The Pilot Performance-Based Incentive Program (PBI) is now available for the installation of new solar photovoltaic (PV) systems. Compared to rebates available through the existing Emerging Renewables Program, incentives through this pilot program can provide greater economic benefits.

Incentive payments based on actual energy produced in kilowatt hours (kWh) by an eligible solar PV system will be provided through the PBI. The Energy Commission will evaluate overall program strategy and incentive level of the PBI, which began January 19, 2005, as a prospective long-term program option. The PBI is open to all customer types: residential, institutional, and commercial. However, commercial applicants are expected to benefit the most from tax benefits, including the federal 10% investment tax credit and accelerated depreciation.

The PBI Program offers a rebate level of $0.50 per kWh based on the energy production of the installed solar system. Quarterly performance payments are made over a three-year period. The initial reservation period is one year to install the PV system.

Program Details

• Applicants include all customer classes: residential, commercial, and institutional who meet the same eligibility requirements specified under the Emerging Renewables Program.


• Fully installed and operational grid-connected solar system required for payment


• Installation of revenue grade meters (selected from the Energy Commission's eligible equipment list)


• No system capacity limit


• $400,000 per project maximum


• $1,000,000 cap for systems installed by corporate or government parent


• Third party system performance data reporting either by applicant's utility or by web-based monitoring system. Note: Participants in PG&E territory may be able to utilize PG&E monitoring services. Please contact PG&E for information.


• Cannot be combined with other rebate or loan programs


• Total of $10 million available


• Current available funding

Evaluation Report

Application Process

For details on eligibility criteria and how to apply for the Pilot Performance-Based Incentive Program, the following publications are recommended reading:

1. Emerging Renewables Program Guidebook - Sixth Edition, Publication # CEC-300-2006-001-ED6F. January 2006 (PDF file, 75 pgs, 468 kb). Includes necessary forms and program guidelines.

Forms for Pilot Performance-Based Incentive Program
(These are also included in Guidebook above) (Updated January 31, 2006)
• CEC-1038-R7 (Preliminary Reservation Request Form) - 40 kb
• CA STD. 204 (Payee Data Record) - 172 kb
• CEC-1038-R10 (Invoice Form) - 36 kb


2. Decisions on Pilot Performance-Based Incentive Program Publication # CEC-300-2005-002-CMF. January 2005 (PDF file, 21 pgs, 100 kb).

For more information, please contact: