Solar Energy & Net Metering Program
California Senate Bill 1 (SB 1) was passed by the State Legislature in August 2006 and signed into law by the Governor on August 21, 2006.
The legislation requires the governing body of a local publicly owned electric utilities like the City of Vernon (the “City”) to adopt, implement and finance a solar initiative program for the purpose of investing in and encouraging the increased installation of, residential and commercial solar energy systems by January 1, 2008.
A local publicly owned electric utility is required to offer monetary incentives for the installation of solar energy systems 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 kilowatt-hours, as determined by the governing board of a local publicly owned electric utility, for photovoltaic solar energy systems. The incentive level shall decline each year thereafter at a rate of no less than an average of 7 percent per year. Further, the legislation requires a local publicly owned electric utility to initiate a public proceeding to determine what additional funding, if any, is necessary to provide the incentives pursuant to the legislation. The statewide expenditure requirement for programs adopted and implemented by publicly owned electric utilities is seven hundred eighty-four million dollars ($784,000,000). Expenditure levels for each local publicly owned electric utility shall be based on the utility’s percentage of the total statewide load served by all local publicly owned electric utilities. Expenditures may be less than utility’s total cap amount, provided funding is adequate to provide required incentives. No money can be redirected from existing cost-effective energy efficiency, or demand response programs.
The City of Vernon Solar Energy and Net Metering Program is intended to encourage increased installation of residential and commercial solar energy systems. The program offers monetary incentives to eligible solar/photovoltaic projects. The incentive level will be two dollars and eighty cents ($2.80) per installed watt (AC) for the first year and will decline each year thereafter at a rate of 7 percent per year to zero by December 31, 2016. Annual incentives are as follows:
- 2008 - $2.80/Watt installed
- 2009 - $2.60/Watt installed
- 2010 - $2.42/Watt installed
- 2011 - $2.25/Watt installed
- 2012 - $2.09/Watt installed
- 2013 - $1.95/Watt installed
- 2014 - $1.81/Watt installed
- 2015 - $1.68/Watt installed
- 2016 - $1.57/Watt installed
- The solar energy systems receiving monetary incentives are intended primarily to offset part or all of the consumer’s own electricity demand. Installed system size must be less than or equal to the customer’s latest electricity demand.
- The maximum system size installed under this program is 1 Mega-watts.
- Solar/photovoltaic energy systems installed by the City’s residential and commercial electric customers after January 1, 2008 only are eligible to receive incentives under thisOnly customers with valid and active City customer accounts may participate.
- All components in the solar energy system must be new and unused, and have not previously been placed in service in any other location or for any other application
- Solar/photovoltaic energy systems that receive incentives must meet the requirements of the City’s guidelines for interconnection of customer owned generators.
- Solar/photovoltaic energy systems that receive incentives must be installed with power production meters to monitor and measure the system’s performance and the quantity of electricity generated by the system.
- The solar energy system must be located on the same premises of the end-use consumer where the consumer’s own electricity demand is located.
- The solar energy system must be connected to the City’s electrical distribution system.
- The solar energy system must be installed in conformance with the manufacturer’s specifications and in compliance with all applicable electrical and building code standards.
SPECIAL CONDITIONS / PROGRAM IMPLEMENTATION
- Customers electing to participate in the Program will be served pursuant to the terms and conditions of the City’s Net metering service schedule No. NM.
- Customers electing to participate in the program must submit a City Applications will be processed within 30 days.
- Incentive will be offered to eligible projects on a first-come first- served basis subject to funding availability.