Background and Procedural History

The California Solar Initiative (CSI), established by the Commission in collaboration with the California Energy Commission in D.06-01-024, D.06-08-028 and subsequent orders, provides rebates for the installation of qualifying solar energy systems for customers of Pacific Gas and Electric Company (PG&E), Southern California Edison Company (SCE), and San Diego Gas & Electric Company (SDG&E). Pub. Util. Code §  2852¹ requires that 10% of CSI funds, or $216.68 million, be used for incentives to low-income residential housing, as defined in that section.

In compliance with § 2852, the Commission issued D.07-11-045 to establish a Low-Income Single-Family (LISF) Program to provide rebates for installation of solar energy systems by low-income single-family homeowners. As part of its decision, the Commission expressed concern that third-party ownership arrangements of solar energy systems may not provide long-term benefits to low-income homeowners. Thus, the Commission concluded that the LISF program should not allow third-party ownership of solar energy systems, as occurs in the general market CSI program, until the Commission has more experience with and information about such arrangements. The Commission directed that the LISF Program manager may only pay LISF incentives to a qualifying low-income homeowner who is also the system owner and occupant of the home. (D.07-11-045, p. 39 and Conclusion of Law 17.)

On July 8, 2008, GRID Alternatives (GRID) filed a petition to modify D.07-11-045 to allow incentives payments to be made not only to homeowners, but also to third-parties who may have financed or installed the solar system. Comments in response to the petition were filed on August 7, 2008, by the California Center for Sustainable Energy (CCSE), the California Department of Community Services and Development (CSD), PG&E, and SCE. GRID responded on August 18, 2008. Following GRID's response, CSD requested permission to file an additional round of comments, contending that GRID's August 18 filing contained new information. In response to this request, the Administrative Law Judge (ALJ) allowed one final round of comments on September 8, 2008.

¹ All statutory references are to the Public Utilities Code, unless otherwise noted.