How to calculate solar rebates 

The Golden State has always been a front-runner when it comes to solar energy. California is consistently ranked as the top state for solar when it comes to both jobs and installed capacity. Much of their original growth in solar has been due to the California Solar Initiative (CSI). Enacted in 2006, CSI was designed to provide upfront rebates for residential and commercial property owners purchasing solar panel systems. The rebates were available for customers of three utility companies: Pacific Gas and Electric (PG&E), Southern California Edison (SCE), and San Diego Gas and Electric (SDG&E).
 

Stimulating the growth for renewable energy 

This initiative is a part of California’s larger “Go Solar California” campaign, and had an initial goal to reach approximately 1,940 megawatts (MW) of new solar generation capacity from 2007 until 2016. Because of its success, the majority of the money available for the rebates was quickly used up and hasn’t been available to many utility customers for years. But, that doesn’t mean CSI is dead. In an effort further, stimulate the growth of solar in within the state, the California Public Utilities Commission (CPUC) decided to allocate no less than 10 percent of CSI’s funds to programs committed to providing solar electric systems to low-income households. 
 

Calculating solar rebates

It’s worth noting that the rebate calculation is based on the California Energy Commission’s alternating current (CEC-AC) rating of the system, not the direct current (DC) rating as with many rebates available in other solar markets. The CEC-AC ratings take into account the performance of the system and the equipment in its true conditions. It gives a realistic rating to the output of your solar panel system, rather than its overall capacity to produce power in a testing scenario (such as with the DC rating). The CEC-AC rating of your system will depend on a number of factors, including the equipment, how many panels you install, tilt and azimuth of the array, and any shading that may be on your roof. As an example, let’s say you’re considering installing a 3 kW system (which is the average system size installed in the SASH program). If you install on a due-south roof with minimal shading, standard efficiency equipment at a 30-degree tilt in southern California, your solar panel system will have a CEC-AC rating of roughly 2.6 kW. At $3 a watt for 2,600 watts, this would mean an upfront rebate of $7,800. The average cost of the 3 kW ranges from $8,837 to $11,527 before tax credits and other incentives. If you were on the lower end of that range, your solar panel system would cost roughly $1,037 before other available incentives.

Keep in mind that a CEC-AC rating of 2.6 kW does not mean you should expect only 2,600 kilowatt-hours (kWh) of solar production annually. In fact, a 3 kW system in southern California with a CEC-AC rating of 2.6 kW will produce roughly 5,000 kWh a year. Learn more about how production estimates are calculated, or try out the Go Solar California calculator to get an estimate of the CEC-AC rating for your proposed solar panel system. 

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