Incentives
The NSHP offers several types of incentives: (1) Base Incentive, which is for conventional or market-rate housing; (2) Standard Incentive, which is for production housing with solar as a standard feature; and (3) a higher incentive for qualified affordable housing projects.
The incentive amount is determined by the expected performance of the solar system, which is impacted by key factors such as equipment efficiency, location, orientation, shading, design and installation of the system. The incentive is paid once the system is installed, operational and has met all program requirements.
Base Incentive (18-month reservation):
- The Expected Performance-Based Incentive (EPBI) amount is based on the reference system receiving $2.50/Watt at the initial step.
- The base incentive applies to:
- Custom homes;
- Small developments;
- Other developments in which solar is identified as an option;
- Production housing where solar will not be installed as “solar as standard” feature, as defined below; and,
- Common areas of residential developments.
Standard Incentive (36-month reservation):
- The EPBI amount is based on the reference system receiving $2.60/Watt at the initial step.
- To qualify, builders must commit at the reservation stage that a minimum of 50 percent of the homes/dwelling units in the subdivision or multi-family housing development where a minimum of six homes/dwelling units will have solar systems that meet or exceed the California Flexible Installation criteria.
- The actual incentive amount for a particular system and installation depends on the EPBI calculation of the system’s expected performance compared to the reference system.
- Incentive levels will decline when a specific cumulative MW volume of reservations (in terms of total program capacity) has been reached.
| Base Incentive (per watt, reference system) | Qualifying Residential Units With Solar as a Standard Feature Incentive* (per watt, reference system) | Reserved Volume (MW-AC) |
|---|---|---|
| $2.50 | $2.60 | 15 |
| $2.25 | $2.35 | 18 |
| $2.00 | $2.10 | 22 |
| $1.75 | $1.85 | 25 |
| $1.50 | $1.60 | 30 |
| $1.25 | $1.35. | 35 |
| $1.00 | $1.10 | 40 |
| $0.75 | $0.85 | 50 |
| $0.50 | $0.60 | 75 |
| $0.25 | $0.35 | 90 |
| Total | 400 |
The actual incentive amount for a particular system and installation depends on the EPBI calculation of the system's expected performance compared to the reference system. Incentive levels will decline when a specific cumulative MW volume of reservations (in terms of total program capacity) has been reached, as reflected by the table above.
| Residential Dwelling Unit System Incentive (per watt, reference system) | Common Area System Incentive (per watt, reference system) | Reserved Volume (MW-AC) |
|---|---|---|
| $3.50 | $3.30 | 1.5 |
| $3.15 | $2.97 | 1.8 |
| $2.80 | $2.64 | 2.2 |
| $2.45 | $2.31 | 2.5 |
| $2.10 | $1.98 | 3.0 |
| $1.75 | $1.65 | 3.0 |
| $1.40 | $1.32 | 4.0 |
| $1.05 | $0.99 | 5.0 |
| $0.70 | $0.66 | 6.0 |
| $0.35 | $0.33 | 7.0 |
| Total | 36 |
The table above reflects a declining incentive level as specific MW capacity has been reserved. For example, at the beginning of the program, incentives will be offered at $3.50/$3.30/watt for dwelling unit/common area systems, respectively, until 1.5 MW of capacity has been reserved. At that point, incentives offered will be lowered to $3.15/$2.97/watt until an additional 1.8 MW has been reserved
