CSI Funding Requirements And Allocation

The CSI budget will begin with a simple fund allocation, divided equally between residential (under 10kW) and commercial (over 10kW) projects. We anticipate the Joint Agencies will make program adjustments as necessary to manage funding demand by sector. We estimate CSI total program costs between $1.1 billion and $1.8 billion.

Total program funding is dependent on a number of variables that can change over a ten-year period. While we assume momentum for solar projects will continue once long-term funding is assured, no incentive program can attempt to eliminate all risks to the solar industry, nor guarantee that the industry will be self-sustaining at the end of the program. Our estimates account for known and expected conditions and attempt to forecast the amount of funding that would be required to achieve the proposed 3,000 MW goal, while phasing out incentives in a manner that result in the most efficient use of ratepayer funds.

By necessity, a larger number of systems will be installed in the program's later years. This approach provides a steady and somewhat predictable growth rate to allow equipment manufacturers to expand capacity and enter into long-term contracts for raw materials and supply of product. It also allows installers, retailers, and system integrators to grow their businesses over the years with minimal funding gaps.