofevaluatinglowincomehousingprojects. SEC.7.Section2851isaddedtoChapter9ofPart2ofDivision1ofthe PublicUtilitiesCode,toread:

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2851. (a) In implementing the California Solar Initiative, the commissionshalldoallofthefollowing: (1) The commission shall authorize the award of monetary incentives for up to the first megawatt of alternating current generated by solar energy systems that meet the eligibility criteria established by the State EnergyResourcesConservationandDevelopmentCommissionpursuant to Chapter 8.8 (commencing with Section 25780) of Division 15 of the PublicResourcesCode.Thecommissionshalldeterminetheeligibilityof asolarenergysystem,asdefinedinSection25781ofthePublicResources Code, to receive monetary incentives until the time the State Energy Resources Conservation and Development Commission establishes eligibility criteria pursuant to Section 25782. Monetary incentives shall not be awardedforsolarenergysystemsthat do not meetthe eligibility criteria. The incentive level authorized by the commission shall decline eachyearfollowingimplementationoftheCaliforniaSolarInitiative,ata rateofnolessthananaverageof7percentperyear,andshallbezeroas ofDecember31,2016.Thecommissionshalladoptandpublishaschedule of declining incentive levels no less than 30 days in advance of the first declineinincentivelevels.Thecommissionmaydevelopincentivesbased upontheoutputofelectricityfromthesystem,providedthoseincentives are consistent with the declining incentive levels of this paragraph and theincentivesapplytoonlythefirstmegawattofelectricitygeneratedby thesystem. (2)Thecommissionshalladoptaperformancebasedincentiveprogram so that by January 1, 2008, 100 percent of incentives for solar energy systems of 100 kilowatts or greater and at least 50 percent of incentives for solar energy systems of 30 kilowatts or greater are earned based on theactualelectrical outputofthesolarenergy systems. Thecommission shallencourage,andmayrequire,performancebasedincentivesforsolar energy systems of less than 30 kilowatts. Performancebased incentives shalldeclineatarateofnolessthananaverageof7percentperyear.In developingtheperformancebasedincentives,thecommissionmay: (A) Apply performancebased incentives only to customer classes designatedbythecommission. (B) Design the performancebased incentives so that customers may receive a higher level of incentives than under incentives based on installedelectricalcapacity. (C) Develop financing options that help offset the installation costs of thesolarenergysystem,providedthatthisfinancingisultimatelyrepaid in full by the consumer or through the application of the performance basedrebates. (3) By January 1, 2008, the commission, in consultation with the State Energy Resources Conservation and Development Commission, shall

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require reasonable and costeffective energy efficiency improvements in existingbuildingsasaconditionofprovidingincentivesforeligiblesolar energy systems, with appropriate exemptions or limitations to accommodate the limited financial resources of lowincome residential housing. (4) Notwithstanding subdivision (g) of Section 2827, the commission shall require timevariant pricing for all ratepayers with a solar energy system. The commission shall develop a timevariant tariff that creates the maximum incentive for ratepayers to install solar energy systemsso that the systems peak electricity production coincides with Californias peak electricity demands and that assures that ratepayers receive due value for their contribution to thepurchase of solar energy systems and customerswithsolarenergysystemscontinuetohaveanincentivetouse electricity efficiently. In developing the timevariant tariff, the commission may exclude customers participating in the tariff from the ratecapforresidentialcustomersforexistingbaselinequantitiesorusage bythosecustomersofupto130percentofexistingbaselinequantities,as requiredbySection80110oftheWaterCode.Nothinginthisparagraph authorizesthecommissiontorequiretimevariantpricingforratepayers withoutasolarenergysystem. (b) Notwithstanding subdivision (a), in implementing the California Solar Initiative, the commission may authorize the award of monetary incentives for solar thermal and solar water heating devices, in a total amount up to one hundred million eight hundred thousand dollars ($100,800,000). (c) (1) In implementing the California Solar Initiative, the commission shallnotallocatemorethanfiftymilliondollars($50,000,000)toresearch, development, and demonstration that explores solar technologies and other distributed generation technologies that employ or could employ solarenergyforgenerationorstorageofelectricityortooffsetnaturalgas usage. Any program that allocates additional moneys to research, development, and demonstration shall be developed in collaboration withtheEnergyCommissiontoensurethereisnoduplicationofefforts, and adopted by the commission through a rulemaking or other appropriate public proceeding. Any grant awarded by the commission for research, development, and demonstration shall be approved by the full commission at a public meeting. This subdivision does not prohibit the commission from continuing to allocate moneys to research, development, and demonstration pursuant to the selfgeneration incentive program for distributed generation resources originally established pursuant to Chapter 329 of the Statutes of 2000, as modified pursuanttoSection379.6.

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(2) The Legislature finds and declares that a program that provides a stablesourceofmonetaryincentivesforeligiblesolarenergysystemswill encourage private investment sufficient to make solar technologies cost effective. (3)OnorbeforeJune30,2009,andbyJune30thofeveryyearthereafter, the commission shall submit to the Legislature an assessment of the success of the California Solar Initiative program. That assessment shall includethenumberofresidentialandcommercialsitesthathaveinstalled solar thermal devices for which an award was made pursuant to subdivision (b) and the dollar value of the award, the number of residentialandcommercialsitesthathaveinstalledsolarenergysystems, theelectricalgeneratingcapacityoftheinstalledsolarenergysystems,the cost of the program, total electrical system benefits, including the effect on electrical service rates, environmental benefits, how the program affects the operation and reliability of the electrical grid, how the program has affected peak demand for electricity, the progress made toward reaching the goals of the program, whether the program is on scheduletomeettheprogramgoals,andrecommendationsforimproving the program to meet its goals. If the commission allocates additional moneystoresearch,development,anddemonstrationthatexploressolar technologies and other distributed generation technologies pursuant to paragraph(1),thecommissionshallincludeintheassessmentsubmitted to the Legislature, a description of the program, a summary of each award made or project funded pursuant to the program, including the intendedpurposestobeachievedbytheparticularawardorproject,and theresultsofeachawardorproject. (d) (1) The commission shall not impose any charge upon the consumption ofnaturalgas,or upon naturalgas ratepayers, to fund the CaliforniaSolarInitiative. (2)Notwithstandinganyotherprovisionoflaw,anychargeimposedto fund the program adopted and implemented pursuant to this section shall be imposed upon all customers not participating in the California Alternate Rates for Energy (CARE) or family electric rate assistance (FERA) programs as provided in paragraph (2), including those residentialcustomerssubjecttotheratecaprequiredbySection80110of theWaterCodeforexistingbaselinequantitiesorusageupto130percent ofexistingbaselinequantitiesofelectricity. (3)Thecostsoftheprogramadoptedandimplementedpursuanttothis section may not be recovered from customers participating in the California Alternate Rates for Energy or CARE program established pursuant to Section 739.1, except to the extent that program costs are recovered out of the nonbypassable system benefits charge authorized pursuanttoSection399.8.

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(e)InimplementingtheCaliforniaSolarInitiative,thecommissionshall ensure that the total cost over the duration of the program does not exceed three billion three hundred fifty million eight hundred thousand dollars($3,350,800,000).ThefinancialcomponentsoftheCaliforniaSolar Initiativeshallconsistofthefollowing: (1) Programs under the supervision of the commission funded by charges collected from customers of San Diego Gas and Electric Company, Southern California Edison Company, and Pacific Gas and Electric Company. The total cost over the duration of these programs shallnotexceedtwobilliononehundredsixtysixmillioneighthundred thousanddollars($2,166,800,000)andincludesmoneyscollecteddirectly into a tracking account for support of the California Solar Initiative and moneys collected into other accounts that are use to further the goals of theCaliforniaSolarInitiative. (2) Programs adopted, implemented, and financed in the amount of seven hundred eightyfour million dollars ($784,000,000), by charges collected by local publicly owned electric utilities pursuant to Section 387.5. Nothing in this subdivision shall give the commission power and jurisdiction with respect to a local publicly owned electric utility or its customers. (3) Programs for the installation of solar energy systems on new construction, administered by the State Energy Resources Conservation and Development Commission pursuant to Chapter 8.6 (commencing with Section 25740) of Division 15 of the Public Resources Code, and fundedbynonbypassablechargesintheamountoffourhundredmillion dollars ($400,000,000), collected from customers of San Diego Gas and ElectricCompany,SouthernCaliforniaEdisonCompany,andPacificGas and Electric Company pursuant to Article 15 (commencing with Section 399). SEC. 8. The Contractors State License Board shall review and, if needed,reviseitslicensingclassificationsandexaminationstoensurethat contractors authorized to perform work on solar energy systems subject to Chapter 8.8 (commencing with Section 25780) of Division 15 of the Public Resources Code, have the requisite qualifications to perform the work. SEC.9.NoreimbursementisrequiredbythisactpursuanttoSection6 ofArticleXIIIBoftheCalifornia Constitutionbecause a local agency or school district has the authority to levy service charges, fees, or assessments sufficient to pay for the program or level of service mandated by this act, within the meaning of Section 17556 of the GovernmentCode.

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