In this post, we’re reviewing the solar incentives offered by the municipal utilities of Vernon, Azusa, Pasadena, Glendale and Burbank. Check out Part One of our LA coverage for details of SCE and LADWP solar rebates and for a review of terms.
In order to participate in most rebate programs, the process is usually as follows: find a solar installer, work together to determine the size of the system you’ll need, fill out the forms necessary to reserve rebate funds, install the solar system, apply for the required permits (your installer will often do this part for you) and obtain approval from utility inspectors. Only then will you receive a check in the mail or a credit in your bank account. Unless otherwise specified, only solar photovoltaic systems are accepted for these programs, and the incentive amount you collect will be the rebate rate multiplied by the number of watts of your proposed solar energy system.
Vernon Light & Power
Residential and commercial customers of the City utility have access to its Solar Energy & Net Metering Program, which offers a rebate rate that declines by 7 percent each year until 2016, or whenever the City is able to generate 2.5 percent of its peak demand from solar. For 2010, a solar photovoltaic installation will be able to fetch $2.42/watt of installed capacity. While no documents about Vernon’s solar incentive are currently available on their website, you can directly contact them for further information. The solar permitting fee is $687 as of July 2009.
Azusa Light & Water
Azusa Light & Water’s Solar Partnership Program offers an impressive solar rebate of $4/watt for residential and commercial customers alike, under the stipulation that the utility gets to keep the Renewable Energy Credits (RECs) attributed to the subsidized system. Should the customer choose to retain ownership of the RECs, this incentive will drop to $2.80/watt and subject to decline over a series of steps, until it reaches $0/watt by 2016. As attractive as the $4/watt incentive is, however, the incentive payment cannot exceed 50 percent of the installed system cost. The solar permitting fee is $1,197—not the highest number found in Los Angeles County, but certainly nothing to scoff at.
Should you retain ownership of your RECs?
RECs represent the “green value” of the electricity produced by your solar panels. Currently, California utilities are not allowed to use the RECs from small (distributed generation) solar installations to count towards state-mandated Renewable Portfolio Standard solar capacity goals. So right now, the RECs attached to your small solar installation have low value. But California may be changing its policy in the near future–as soon as March 2010, in fact, and the value of small-solar RECs may increase dramatically as a result. Discuss your options thoroughly with an experienced solar installer before deciding which choice is best for you.
Note that recipients of CSI rebates through California’s investor-owned utilities do retain ownership of their RECs.
Pasadena Water & Power
All PW&P customers are eligible for the Pasadena Solar Initiative, which offers a variety of rebates depending on the size and nature of your project. EPBB rates for projects 1-50 kw are $3.15/watt for residential installations, $2.00/watt for commercial and PPA-financed projects, and $2.60/watt for government and non-profit projects. An EPBB, as we covered in Part One, is your typical one-time, up-front rebate.
PBI rates apply to solar installations 50 kW to 1 MW in installed capacity and are: $0.476/kWh for residential, $0.302/kWh for commercial and PPA and $0.393/kWh for government and non-profit. This is doled out in five annual payments for the first five years after the project goes live. Rates may decline at any time. Still, PW&P appears to be looking out for its solar customers by reimbursing solar permitting fees, which are $198 in Pasadena and $88 in South Pasadena.
Glendale Water & Power
The Glendale Water & Power Solar Solutions Program is open to all GW&P customers for residential as well as non-residential solar energy installations, offering rebate rates that kicked off at $3.02/watt for EPBB and $0.360/kWh for PBI in 2009 but which have declined since then. The incentives decrease on a yearly basis rather than by step, as for the CSI and LADWP. The incentives for 2010 are as follows:
- EPBB (<30 kw): $3.02/watt with RECs, $3.72/watt without RECs
- PBI (>30 kW): $0.335/kWh with RECs, $0.424/kWh without RECs
The GW&P rebate will cover up to 50 percent of a system’s total costs. However, the lack of solar permitting fees in Glendale is a bonus to which few other cities in Los Angeles County can lay claim (Burbank, below, is another exception).
Burbank Water & Power
All current Burbank Water & Power customers are entitled to opt into the Solar Support Program, which offers rebates for solar electric systems 1 kW to 1 MW in size. The incentives are separated into three levels of rates:
- Tier 1: customer keeps RECs; rebate can cover up to 50 percent of costs
- Tier 2: utility keeps RECs; rebate can cover up to 50 percent of costs
- Tier 3: for non-profits, schools, and affordable housing; rebate can cover up to 75 percent of costs
As BWP’s rebate rates decline by the incentive step rather than by the year, the rebate rate is liable to decrease at any time. The Solar Support Program is currently at Step 1, with 250 kW of capacity remaining.
