About the Program
Southern California Edison (SCE) now offers incentive rebates for electric-displacing solar water heating (SWH) systems in its service territory.
The California Solar Initiative (CSI) Thermal Program—approved by the California Public Utilities Commission (CPUC) on January 21, 2010—provides rebates to residential, multi-family and commecial customers who install eligible solar water heating (SWH) systems in their homes or businesses.
In addition, any customer that previously installed an electric-displacing SWH system, that met program requirements and obtained a final building permit signed off by the appropriate governmental agency after July 15, 2009, is eligible to apply for a CSI Thermal Program incentive rebate. New construction projects, however, are not eligible to receive an incentive rebate under the electric-displacing portion of the CSI Thermal Program, but may be eligible under the California Energy Commission’s New Solar Homes Partnership Program.
The CSI Thermal Program incentive rebates are intended to encourage high-performing SWH systems, so incentive rebates differ according to the customer’s system size, class (i.e. residential, commercial, or multi-family), and fuel source (i.e., gas or electric).
Incentive rebates for gas-displacing SWH systems within SCE’s service territory are administered by Southern California Gas Company (SoCalGas).
Background
Assembly Bill (AB) 1470, signed into law by the Governor on Oct. 12, 2007, authorized the gas-displacing SWH Program, and Senate Bill (SB) 1, signed into law on Aug. 21, 2006, authorized the electric-displacing SWH Program. To be eligible for incentive rebates, customers must heat their water with gas or electricity provided by Pacific Gas and Electric Company (PG&E), San Diego Gas & Electric (SDG&E), SCE, or SoCalGas.
The CSI Thermal Program is being administered by PG&E, SCE, SoCalGas, and the California Center for Sustainable Energy in SDG&E’s service territory.
Program Goals
The goals of the CSI Thermal Program are to:
- Significantly increase the size of the SWH market in California by increasing the adoption rate of SWH technologies, including:
- Achieving the installation of elecric-displacing SWH systems that displace 275.7 million kilowatt hours (kWh) per year of electricity by the end of 2017,
- Achieving the installation of natural gas-displacing systems that displace 585 million therms, and,
- Achieving an expansion of the market for other solar thermal technologies that displace natural gas and electricity use in addition to SWH.
- Support reductions in the cost of SWH systems by at least 16% through a program that increases market size and encourages cost reductions through market efficiency and innovation.
- Increase consumer confidence and understanding of SWH technology and its benefits.
- Engage in market facilitation activities to reduce market barriers to SWH adoption, such as high permitting costs, lack of access to information and lack of trained installers.

