VIII. Financing for CSI Projects

ASPv/PV Now urge the Commission to consider a financing program for qualifying solar technologies as part of the CSI program. They comment that existing financial institutions are reluctant to finance solar projects. They also believe a financing option combined with a utility "in-bill" payment may be even more effective at attracting investors than higher incentives, and that financing options may be essential if the Commission adopts a PBI program because of the extended payment stream.

We are interested in exploring the issue of a financing program further. If, as ASPv/PV Now suggest, financing programs would be more effective than higher incentives in motivating solar investments, we may be able to promote more installations at a lower cost.

We will direct our staff to work with the CEC staff on this matter in a workshop to take place in 2006. Some of the related issues we hope to explore include:

1. Should the Commission provide a solar financing program? If so, how should it be administered?

2. Should financing be available to all types of installations and customers or only those that can demonstrate need?

3. How should the financing program be designed? What interest rates are reasonable? What types of standards should apply for borrower creditworthiness?

4. Should repayment of loans be included as part of utility bills as an option?