Skinny at CEC [RE-wrenches]

Dean T. Newberry deant at dcn.org
Fri Dec 19 12:28:35 PST 2003


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Hi y'All in the Investor Owned Utility areas of Califronia.


CEC revises rebate rate for Emerging Renewables program

On December 17, the California Energy Commission approved a reduction in 
the Emerging Renewables Program's residential rebate to $3.20 per watt 
beginning January 1, 2004.

The rebate amount was scheduled to drop to $3.60 per watt as part of the 
program's 20-cent per watt reduction occurring every six months for 
systems less than 30kW. A record number of rebate applications submitted 
this year has depleted the Emerging Renewables Fund faster than 
expected, leading the CEC recently to consider cutting the rebate to 
$3.00 per watt to stretch the rebate funds further. However, renewable 
industry representatives led by the California Solar Energy Industry 
Association (CalSEIA) negotiated a compromise with state officials this 
week to obtain a revised rate of $3.20 per watt.

A new Emerging Renewables Program guidebook will be released in January. 
The CEC plans to reexamine the entire program in more detail early next 
year.

CCEnergy is working with CalSEIA to identify other sources of funding to 
ensure funding for the Emerging Renewables residential rebate program 
through the end of 2004. CalSEIA is also planning to push for 
legislation that would lock in financial and regulatory certainty for 
the solar energy industry (PV and thermal) for the next 10 years.
What this means for existing CCEnergy rebate reservations

The State spending freeze imposed by the Governor on Dec. 5 has added 
further uncertainty to the rebate program's status. Although the funds 
for these rebates are derived from utility surcharges and are not part 
of the State general fund subject to cuts, CEC staffing resources to 
process rebate applications are affected by the State budget crisis.

The situation is a bit confusing, but our understanding of pending 
rebate reservations is as follows:

    * Rebate reservations received before Dec. 5th (the date the 
spending freeze was imposed) will be processed by the CEC as normal and 
receive a rebate for completed solar system installations based upon the 
current $3.80 per watt rebate rate.

    * Rebate applications received by the CEC after Dec. 5 and 
postmarked before Dec. 31st will be accepted and assigned a tracking 
number, however, no further processing will occur until the spending 
freeze is lifted. Even if these applications are processed after Jan. 
1st, 2004 they will still be eligible to receive the $3.80/watt rebate rate.

The State spending freeze will be lifted when the Governor decides to do 
so, however the solar industry may successfully convince State officials 
that Emerging Renewables rebate funds do not come from the general fund 
and are therefore exempt from the freeze.

CCenergy is monitoring the rebate program's status closely and will 
provide updated information on our web site and through the CCEnergy 
mailing lists.

Dan Pellegrini
CCEnergy
(415) 457-0215


cul  deant

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