In keeping with other statewide initiatives to move to smart meters and more customer-controlled energy programs, the California Public Utilities Commission (CPUC) Thursday unanimously increased the size limits for self-generation solar systems to 100% of historic annual use for the previous 12 months. Currently the limit is 100% of historic peak-demand use.

With the California Solar Initiative (CSI) adopted early this year by the CPUC, the state is gearing up for a ten-year gold rush-like push of solar installations by homeowners, residential multi-family building owners and businesses. For both the Self-Generation Incentive Program and the CSI, the limit on the size of the installation will be the historic 12-month usage statistics at the time the customer applies.

The new system sizing requirements will apply to all 2006 self-generation incentive applicants as well as future applicants for both the self-generation and CSI programs, the CPUC said in its order. The action by the state regulators adopts their CPUC staff’s proposal.

The commission’s order noted that the goal of both the self-generation and solar programs is to”facilitate the installation of large amounts of on-peak electricity generation from distributed generation facilities,” and it should avoid inadvertently restricting the size of the systems, so that the programs end up having to subsidize twice as many projects to meet the state’s ambitious megawatt goals (3,000 MW over the next 10 years).

Initially, the CPUC wanted to avoid paying incentives to over-sized systems, so it was decided that it was not prudent to pay incentives for capacity exceeding on-site peak load. More recently it was argued successfully that this penalized 2006 self-generation incentive applicants by reducing net energy metering credits on an annual basis. On reflection, the CPUC changed its mind.

Solar industry and other proponents convinced the regulatory staff that allowing customers greater flexibility to size their systems larger than 100% of peak load was critical for the upcoming CSI program to meet its megawatt targets, which constitute the most ambitious solar program in the nation.

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