Cal. Code Regs. Tit. 20, § 2703 - Requirements for Solar Offset Program

(a) Solar Offset Program Participation. A seller of production homes who does not participate in the Homebuyer Solar Option Program shall participate in the Solar Offset Program by installing an offset solar energy system. The amount of electricity required to be generated by an offset solar energy system shall be equal to the amount of electricity generated by solar energy systems installed on a similarly sized project within the climate zone of the proposed subdivision to be offset, assuming 20 percent of prospective home buyers would have installed solar energy systems. To determine the number of homes to use for offset purposes:
(1) The seller shall assume that "20 percent of prospective homebuyers" of planned homes identified on the Tentative Subdivision Map "would have installed solar energy systems";
(2) If the Tentative Subdivision Map identifies less than 50 planned homes and the seller intends to file multiple Phased Final Maps, the number of homes identified on the Tentative Subdivision Map will be aggregated with the number of additional homes identified on any Phased Final Map(s);
(3) If the aggregate number of planned homes identified in the Tentative Subdivision Map and Phased Final Map(s) exceeds 50, then the number of additional homes identified on any subsequently filed Phased Final Map(s) will not be aggregated with the number of homes identified in the Tentative Subdivision Map or any previously filed Phased Final Map(s).
(b) Required TDV Energy Equivalency. The electricity equivalency shall be calculated using TDV energy. The required TDV Energy Equivalency for the proposed subdivision being offset shall be based on the assumption that a reference solar energy system would have been installed by prospective home buyers had the proposed subdivision participated in the homebuyer solar option program. The requirements for the reference solar energy system are described in Section 2703(d) of this article.
(c) Offset Solar Energy System. Offset solar energy systems shall meet the following requirements:
(1) Solar Energy System. Only solar energy systems composed of PV modules are eligible for the Solar Offset Program.
(2) Interconnection Date. Only solar energy systems interconnected to the utility grid on or after July 1, 2010, are eligible for the Solar Offset Program.
(3) Location. The offset solar energy system must be located within the same utility territory as the proposed subdivision being offset.
(4) Maximum Capacity. The maximum capacity (in kW AC) of an offset solar energy system shall not exceed 5 MW.
(5) Expected TDV Energy Calculation. The expected annual TDV energy of an offset solar energy system shall be calculated by the Solar Offset Program Calculator version 1.0, and shall be equal to or greater than the required TDV energy equivalency of the proposed subdivision being offset.
(6) Major Solar Energy System Components. All major solar energy system components shall be included on the Energy Commission's Eligible Equipment Lists. This includes PV modules, inverters, and meters.
(7) Field Verification. The offset solar energy system shall successfully complete third-party field verification using the protocol described in Appendix 2 of the Guidelines for California's Solar Electric Incentive Programs (Senate Bill 1) Third Edition, June 2010, Energy Commission Publication number CEC-300-2010-004-CMF, which is hereby incorporated by reference.
(8) Initial Reporting. Within 60 days of the adoption of these regulations, or interconnection of the offset solar energy system to the utility grid, whichever is later, the developer/seller shall provide the following information to the Energy Commission:
(A) Written proof from utility of interconnection of the offset solar energy system to the utility's grid;
(B) Date of interconnection;
(C) Expected TDV energy calculation, for the offset solar energy system, as calculated by the Solar Offset Program Calculator version 1.0; and
(D) An executed written agreement by the developer/seller and the system owner identifying a specific PV system to be used for the Solar Offset Program. This written agreement shall include:
1. Address location of the offset solar energy system;
2. Total dollar amount the developer/seller contributed towards the installation of the offset solar energy system;
3. Total installed cost of the offset solar energy system.
(E) The information reported to the Energy Commission may be made available to the public.
(9) Partial Funding of Offset Solar Energy System. If the developer/seller pays for less than the total cost of a PV system to be used as an offset solar energy system, the developer/seller shall only be eligible to claim a fraction of the total annual expected TDV energy of the PV system as an offset credit. In this circumstance, the fraction of the total annual expected TDV energy eligible to be claimed as an offset solar energy system shall be equal to the fraction of the total cost of the PV system paid by the developer/seller.
(10) Use of Offset Solar Energy System to Offset a Future Subdivision(s). An offset solar energy system may be used to offset multiple subdivisions, including, but not limited to, subdivisions at different locations, in accordance with Section 2703(e) of this article.
(d) Reference Solar Energy System. The reference solar energy system shall be based on the NSHP California Flexible Installation criteria which consists of the following:
(1) Capacity. Capacity shall be 2 kW AC.
(2) Installation Characteristics. The installation characteristics shall be based on the NSHP California Flexible Installation criteria which consist of the following:
(A) True azimuth of 170 degrees, assuming true north is zero degrees;
(B) Tilt of 22.6 degrees, equivalent to a 5:12 roof pitch;
(C) Mounting height from ground of 12 feet, equivalent to NSHP "One-Story";
(D) Fixed PV array; and
(E) Minimal shading.
(3) PV Modules. The reference solar energy system shall be composed of the most commonly used PV module in NSHP as of June 28, 2010.
(4) Inverter. The reference solar energy system shall be composed of the most commonly used inverter in NSHP as of June 28, 2010.
(5) Expected Annual TDV Energy Calculation. For each climate zone, the expected annual TDV energy of the reference solar energy system, as calculated by the Solar Offset System Program Calculator version 1.0, is shown in Table 2.
(A) Per-home TDV Energy Equivalency. The expected annual TDV energy in Table 2 represents the required TDV energy equivalency per home by climate zone in accordance with the Energy Commission climate zone map located at: www.energy.ca.gov/maps/building_climate_zones.html; and
(B) Developers shall multiply the number of homes they are intending to offset by the appropriate TDV energy value, depending on the climate zone in which the proposed subdivision is located. The resulting value is the required TDV energy equivalency for the proposed subdivision being offset as specified in Section 2703(b) of this article.

Table 2: Expected Annual TDV Energy of Reference Solar Energy System

Climate Zone

Expected Annual kWh

Expected Annual TDV Energy

CZ01

2927

43596

CZ02

3303

48686

CZ03

3735

52314

CZ04

3809

54135

CZ05

3887

54289

CZ06

3921

55388

CZ07

3837

61446

CZ08

3883

54577

CZ09

3723

52270

CZ10

3737

52572

CZ11

3802

56055

CZ12

3942

56627

CZ13

3987

53539

CZ14

4262

57345

CZ15

4164

55408

CZ16

3712

55960

Notes:

1. AC rating as calculated: 2.071760 kW, figures in table are scaled to 2 kW AC.
2. Calculations performed with Solar Offset Program Calculator version 1.0.
3. Calculated solar energy system composed of the most commonly used PV module and inverter in NSHP as of June 28, 2010.
4. TDV multipliers from the 2008 Building Energy Efficiency Standards for Residential and Nonresidential Buildings.
(e) Solar Offset Bank. The Energy Commission shall manage the Solar Offset Bank which allows participants in the solar offset program to aggregate their offset solar energy systems and apply those systems to multiple subdivisions, including, but not limited to, subdivisions at different locations.
(1) Eligibility. Any offset solar energy system that satisfies the requirements of Section 2703(b) of this article shall be eligible to be used in the Solar Offset Bank.
(2) Deposits Into the Solar Offset Bank. A developer/seller shall notify the Energy Commission in writing if they wish to enter an offset solar energy system into the Solar Offset Bank by reporting the following information:
(A) Name of Developer/Seller;
(B) Capacity of Offset Solar Energy System (in kW AC);
(C) Expected Annual TDV Energy from Offset Solar Energy System;
(D) City/Location of Offset Solar Energy System;
(E) Utility Territory of Offset Solar Energy System; and
(F) Interconnection Date of Offset Solar Energy System.
(3) Withdrawals From the Solar Offset Bank. A developer/seller shall report the following information to the Energy Commission when they wish to apply an offset to a proposed subdivision and make a withdrawal from the Solar Offset Bank:
(A) Legal description of the proposed subdivision(s) being offset, and, where applicable, legal description(s) of the portion(s) or phase(s) of the total area encompassed by a Tentative Subdivision Map(s) that is covered by any Phased Final Map(s);
(B) Date Offset System was Applied to Proposed Subdivision(s);
(C) Total number of homes in proposed subdivision(s), that are being offset; and, where applicable, the total number of planned homes identified on the portion(s) or phase(s) of the total area encompassed by a Tentative Subdivision Map(s) that is covered by any Phased Final Map(s);
(D) Number of Homes Being Offset (20% of Homes in the Proposed Subdivision); and,
(E) Climate Zone of Subdivision Being Offset.
(4) Calculating Balance. After each request from a developer/seller, the Energy Commission shall report the following information in writing to the developer/seller:
(A) Required TDV Energy Equivalency per Home for the Proposed Subdivision Being Offset;
(B) Required TDV Energy Equivalency for the Proposed Subdivision Being Offset; and
(C) Balance (Expected Annual TDV Energy).
(f) Annual Reporting. If there is a positive expected annual TDV energy balance for an offset solar energy system, the developer/seller shall report to the Energy Commission by May 1 of each year the kilowatt-hour generation of the offset solar energy system for the prior calendar year. Information reported to the Energy Commission may be made available to the public.

Notes

Cal. Code Regs. Tit. 20, § 2703
1. New section filed 3-24-2011; operative 3-24-2011 pursuant to Government Code section 11343.4 (Register 2011, No. 12).

Note: Authority cited: Sections 25213, 25218(e), 25218.5 and 25405.5, Public Resources Code. Reference: Section 25405.5, Public Resources Code.
1. New section filed 3-24-2011; operative 3-24-2011 pursuant to Government Code section 11343.4 (Register 2011, No. 12).

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