III. One MW Size Limit

SB 1 adds Section 2851(a)(1) to the Public Utilities Code⁴ and states that:

The commission shall authorize the award of monetary incentives for up to the first megawatt of alternating current generated by solar energy systems that meet the eligibility criteria established by the State Energy Resources Conservation and Development Commission pursuant to Chapter 8.8 (commencing with Section 25780) of Division 15 of the Public Resources Code.

In D.06-01-024, the Commission allowed qualifying solar projects to receive CSI incentives for up to five MW, an increase from the previous one MW limit in the Self-Generation Incentive Program (SGIP). (D.06-01-024, p. 14.) The language of SB 1 limits incentives to one MW projects. Parties agreed that the language of SB 1 reduced this MW limit for new solar incentive applications under the CSI. Thus, D.06-01-024 should be modified to clarify that although solar projects may be sized up to five MW, an individual project may receive incentives only up to the first MW.⁵ This one MW limitation will commence with applications for solar incentives after January 1, 2007. The one MW cap does not apply to projects that received prior incentives under the SGIP or the CEC's Emerging Renewables Program. Prior incentive recipients may apply for up to one MW in incentives through CSI, as long as the application pertains to a new project.

⁴ Code sections modified or added by SB 1 will not appear in the statutes until their effective date of January 1, 2007. The citations from SB 1 in this order refer to the code sections where the language will be found once effective.

⁵ System size for program eligibility should be based on CEC-AC ratings.