Preliminary Evaluation of Pilot Performance-Based Incentive Program

Publication Number:    CEC-300-2007-011

Abstract:
This report describes the history of the California Energy Commission's Pilot Performance-Based Incentive Program, including how the program has evolved since its start in January 2005. The Pilot Performance-Based Incentive program, developed under the Emerging Renewables Program, provides performance-based incentives to electricity customers of Pacific Gas and Electric, San Diego Gas & Electric, Southern California Edison, and Bear Valley Electric Service, who purchase and install eligible photovoltaic systems at their site and who elect to participate in the Pilot Performance-Based Incentive program. 

The incentive is calculated based on the generation output (performance) of the photovoltaic systems as opposed to traditional capacity-based incentive programs such as the California Public Utilities Commission's Self-Generation Incentive Program and the Emerging Renewables Program. The Performance-Based Incentive Program incentive is paid over a three-year period while both the Emerging Renewables Program and Self-Generation Incentive Program incentives are paid upfront. 

This report evaluates the Pilot Performance-Based Incentive program after one year through data gathered from program applications and from surveys conducted in June and July 2006. As a basis for comparison, staff also surveyed customers of the Self-Generation Incentive Program. The surveys reveal that tracking systems, which enhance system performance, are used relatively more frequently by Performance-Based Incentive respondents. Financing does not seem to be a challenge for Performance-Based Incentive respondents, despite having to pay the full upfront capital cost of the system. However, state incentives are still very important and are the primary motivation why respondents installed photovoltaic systems. Finally, both Performance-Based Incentive and Self-Generation Incentive Program respondents are, in general, very satisfied with their system performance. 

Keyword: Solar, photovoltaic, PV systems, performance-based, electric generation-based, capacity-based, incentive, rebate, PV installation, renewable technology system, renewable program, solar program, solar energy, PV generation, program evaluation, capacity factor, Emerging Renewables Program, renewable energy 

Author(s):  Lynette Green, B. Blackburn, R. Wiser, M. Bolinger

Commission Division:    Renewables Program (300)

Office/Program:    Rebates for Renewable Energy

PIER Program Area:   

Date Published:    September 2007

Date On Line:    09/17/2007

Acrobat PDF File Size: 58 pages, 720 kilobytes