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COM/MP1/gd2 Date of Issuance 8/6/2012

Decision 12-08-008 August 2, 2012

BEFORE THE PUBLIC UTILITIES COMMISSION OF THE STATE OF CALIFORNIA

Order Instituting Rulemaking Regarding Policies, Procedures and Rules for the California Solar Initiative, the Self-Generation Incentive Program and Other Distributed Generation Issues.

Rulemaking 10-05-004

(Filed May 6, 2010)

DECISION MODIFYING DECISION 10-01-022 TO ADJUST INCENTIVE STRUCTURE IN THE CALIFORNIA SOLAR INITIATIVE THERMAL PROGRAM

1. Summary

In Decision (D.) 10-01-022 the Commission established the California Solar Initiative (CSI) Thermal Program and adopted incentive levels in four steps. This decision modifies D.10-01-022 to provide increased incentives in the early steps of the program to both natural gas and electric displacing Solar Water Heating (SWH) systems, while retaining the goal of replacing the equivalent of 200,000 natural gas-fired water heating systems with SWH systems. Most significantly, the Step 1 incentive level for single-family residential customers will be increased by 45% and the Step 1 incentive level for commercial and multifamily residential customers will be increased by 13.33%. The remaining steps have been adjusted so that the total therms and kilowatt hours displaced over the course of the program remain the same. This increase in the incentive payment amounts early in the CSI Thermal Program is designed to boost early participation in the program, thereby facilitating development of the SWH market.

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