bear valley solar initiative

8/9/2019 Bear Valley Solar Initiative

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Bear Valley Solar InitiativeProgram Handbook

FIRST EDITION

Powering the Mountain since 1929.


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Contents

1. Introduction: Bear Valley Solar Initiative Program (BVSI) .............................................................................. 2

1.1. Program Overview .............................................................................................................................................. 21.2. Program Targets, Incentive Levels and Budget .................................................................................................. 4

2. BVSI Rules and Requirements ........................................................................................................................ 4

2.1. Participant Classifications ................................................................................................................................... 5

2.1.1. Applicant ............................................................................................................................................... 5

2.1.2. Host Customer ....................................................................................................................................... 5

2.1.3. System Owner ....................................................................................................................................... 5

2.1.4. Contractor ............................................................................................................................................. 5

2.1.4.1. Suspended License Contractor ............................................................................................................ 6

2.1.5. General Eligibility Guidelines ................................................................................................................. 6

2.2 System Equipment Eligibility ................................................................................................................... 7

2.2.1. New Equipment, Not Pilot or Demonstration Systems ......................................................................... 7

2.2.2. Equipment Must Serve On-Site Electrical Load ..................................................................................... 7

2.2.3. System Size ............................................................................................................................................ 8

2.2.4. System Sizing Based on Future Load Growth ........................................................................................ 8

2.3. Energy-Efficiency (EE) Requirements ........................................................................................................... 8

2.4. Warranty Requirements ..................................................................................................................................... 9

2.4.1. Performance and Permanency Requirements ...................................................................................... 9

2.5. Metering and Monitoring Requirements ......................................................................................................... 10

2.6. Measurement and Evaluation Requirements .................................................................................................. 11

3. BVSI Incentive Structure .............................................................................................................................. 11

3.1. BVSI Incentive Trigger Mechanism ................................................................................................................... 11

3.2. Expected Performance Based Incentive (EPBI) ................................................................................................ 12

3.2.1. EPBI Calculator Modifications ............................................................................................................. 12

3.2.2. Rebate Limitations ............................................................................................................................... 12

3.2.2.1. Total Eligible Project Costs ................................................................................................................ 13

3.2.2.2. Reportable Project Costs ................................................................................................................... 14

3.2.3.3. Other Incentives or Rebates .............................................................................................................. 14

3.2.3.4. Right to Audit Final Project Costs ...................................................................................................... 143.2.3.5. Site and Host Customer Limitations .................................................................................................. 15

4. Application and Payment Processes ............................................................................................................ 15

4.1. Rebate Claim and Payment Processes ............................................................................................................. 16

4.1.1. Submit Rebate Claim Package ............................................................................................................. 16

4.2.Rebate Claim Package ...................................................................................................................................... 16


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4.2.2. Printout of EPBI Tool Calculation ........................................................................................................ 17

4.2.3. Performance Monitoring & Reporting System (PMRS) ....................................................................... 17

4.2.4. Copy of Executed Agreement of Solar Energy System Purchase and Installation or Copy of Executed

Alternative System Ownership Agreement (If System Owner is Different from Host Customer)................. 17

4.3. Circumstances Requiring Additional Documentation ...................................................................................... 19

4.3.1. Owner or Self-Installed System ........................................................................................................... 194.4.1 Rebate Check Payment and Terms ....................................................................................................... 19

5. Field Inspections .......................................................................................................................................... 20

5.1. Key Project Components Reviewed During Onsite Field Inspection ...................................................... 20

5.2. Acceptable Range of Parameters for Key Project Components Reviewed During Inspection ............... 21

5.3. Issuance of Infractions ............................................................................................................................ 22

5.4. Issuance of Failures ................................................................................................................................ 22

6. Notifications, Sanctions and Dispute Resolution ......................................................................................... 22

6.1. Grounds for Immediate Disqualification from the Program .................................................................. 236.2. Notifications and Sanctions .................................................................................................................... 24

7. Process for Removal from Program ............................................................................................................. 24

7.1. Removal from Program for Excessive Failures ....................................................................................... 24

7.2. Removal from Program for Immediate Disqualification ........................................................................ 24

7.3. Dispute Resolution ................................................................................................................................. 24

Technical Section ....................................................................................................................................... 25

8. Metering Requirements............................................................................................................................... 25

8.1. PMRS Service Requirement .............................................................................................................................. 25

8.1.1. Minimum Communication Requirements ........................................................................................... 25

8.1.2. Minimum PMRS requirements ............................................................................................................ 25

8.2. Minimum Metering Equipment Requirements ................................................................................................ 26

8.2.1. Meter Type .......................................................................................................................................... 26

8.2.2. Meter Measurement and Time Granularity of Acquired Data ............................................................ 26

8.2.3. Meter Display ...................................................................................................................................... 26

9. Equipment Certification, Rating Criteria & Design Factor Calculations ........................................................ 27

9.1.Equipment Certifications and Rating Criteria ................................................................................................... 27

Appendices .................................................................................................................................................... 28

Appendix A: Definitions ...................................................................................................................................... 28

Appendix B: Additional Requirements and Terms ............................................................................................... 35


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1.Introduction: Bear Valley Solar Initiative Program

(BVSI)

Bear Valley Electric Services(BVES) Solar Initiative Program (BVSI) provides

financial rebates for the installation of grid-interconnected eligible solar photovoltaic

(PV) systems. This Guidebook describes the requirements to receive incentives for

installations conducted within the BVES territory.

The goal of the Program is to contribute to the growth and sustainability of the

solar industry in California. BVESgoals include the addition of 800 kilowatts (kW)

of new PV generation capacity for residential customers in their service territory. In

addition to the renewable energy generation component, the Program leverages theeffectiveness of energy efficiency measures. Incentives will be available January 1,

2015 through December 31, 2022, or until the BVSI incentive budget has been fully

utilized, whichever comes first.

1.1. Program Overview

The BVSI is available to qualified existing residential homes for solar photovoltaic

systems. For all projects, energy efficiency, the expected performance of the

system, as well as the design and installation of the system, will determine the

incentive amount.1

Pursuant to the California Public Utilities Commission Decision D.14-11-002, the

BVSI will incorporate many elements of the California Solar Initiative (CSI)

program,2but will deviate in certain aspects to provide a cost effective program

suited to the characteristics of BVEScustomer base.

All systems will be paid an upfront rebate calculated by BVSIs Expected

Performance Based Incentive (EPBI) Calculator once the system is installed,

operational and has met all program requirements.

1Expected performance is the anticipated electrical generation over the life of the system and depends onequipment specifications including efficiency.2The California Solar Initiative program pays incentives to solar photovoltaic (PV) projects in the three CaliforniaIOU service territories: Pacific Gas & Electric, Southern CA Edison and San Diego Gas & Electric. The program wasauthorized by the California Public Utilities Commission (CPUC) and Senate Bill 1 (SB 1) with a goal to install 1,940MW of new solar generating capacity in California by 2016.


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To qualify for an incentive, both the building and the installed PV system must meet

the following program requirements included in this Guidebook:

The residence must receive retail electricity distribution service at the site of

installation from BVES.

The solar electric system must be at least 1kW CEC-AC and will be

incentivized up to 50kW CEC-AC.

The solar electric system must be interconnected to the utility distribution

grid and generate electricity to offset the end-use consumers on-site

electrical load.

The solar electric system must be located on the same premises of the end-

use consumer where the consumers own electrical demand is located.

The solar electric system must use new certified components that have not

been previously placed in service and are on the California Energy

Commissions list of eligible equipment3.

The solar electric system must include a 10-year warranty to protect against

defects and undue degradation of electrical output.

The solar electric system must be installed and verified as specified in this

Handbook.

Residential homes must be in existence or considered retrofit and not new

construction. The CEC separately administers the New Solar Homes

Partnership (NSHP) Program for residential new construction, with a separate

program handbook.

Existing residences must also attend to energy efficiency. The minimal

requirements include acknowledgement of energy efficiency cost savings, energy

efficiency audits provided by third parties and programs available through the

BVES.

3See: http://gosolarcalifornia.ca.gov


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1.2. Program Targets, Incentive Levels and Budget

Table 1: Adopted Incentive Structure, Capacity Allocations and Budget per Step4

Total BVSI Budget

StepsIncentive

Rate ($/watt)

Capacity

(kW)Incentive Budget

Administrative

BudgetTotal Budget

1 $1.60 155 $248,000 $105,000 $353,000

2 $1.30 180 $234,000 $70,000 $304,000

3 $1.09 215 $234,350 $80,000 $314,350

4 $0.94 250 $235,000 $80,000 $315,000

TOTALS 800 $951,350 $335,000 $1,286,350

Table 1 shows the kW targets by step. The incentive levels available through the

BVSI are divided into four steps. Each step is for a targeted amount of kW. The

incentive levels available reduce automatically over the duration of the program

based on the kW volume of solar reservations issued. Projects are counted toward

the kW goals once they are deemed eligible upon completion of the installation,

interconnection and approval of rebate claim documentation. The most current

status of applicable incentive levels available in the BVES territory will be available

on the BVSI website, www.BVES-Solar.com.

The total BVSI budget for eight years is $1,286,350 million. 26% of the budget is

earmarked for costs associated with administration of the program.

2.BVSI Rules and Requirements

Any residential retail electric distribution customer of Bear Valley Electric Service

(BVES) is eligible to install a solar energy system and receive incentives from the

BVSI. Eligible participants in the BVSI must be current electric distribution

customers of BVES at the project site where the system will be installed. Within the

nomenclature of the BVSI, the person who applies for an incentive is referred to as

the Applicant. Most often, but not always, the Applicant is either the Host

Customer or the installation Contractor. Other participants and designations

include System Owner, Third-Party Owner, Third-Party Lessor and Equipment

Seller.

4Pursuant to California Public Utilities Commission Decision (D.14-11-002)


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2.1. Participant Classifications

2.1.1. Applicant

The Applicant completes and submits the BVSI Rebate Claim and serves as the

main contact for the Program Administrator. Host Customers may act as the

Applicant or they may designate another party to act as the Applicant on their

behalf such as, but not limited to, engineering firms, solar contractor, equipment

distributors, energy service provider (ESP) and equipment Lessors.

2.1.2. Host Customer

The Host Customer is an individual or entity with 1) legal rights to occupy the site,

2) receives retail level electric service from Bear Valley Electric Service, 3) is the

utility customer of record at the site, 4) is connected to the electric grid, and 5) is

the recipient of the net electricity generated from the solar equipment. The HostCustomer alone will retain sole rights to the incentive and corresponding

incentive number. The Host Customer has the right to designate the Applicant,

energy services provider and/or Solar Contractor to act on their behalf.

2.1.3. System Owner

The System Owner is the owner of the generating equipment at the time the

incentive is paid. For example, when a vendor sells the solar generating equipment

and installation (generally defined as a turnkey system) to a Host Customer, the

Host Customer is also the System Owner. In the case of a third-party-ownedsystem (or leased system, for example), the third party (or Lessor) is the System

Owner.

The System Owner should be designated on the Rebate Claim. The Program

Administrator (PA)will require documentation substantiating equipment

ownership.

2.1.4. Contractor

Except for those systems that are self-installed, all systems must be installed by an

appropriately licensed California contractor in accordance with rules and regulations

adopted by the State of California Contractors State Licensing Board (CSLB). Solar

installation contractors must have an active A, B, C-10, or a C-46 license for

photovoltaic (PV) systems.

Systems must be installed in conformance with the manufacturers specifications

and with all applicable electrical and building codes & standards.


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The PA will verify that the Solar Contractor has an active license with the California

Contractors State Licensing Board (CSLB), in accordance with the above

requirement, during the application review process.

Self-installed systems are allowed to participate in the BVSI.

2.1.4.1. Suspended License Contractor

If it is determined that a contractors CSLB license is suspended when Rebate Claim

funds are requested, no incentive payment will be made. If the Contractor appeals

and submits a written explanation citing reasons for the suspension, the PA will

determine whether the project can be paid incentives or whether the project is

ineligible to be paid incentives. If the project is deemed to be payable, the PA, in

most cases, will only pay the Host Customer for the project.

2.1.5. General Eligibility Guidelines

The following Customer segments and associated Project sizes are generally used to

determine incentive types, application processes and Program eligibility:

Residential: All project sizes 1kW up to 50kW CEC-AC, retrofit only,

designated by a BVES Residential rate schedule.

The following are noteligible for incentives:

Customers who have entered into utility contracts for distributedgeneration (DG) services (e.g., DG installed as a distribution upgrade or

replacement deferral) and who are receiving payment for those services.This does not include third-party ownership arrangements, i.e., powerpurchase agreements, which are allowed.

Customers who have entered into agreements that entail the export andsale of electricity from the Host Customer Site. This does not include netenergy metering agreements, which are allowed.

Customers who have received a final interconnection authorization lettermore than 12 months prior to submitting the Rebate Claim for eligibilityconsideration.

Customers who have received gifted or donated systems, where theBVSI incentive exceeds the total amount paid by the Host Customer are

not eligible.


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2.2 System Equipment Eligibility

Solar PV systems (i.e., systems that cause direct conversion of sunlight to

electricity) are the only technology to receive incentives through BVSI5. Details of

the eligibility requirements for system equipment follow.

2.2.1. New Equipment, Not Pilot or Demonstration Systems

All major system components (panels and inverters) must not have been previously

placed in service in any other location or for any other application. Rebuilt,

refurbished, or relocated equipment is not eligible to receive incentives.

Components that are critical to PV systems must have at least one year of

documented commercial availability to be eligible for BVSI. Commercially available

means that the major solar energy system components are acquired through

conventional procurement channels, installed and operational at a Project Site.System component ratings must be certified by the California Energy Commission.

Ineligible equipment includes field demonstrations or equipment completely paid for

by research and development funds. Pilot and demonstration systems are ineligible

for BVSI.

2.2.2. Equipment Must Serve On-Site Electrical Load

For purposes of the BVSI the system must be sized so that the amount of electricity

produced by the system does not exceed the Host Customers electrical needs at

the Project Site.6System size evaluation will be based on the past 12 month

electricity usage of the Host Customer. If the Host Customer has not acquired at

least 12 months past usage at the residence, or in cases where historical load

cannot be determined due to extensive remodeling, the Load Justification Form

must be submitted for systems 5kW or greater. For systems without 12 month

historical data that are less than 5kW, on-site electrical load may be determined

using the calculation of 2 watts per square foot of the home. While systems 5 kW or

less are exempt from load justification for the purposes of the BVSI, BVES retains

the right to perform a system size analysis to ensure systems are not oversized.

In addition, to further support customer adoption of energy efficiency, the BVSI

incentive for a system greater than 5kW is capped at 90% of the Host Customers

5 Pursuant to California Public Utilities Commission Decision D.14-11-002. Non-PV systems, including solar hotwater systems are not eligible to participate in the BVSI6Section 2827(b)(4) of the California PU Code includes the statement that the system is intended primarily tooffset part or all of the customers own electrical requirements. Systems that are sized largerthan the customerselectrical requirements would not be eligible for BVES NEM.


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calculated energy consumption over 12 months at the Project Site7. For Sites

without a 12 month kWh usage history, the maximum incentive will be 90% of the

estimated annual usage.

2.2.3. System Size

The minimum system size eligible for an incentive is 1kW CEC-AC. The maximum

incentive provided for a Host Customer Site under the BVSI is 50 kW CEC-AC8;

however, a Host Customer Site may elect to install up to 1 MW per BVES Net

Energy Metering rules.

The CEC-AC system size is calculated by using the CEC-AC rating standards,9

including inverter DC-to-AC losses. To calculate the CEC-AC rating, the following

formula should be used:

CEC-AC Rating (kW) = Quantity of Photovoltaic Modules x CEC Rating of

Photovoltaic Modules x CEC Inverter Efficiency Rating/ 1000 (watts/kilowatt)

The BVSI rebate will incorporate the design factor, or system tilt, azimuth,

mounting method and shading into the overall system performance calculation. To

calculate the BVSI rating which will determine the BVSI incentive, the following

formula will be used:

BVSI Rating = CEC-AC system size rating x Design Factor

2.2.4. System Sizing Based on Future Load Growth

In the case of Host Customers with new or expanded sites with no electric bill

history or where the existing electric bill does not reflect the Customers expected

expanded consumption, the Applicant is required to submit a completed Load

Justification Form found on the BVSI website. Sites without a 12 month usage

history will receive a maximum incentive of 90% of the estimated annual usage.

2.3.

Energy-Efficiency (EE) Requirements

The Host Customer is required to complete, sign and submit to the PA the Rebate

Claim Form, which confirms the project details, rebate payee and authorizes the PA

to access Host Customer energy consumption data for review. The online

application will ask the applicant to list any EE measures completed before solar

implementation.

7Pursuant to California Public Utilities Commission Decision D.14-11-0028Pursuant to California Public Utilities Commission Decision D.14-11-0029 CEC- nce, 20Cambient temperature, and 1 meter/second wind speed. The CEC-AC watt rating is lower than the Standard TestConditions (STC), a watt rating used by manufacturers.


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2.4. Warranty Requirements

All solar energy systems that receive an incentive must have a warranty of no less

than 10 years to protect against defects and undue degradation of electrical

generation output.

All solar energy equipment for electricity generation (PV modules, inverters,

solar collectors, tracking mechanisms, heat exchangers, pumps, and heat

driven cooling systems) shall have a minimum 10-year manufacturer

performance warranty to protect against degradation of electrical generation

output of more than 15% from their originally rated electrical output.

All contractors shall provide a minimum 10-year warranty to provide for no-

cost repair and replacement of the system for any expenses not otherwise

covered by the manufacturer.

All contractors shall provide a minimum 10-year warranty to protect the

purchaser against more than a 15% degradation of electrical generation

output that may occur as a result of faulty installation.

For self-installed systems, the warranty need not cover the labor costs

associated with removing or replacing major components because any

repairs would be done by the self-installer or at the self-installers expense.

Meters must have a one-year warranty to ensure against defective

workmanship, system or component breakdown, or degradation in electrical

output of more than fifteen percent from their originally rated electrical

output during the warranty period. For meters that are integrated into the

inverter, the meter warranty period must be 10 years.

2.4.1. Performance and Permanency Requirements

Equipment installed under the BVSI is intended to be in place and interconnected to

the utility grid for the duration of its useful life. Only permanently installed systems

are eligible for incentives. Physical permanence is to be demonstrated in

accordance with industry practice for permanently installed equipment. Equipment

must be secured to a permanent surface. Any indication of portability, including but

not limited to temporary structures, quick disconnects, unsecured equipment,

wheels, carrying handles, dolly, trailer, or platform, will deem the system ineligible.


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The BVSI will allow the installation of approved hinge release technology if required

by local building and permitting agencies to maintain the integrity of the solar

system while also satisfying the program requirement of permanent installations.

In rare occasions, there may be extenuating circumstances that warrant equipment

relocation. System Owners who have received an EPBI and have relocated theirsystem must reinstall in BVES territory and orient their relocated equipment to

produce at least the same generation as their initial EPBI payment was based upon.

The BVSI may seek repayment of incentive funds from the Host Customer or

System Owner if the system is permanently removed from the BVES territory.

2.4.2. Interconnection Requirements

All solar electric generating systems receiving incentives under the BVSI must be

connected to the BVES distribution system. The system interconnection, operation

and metering requirements for solar energy systems shall be in accordance with

BVES utility rules for customer generating facility interconnections. To connect a

solar energy system to the utility distribution system, Host Customers, and/or

System Owners will be required to execute certain documents such as, but not

limited to, an Application for the Interconnection of a Small Solar Electrical

Generating Facility.

Proof of interconnection and parallel operation is required prior to receiving an

incentive payment. BVES will provide proof of interconnection to the PA. Incentive

payments will not be made until the PA confirms valid interconnection.

2.5 Metering and Monitoring Requirements

The Program requires accurate energy production meters for all projects that

receive incentives. Accurate measurement of solar energy output is of paramount

importance to ensure optimum value for both solar owners and ratepayers. All solar

systems are required to have a basic meter with an accuracy of 5 percent to

participate in BVSI program. Inverter integrated meters are acceptable.

For systems greater than 10kW, the Host Customer or System Owner must install a

Performance Monitoring and Reporting System to measure system generation10

in15 minute intervals. The Host Customer or System Owner will be responsible for

sending system production data to the Program Administrator on a biannual basis

for 1 year.

10See Section 8 for more details on PMRS.


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For systems 10kW and below PMRS is not required. BVES will install a meter

capable of measuring interval system generation on all projects and report

production data for a sample of 1 in 15 systems to the Program Administrator.

2.6. Measurement and Evaluation Requirements

To be eligible for incentives, all Applicants, Host Customers, and System Owners

must agree to comply with the terms and requirements of the measurement and

evaluation program. This includes providing access to the PA and/or third parties

contracted by the CPUC and/or PA access to the site and any available data and

information collected on the system.

The Host Customer and System Owner shall agree to allow all information provided

for the rebate to be entered into a database that will permit tracking of applications

for this and other incentive programs. Access to this database will be limited to

BVES, the PA and the California Public Utilities Commission; however, generalsystem equipment, cost information, and performance data may be publicly

reported for research and analysis purposes

3. BVSI Incentive Structure

BVSI provides an Expected Performance-Based Incentive (EPBI) using a specific

dollar per watt amount. The incentive amount for each solar energy system is

determined by analysis using the EPBI Calculator, and is paid when the solar

system has been installed, approved by the local building authority, interconnectedand all program requirements have been met.

3.1. BVSI Incentive Trigger Mechanism

The incentive payment levels will automatically be reduced over the duration of the

Program in 4 steps, based on the volume of kW incentivized. The duration of the

BVSI will be dependent on: (1) whether the incentive budget is depleted or (2) the

end date of the Program (December 2022), whichever comes first.

The PA will count a Projects BVSI size (CEC-AC multiplied by the design factor)

toward the step goals. Residential projects are counted toward the kW trigger once

they have been approved for payment. As the number of kW allocated through

installed systems reaches its maximum within any particular step, the Program will

move to the next step.


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The PA will provide updates to the BVSI website as close as possible to real time

and no less than weekly to indicate the total kWs available for incentives at each

step.

If during a step change, a project that is approved for payment is greater than the

kW amount remaining in the step, the project will receive a splitincentive. The

project will receive the rate for the kW remaining in the original step while the

balance of system kW will receive the lower step incentive rate.

3.2. Expected Performance Based Incentive (EPBI)

BVSI will pay incentives for all projects through an up-front incentive known as

EPBI. The EPBI is based on an estimate of the system's fully operational

performance. EPBI combines the benefits of rewarding productive performance with

the administrative simplicity of a one-time incentive paid at the time of project

completion.

The following formula determines the EPBI incentive:

EPBI Incentive Payment = Confirmed Incentive Rate x Final BVSI Eligible System

Capacity in watts.

3.2.1. EPBI Calculator Modifications

BVES has developed an EPBI calculator to help customers determine the incentive

amount. As it gains experience with the EPBI and the performance of the statewide

solar incentive programs, the PA reserves the right to modify the calculator at anytime without advance notice.

3.2.2. Rebate Limitations

If the Project is installed as described on the Rebate Claim package and all Program

terms and conditions are complied with, the PA will pay a rebate to the entity

designated as the incentive recipient (Payee). The PA reserves the right to modify

or cancel the rebate if the actual installation of the solar energy system differs from

the proposed installation, if the solar energy system fails inspection, and/or if the

documents submitted fail to meet the requirements of the Program Handbook.Rebate amounts and project eligibility for the BVSI are limited by a number of

factors, including:

Total eligible project costs

Other incentives or rebates received


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Project kW system size and Host Customer Site limitations

3.2.2.1. Total Eligible Project Costs

No Project can receive total incentives (incentives from the BVSI combined with

other programs) that exceed total eligible project costs. The Applicant must submitproject cost details to report total eligible project costs and to ensure that total

incentives do not exceed out-of-pocket expenses for the System Owner. Total

eligible project costs cover the solar energy system and its ancillary equipment.

Equipment and other costs outside of the project envelope as listed below are

considered ineligible project costs.

The following costs may be included in total eligible project cost:

1.

Solar equipment capital costs, including tracking systems and other ancillary

equipment associated with the solar energy system.

2.

Engineering and design costs for solar energy systems.

3. Construction and installation costs. For projects in which the generation

equipment is part of a larger project, only the construction and installation

costs directly associated with the installation of the energy generating

equipment are eligible.

4. Engineering feasibility study costs

5. Interconnection costs, if applicable, including:

a. Electric grid interconnection application fees

b.

Metering costs associated with interconnection

6.

Building permitting costs7. Warranty and/or maintenance contract costs associated with eligible project

cost equipment

8. Sales tax and use tax

9. On-site system measurement, monitoring and data acquisition equipment.

10.Customers may claim certain mounting surface costs as eligible project costs.

Costs may include mounting surfaces for the photovoltaic module/solar

collector and/or the materials that provide the primary support for the

modules. Only the percentage of mounting surface directly under the

photovoltaic module/solar collector is eligible.

11.Cost of capital included in the system price by the vendor, contractor orsubcontractor (the entity that sells the system) is eligible if paid by the

System Owner.

In cases in which an installation contract encompasses all costs associated with the

installation of a solar generating system and additional measures such as energy


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efficiency, other renewable generating technologies, etc., the contractor must

delineate the costs for each measure separately in the agreement.

3.2.2.2. Reportable Project Costs

All systems receiving an incentive are required to enter the costs identified below inthe Rebate Claim Form Package:

PV Module the cost for the number of modules installed

Inverter the cost for the number of inverters installed

Permitting Fees only include the cost of the permitting fees charged

by the permitting agency (do not include any costs associated with

time and labor in applying for permits)

Balance of System (BOS) all other eligible costs associated with the

installation of the PV System referenced in 3.2.2.1.

3.2.3.3. Other Incentives or Rebates

For projects that receive other incentives funded from other sources than utility

ratepayers (e.g., federal and state grants, air district grants or tax credits) no

adjustment is made to the BVSI incentive. The Host Customer and System Owner

understand that other program rebates, grants, forgiven loans, financial incentives,

post-installation agreements, Renewable Energy Credits (RECs or Green Credits),

and performance payments are other incentives and must be disclosed as soon as

those agreements or payments are made.

3.2.3.4. Right to Audit Final Project Costs

The PA reserves the right to conduct spot checks to verify that Project-related

payments were made as identified in the final invoices or agreements provided by

equipment sellers and/or Solar Contractors. As part of these spot checks, the PA

will require Applicants to submit copies of cancelled checks, credit card statements,

or equivalent documentation to substantiate payments made to the equipment

seller and/or Solar Contractor. The final amount legally incurred or paid to the

equipment seller and/or the final amount paid to the Solar Contractor for the

purchase and installation of the system must match the cost information identified

in the Rebate Claim package.

To meet this requirement, the System Owner must submit final invoices and/or a

copy of the final agreement, and cost documentation must provide sufficient

information to identify clearly the equipment purchased and the labor paid. If there

is no direct proof of actual payment from the System Owner to an appropriately


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licensed Solar Contractor or seller, the incentive will be cancelled or reduced.

Applicants must explain the difference if the final amount paid by the Applicant is

different from the amount of the purchase or installation shown in any agreement

or invoice.

In addition, the final invoices or agreements should clearly indicate the extent towhich the BVSI incentive lowered the cost of the system to the Host Customer. If

the System Owner has entered into an agreement to pay the equipment seller over

time rather than in lump sum, the final agreement must indicate the terms of

payment and the amount of any deposits or payments paid by Applicant to the

equipment seller to date. The System Owner must pay the cost of any system

installation prior to submitting a payment request to the PA.

3.2.3.5. Site and Host Customer Limitations

There are restrictions on the amount of rebate funding a Host Customer can

receive. Host Customers may only receive an incentive up to a maximum of 50 kW

CEC-AC from the Program for a single Site for the duration of the BVSI.

4.

Application and Payment Processes

To apply for an incentive, visit the BVSI website (www.BVES-Solar.com) to

complete the online rebate application. The supporting documents can be found on

the Apply Here page of the BVES-Solar.com website. Table 2 shows the basic

Rebate Claim package process steps and flow.


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Table 2

Basic Application Process Steps & Flow

4.1. Rebate Claim and Payment Processes

To apply for a BVSI rebate, Applicants must simply submit an online Rebate Claim

package.

4.1.1. Submit Rebate Claim Package

After the solar energy system is purchased, installed, and approved for operation

through the BVES Interconnection process, the Applicant should complete the

online Rebate Claim Package and submit the required supporting documentation.

The following section discusses each of the forms and documentation requirements

listed in subsection 4.2.2. Signatures are acceptable in the following formats for all

submitted documentation:

Original signed documents, or wet signatures

Scanned copies of original signed documents

Faxed copies of original signed documents

Verifiable E-signatures

4.2 Rebate Claim Package

4.2.1. Online Rebate Claim Application

To submit a Rebate Claim Application, please visit www.BVES-Solar.com. The

applicant will be required to complete all the required sections, which will include

the following:

PV System is

Interconnected

Applicant submitsonline BVSI Rebate

Claim PackagePA reviews Rebate

Claim Package

Incomplete Rebate

Claim Package

Suspension (14

days)

Applicant submits

corrections to PA

Host Customerreceives Rebate

Approval letter

PV system is

inspected (sample

1 in 12 )

Rebate payme

sent to Payee

PV System

Inspection Pass

PV System

Inspection Fail

Host Customer

approves change of

incentive


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Site Information Physical address location of the PV system

Applicant Information Individual or Company completing the application

Host Customer Information See Section 2.1.2 for Host Customer definition

System Owner Information See Section 2.1.3 for System Owner definition

Contractor Information See Section 2.1.4 for Contractor definition

Energy Efficiency Disclosure Information

System Information From the EPBI Calculator Printout

Project Cost Information

Document Submittal See Section 4.2.2 -4.2.5 for required documents

4.2.1. Complete Rebate Claim Form with Signatures

A completed Rebate Claim Form must be submitted. It must be read, completed,

initialed and signed by the Host Customer. If the Payee listed on the Rebate Claim

Form is different from the Host Customer, the contract should reflect the incentive

benefit to the Host Customer.

4.2.2. Printout of EPBI Tool Calculation

The EPBI tool calculates the systems expected energy output and rebate amount.

The EPBI tool calculator is found on the BVSI website www.BVES-Solar.com.

4.2.3. Performance Monitoring & Reporting System (PMRS)

For systems less than 10kW, PMRS is not required.

For systems 10kW and above, PMRS is required and the name of the PerformanceMonitoring and Reporting Service (PMRS) installed must be indicated on the Rebate

Claim package. See section 8 for more information on these requirements.

Eligible PMRS providers may be found on the GoSolar Californiawebsite.

4.2.4. Copy of Executed Agreement of Solar Energy System Purchase

and Installation or Copy of Executed Alternative System Ownership

Agreement (If System Owner is Different from Host Customer)

Applicants must submit a copy of their executed contract for purchase and

installation of the system. Agreements must be legally binding and clearly identify,

at a minimum, the scope of work, terms, price, solar energy system components to

be installed. Agreements must be signed by appropriate parties (supplier/Solar

Contractor, Host Customer, and/or System Owner).


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In the case of alternate System Ownership arrangements, the System Owner must

provide a copy of their agreement(s) to purchase and install the system on the Host

Customers site address.

Agreements for the purchase of a system or system equipment must be in writing

and must include, at a minimum, the following information:

The quantity, make and model number (as shown on the California

Energy Commission lists of eligible equipment) for the PV modules,

inverters, and system performance meters

The total purchase price of the system before applying the incentive

Language indicating the purchasers commitment to buy the system

Printed names and signatures of the purchaser and equipment sellers

authorized representative.

Installation contracts must comply with the Contractors State License Board (CSLB)requirements. Please refer to the CSLB website for more information on CSLB

guidelines at www.cslb.ca.gov.

Entities without a valid A, B, C-10 or C-46 contractors license may not offer

installation services or charge for installation in any agreement under the BVSI

Program.

In addition, installation contracts must contain the following information:

Name, address and contractors license number of the company

performing the system installation Site address for the system installation

Description of the work to be performed

Total agreed price to install the system

Payment terms (payment dates, dollar amounts and how the incentive

will be applied)

Printed names and signatures of the purchaser and the companys

authorized representative.

The above requirements are sufficient evidence of an agreement to purchase and

install a system for cases where a contractor sells and installs the system.

If the system is a self-installation, please submit a copy of the purchase order or

invoice for the modules and inverter(s). See section 4.3.1 for more information.


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4.3. Circumstances Requiring Additional Documentation

4.3.1. Owner or Self-Installed System

In situations where the Host Customer installs the Project, the Applicant must

provide the following information during the Rebate Claim process:

An equipment purchase agreement, or

In cases where there is not a signed agreement to purchase equipment the

purchaser may provide invoices or receipts showing the system equipment

purchase price (for modules, inverters, racking) has been paid to the

seller(s).11

The PA will verify interconnection prior to any incentive payment. Customers who

have not been interconnected prior to applying for a BVSI Incentive may have their

claims cancelled and will need to reapply.

The PA reserves the right to withhold incentive payment, pending review and

approval of the rebate claim documentation and field inspection results if that

Project is determined to require a field inspection.

4.4. Incomplete Rebate Claim Packages

If a Rebate Claim package is incomplete or is found to require clarification, the PA

will request the information necessary to process that claim further. Applicants

have 14 calendar days to respond to the requested clarification with the necessary

information.

If after 14 calendar days, the Applicant has not submitted the requested

information, the request for payment may be denied.

4.4.1 Rebate Check Payment and Terms

Upon final approval of the Rebate Claim package documentation and completed

field verification visit (if required), the PA will issue the EPBI payment. Payment will

be made to the Host Customer or a third party as indicated on the RebateClaim

Form, and will be mailed to the address provided.

11An example of this situation is when the purchaser buys new equipment online or by mail order.


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5. Field Inspections

A portion of BVSI projects are subject to onsite field inspections or may be

inspected at the PA's discretion. The PA or qualified third party inspector will

perform onsite field inspection for the first two Rebate Claim packages submitted byeach new Solar Contractor. After the completion of two successful field inspections,

each Contractor will have a minimum of one in twelve projects inspected in the

program overall, but the PA may inspect more projects from any particular

Applicant or Solar Contractor. The PA may determine whether to conduct an onsite

field inspection randomly and/or based on Applicant or Solar Contractors

participation in the Program. Parameters that may affect frequency or incidence of

onsite field inspection include: Solar Contractor being new to the program,

frequency of new applications in the program, and results of prior onsite field

inspections, or results of prior project reviews.

If neither the Applicant nor the Host Customer will be present during the inspection,

the inspector must obtain permission from the Host Customer to perform the

inspection.

5.1. Key Project Components Reviewed During Onsite Field Inspection

The inspectors will verify the system is installed in accordance with information

provided on the Rebate Claim documentation, and in compliance with handbook

rules.

The following are some examples of what will be inspected and verified:

Modules and Inverter(s)

Manufacturer

Model Number (if model nameplate is not visible, invoice may be required for

verification)

Quantity

Installation Parameters

Tilt Azimuth

Standoff Height

Shading of Array(s)


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The PA reserves the right to ask for a shading study from an Applicant. Shading

studies may be requested for projects that do not meet the minimal shading

requirements.

Operation

System is operational, and output is reasonable for conditions at the time of

the inspection

PMRS Meter or Metering Related Equipment

The metering equipment must meet the requirements as outlined in this

Handbook.

5.2. Acceptable Range of Parameters for Key Project Components

Reviewed During Inspection

The onsite field inspector will review and record key project components found at

the installation site. The PA will evaluate and compare the results of the inspection

to the Rebate Claim documentation.

The inspection results must fall within the following tolerances to pass inspection:

Tilt 3

Azimuth 5

Summer Shading (May-October) 5%

A new EPBI Calculator will be run and the project incentive modified accordingly if:

The onsite field inspection results are outside of the above tolerances,

or

The onsite field inspection reveals other discrepancies between key project

components and the project's Rebate Claim documentation.

All project incentives are subject to the results of the onsite field inspection.

The PA will notify the Applicant, Solar Contractor, System Owner, and Host

Customer if an onsite field inspection will result in a change in system size and/or

incentive amount.


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5.3. Issuance of Infractions

An infraction can be issued to the Applicant, Solar Contractor, System Owner,

and/or Host Customer for the following reasons but are not limited to:

The incentive amount submitted in the rebate claim documentation differs

from that of the onsite inspection incentive results between 5-10%

Neglecting to provide required documentation on a consistent basis, such as

Host Customer contact information

Neglecting to respond to requested information within the 14 day time period

on a consistent basis

5.4. Issuance of Failures

A failure can be issued to the Applicant, Solar Contractor, System Owner, and/or

Host Customer for the following reasons but are not limited to:

The incentive amount submitted in the rebate claim documentation differs

from that of the onsite inspection incentive results greater than 10%

3 Infractions as defined in section 5.3.

Re-inspections (due to contested result) found to have adjustments made to

match the original submission following the initial inspection

Re-inspections (due to contested result) found to have the same results as

the original inspection

System is found non-operational at the time of inspection due to equipment

failure Installation of PV modules and inverters not on the CECs list of eligible

equipment or otherwise ineligible for incentives

Failing to disclose the actual contractor performing work on Installation

Contract

6. Notifications, Sanctions and Dispute Resolution

Any Applicant, Solar Contractor, System Owner, Seller, and/or Host Customer that

receives two failures in a rolling 12-month period will be on probation for a periodtwelve months, during which time all of its projects will be inspected.


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For small volume contractors with less than 20 project sites12per rolling 12 month

period:

After being placed on probation, the entity will be removed from probation if no

additional failures occur within 12 months from the second failure. If a third failure

occurs before the end of the probationary period, the entity will be disqualified fromparticipating in the BVSI for a minimum of one year.

For large volume contractors with more than 20 project sites per rolling 12 month

period:

After being placed on probation, the entity will be removed from probation if no

additional failures occur within one calendar year from the third failure. If two

failures occur (the fourth and fifth) before the end of the 12 month probationary

period, the entity will be disqualified from participating in the BVSI for a minimum

of one year.

If the program issues an infraction or failure for a project that is later re-inspected

because the results are contested and the failure was due to inspector error, the

failure will be removed from the records.

6.1. Grounds for Immediate Disqualification from the Program

An Applicant, Solar Contractor, System Owner, Seller, and/or Host Customer may

be immediately disqualified from participating in the BVSI if any of the following

events occur:

A Solar Contractor that operates under a false CSLB license number or

another contractors CSLB license number

An Applicant fails to disclose another funding source that materially affects

the projects qualification for the incentive

The onsite field inspection results in an incentive amount that is 25% below

the original Rebate Claim Form rebate amount, or:

The Solar Contractor installs used or stolen PV modules and/or any other

system components

Forged paperwork

Providing any false information to the PA or any program participant

(Applicant, Solar Contractor, System Owner, Seller and/or Host Customer)

12Contractor volume adjusted from CSI to accommodate BVSI territory.


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6.2. Notifications and Sanctions

The PA will notify the Applicant, Solar Contractor, System Owner, Seller, and Host

Customer if the PA determines that an infraction or failure has occurred.

If a project results in the imposition of an infraction or failure on an Applicant, Solar

Contractor, System Owner, Seller and/or Host Customer, the PA will notify all of the

related entities on the project application of the reasons for the determination.

Once notified of an infraction or failure due to an onsite field inspection or the

application process review, the Applicant, Host Customer, or System Owner will

either accept the results or dispute the results through the dispute resolution.

7. Process for Removal from Program

7.1. Removal from Program for Excessive Failures

If it is determined that an Applicant, Solar Contractor, System Owner, Seller,

and/or Host Customer is immediately disqualified from participating in the program

because of more than the acceptable number of failures based on the companys

size then the PA will:

Notify all parties identified on the Rebate Claim(s) of the disqualification.

List the companys name on the BVSI website as a non-participating

contractor.

7.2. Removal from Program for Immediate Disqualification

If an Applicant, Solar Contractor, System Owner, Seller, and/or Host Customer is

immediately disqualified due to the reasons pursuant to Section 6.1, the following

will occur:

No incentive payment will be made to the entity that has been immediately

disqualified; and

All parties identified on the application or claim will be notified of their status.

7.3. Dispute Resolution

The Applicant, Solar Contractor, System Owner, Seller, and/or Host Customer may

appeal in writing to the PA regarding notification of sanction. To appeal the

notification, the disqualified entity must first contact the PA within 30 days to

discuss the issue. If the disqualified entity has new information to provide the PA,

then it must be provided to the PA within 30 days. If the disqualified entity and


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the PA cannot resolve the dispute, then the disqualified entity can file a complaint

using the California Public Utility Commission's (CPUCs) Formal Complaint process.

Information on the formal Complaint process is available through the Public

Advisor's Office at the CPUC or on CPUCs website.

TECHNICAL SECTION

8. Metering Requirements

This section contains detailed information on the minimum metering and monitoring

requirements for participation in the Program. These minimum metering

requirements were developed to increase owner knowledge of system performance,

foster adequate system maintenance, and thereby ensure ratepayer-funded

incentives result in expected levels of solar generation.

8.1. PMRS Service Requirement

A Performance Monitoring and Reporting System (PMRS) is required for all systems

10kW and larger. The Host Customer or System Owner is responsible for the choice

and installation of the metering hardware. The Host Customer or System Owner will

be responsible for submitting system production data to the Program Administrator

on a biannual basis for 1 year.

The list of eligible PMRS providers may be found on the GoSolar CA website.

For systems less than 10kW, no PMRS is required. However, BVES will install a

meter capable of measuring interval system generation on all projects and report

production data for a sample of 1 in 15 systems to the Program Administrator.

8.1.1. Minimum Communication Requirements

All PMRS systems must be installed with some form of communication capability

that will provide meaningful feedback to Host Customers. The systems should have

remote communicating capability whereby performance data can be collected, and

accessed remotely.

8.1.2. Minimum PMRS requirements

5 % meter

Data as collected and summarized by 15 minute, hour, day, month, and

year.


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Provide System Owner with on-demand access to all reports required by

Section 8.1.1

Notification service alerts to the System Owner indicating a non-functioning

or poorly functioning system

Capable of providing quarterly 15 minute interval kWh energy production

data

A PMRS on the California Energy Commission Eligible PMRS list

8.2. Minimum Metering Equipment Requirements

All systems must be installed with a meter or metering system which allows the

Host Customer to determine the amount of system energy production and allows

the System Owner to support proper system operation and maintenance.

The California Energy Commissions list of qualifying meters may be found on the

Go Solar CA website.

8.2.1. Meter Type

At minimum, 5 % meters are required for all systems. BVES will install a meter

capable of measuring interval system generation on all projects. BVES will bear the

cost of the performance meter and report production data for a sample of 1 in 15

systems to the Program Administrator. All systems 10kW and greater will receive

an output meter installed by BVES, but for these systems, the Host Customer or

System Owner will be responsible for reporting the data to the Program

Administrator biannually for one year.

8.2.2. Meter Measurement and Time Granularity of Acquired Data

Electric meters must measure the gross energy generated (kWh). The PMRS must

log all Required Solar Performance / Output Data points no less frequently than

once every 15 minutes.

8.2.3. Meter Display

All meters must provide a display showing the meters measured net generatedenergy output and measured instantaneous power. This display must be easy to

view and understand. This display must be physically located either on the meter,

inverter, web interface, or remote device.


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9. Equipment Certification, Rating Criteria & Design

Factor Calculations

9.1. Equipment Certifications and Rating Criteria

PV system components (modules, inverters, and system performance meters) must

be certified through the California Energy Commissions PV system certification

program. The CEC provides a list of currently certified eligible equipment on the

GoSolar California websiteor through its Call Center: (800) 555-7794.

The PA will confirm that equipment identified in the Rebate Claim Package meets

eligibility requirements prior to approving the Rebate Claim Package. Equipment is

periodically added and removed from the lists of eligible equipment, so Applicants

should confirm that the components purchased for a system are eligible prior to

installation. Equipment must be certified before any incentive payments will be

made.

Eligibility requirements for components are summarized below:

PV modules must be listed on the California Energy Commissions Eligible

Equipment List

Inverters must be listed on the California Energy Commissions Eligible

Equipment List

Meters:

o

Inverter Integrated: must be listed on the CECs Eligible Inverter List perSB1 Guidelines and indicate approved built-in meter is installed

o External meters must be listed on the CECsEligible Equipment List


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APPENDICES

Appendix A: Definitions

This section provides a list of definitions of key concepts used in this Programhandbook.

Alternating Current (AC):

Electric current that reverses direction, usually many times per second. Opposite of

direct current (DC). Most electrical generators produce alternating current. Under

the Program, PV electric output calculations must always be made using the CEC-

AC rating standards which include inverter DC to AC conversion losses.

Applicant:

The entity, either the Host Customer, System Owner, or third party designated bythe Host Customer, that is responsible for the completion and submittal of the

Rebate Claim Package and serves as the main point of contact for a specific Rebate

Claim Package.

Azimuth:

Azimuth is the horizontal angular distance between the vertical plane containing a

point in the sky and true south. All references to azimuth within the Program,

unless expressly stated otherwise, refer to true, not magnetic, azimuth. For

calculating an EPBI incentive, all proposed PV systems with a true azimuth

orientation between 180 degrees and 270 degrees, facing south, southwest and

west, will be compared to a reference system with the same orientation as the

proposed system.

Calendar Days:

All dates and schedules are measured in calendar days, which include all days of

the week.

California Energy Commission (CEC):

Californias primary energy policy and planning agency. Created in 1974 and

headquartered in Sacramento, the Commission has responsibility for activities that

include forecasting future energy needs, promoting energy efficiency throughappliance and building standards, and supporting renewable energy technologies.

On August 21, 2006, the Governor signed Senate Bill (SB 1) which directs the CPUC

and the CEC to implement the Program consistent with specific requirements and

budget limits set forth in the legislation.


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California Public Utilities Commission (CPUC or Commission):

The CPUC regulates a number of industries including the electric utility industry that

impact public well-being. Among other activities, the CPUC establishes service

standards and safety rules and authorizes rate changes. The CPUC, in conjunction

with Senate Bill 1 (SB 1), has authorized the California Solar Initiative (CSI). In

CPUC Decision (D.14-11-002), the California Public Utilities Commission (CPUC)

established the BVSI and established implementation details for the Program.

California Solar Initiative (CSI):

The California Solar Initiative program pays incentives to solar photovoltaic (PV)

projects in the three California IOU service territories. The program was authorized

by the California Public Utilities Commission (CPUC) and Senate Bill 1 (SB 1).

Responsibility for administration of the CSI Program is shared by Pacific Gas and

Electric Company, Southern California Edison Company, and the Center for

Sustainable Energy for San Diego Gas & Electric customers.

Capacity Factor:

The ratio of the electrical energy produced by the generating system during a

specific period, to the electrical energy the generating system could have produced

if it had operated at full capacity rating during the same period.

Capacity Rating:

The capacity rating is a load that a power generation unit, such as a photovoltaic

system, is rated by the manufacturer to be able to meet or supply. The PA will

verify system capacity rating to confirm the final incentive amount.

CEC-AC Rating:The PA will use the California Energy Commissions CEC-AC method to measure

nominal output power of photovoltaic cells or modules to determine the systems

rating in order to calculate the appropriate incentive level. The CEC-AC rating

standards are based upon 1,000 Watt/m2solar irradiance, 20 degree Celsius

ambient temperature, and 1 meter/second wind speed. The CEC-AC Watt rating is

lower than the Standard Test Conditions (STC).

Contractor:

A person or business entity who contracts to erect buildings, or portions of

buildings, or systems within buildings. Under the Program, all contractors must beappropriately licensed California contractors in accordance with rules and

regulations adopted by the State of California Contractors State Licensing Board.

The Solar Energy System Contractor is responsible for installing for the Host

Customer the photovoltaic system that will be eligible to receive Incentives. A

qualified Solar Contractor should be able to evaluate factors that will affect


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photovoltaic system performance, such as the orientation (tilt and direction) of the

system, wire length and size, shading, module output mismatch, inverter efficiency,

module cleanliness, and other factors.

Contractors State License Board (CSLB):

Installation contracts for photovoltaic systems installed under the Program mustcomply with the Contractors State License Board (CSLB) requirements. Please refer

to the CSLB websitefor more information on CSLB guidelines.

Design Factor:

The Design Factor is a ratio comparing a proposed systems expected generation

output with that of a baseline system. The Design Factor is used in calculating the

EPBI incentive (it is multiplied by the system rating and the incentive rate to

determine EPBI incentives). A Design Factor is also used by PA to allocate kW

towards the capacity targets in each step.

Direct Current (DC):

Direct current (DC or "continuous current") is the continuous flow of electricity

through a conductor such as a wire from high to low potential. In direct current, the

electric charges flow always in the same direction, which distinguishes it from

alternating current (AC). Under the Program, photovoltaic electric output

calculations must always be made using the CEC-AC rating standards which include

inverter DC to AC conversion losses.

Electric Utility:

The Host Customers local electric transmission and distribution service provider for

their Site. In the BVSI, the electric utility is the Bear Valley Electric Service.

Electrical Distribution Grid:

A network of power stations transmission circuits, and substations conducting

electricity. Under the Program, eligible renewable energy systems must be

permanently interconnected and operating parallel to the electrical distribution grid

of the utility serving the customers electrical load.

Energy Service Provider (ESP):

An entity that provides electric power and ancillary services (including but not

limited to aggregators, brokers, and marketers, but excluding utilities) to an end

use customer. Also referred to as an Electric Service Provider.

Expected Performance Based Incentive (EPBI):

The EPBI incentive methodology pays an up-front incentive to participants of BVSI.

EPBI incentives combine the performance benefits of PBI with the administrative

simplicity of a one-time incentive paid at the time of project installation. The EPBI


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Incentive will be calculated by multiplying the incentive rate by the system rating

by the Design Factor.

Host Customer:

The Host Customer is an individual or entity with 1) legal rights to occupy the site,

2) receives retail level electric service from Bear Valley Electric Service, 3) is theutility customer of record at the site, 4) is connected to the electric grid, and 5) is

the recipient of the net electricity generated from the solar equipment. The Host

Customer alone will retain sole rights to the incentive and corresponding incentive

number. The Host Customer has the right to designate the Applicant, energy

services provider and/or Solar Contractor to act on their behalf.

Interconnection Agreement:

A legal document authorizing the flow of electricity between the facilities of two

electric systems. Under the BVSI, eligible renewable energy systems must be

permanently interconnected and operating in parallel to the electrical distribution

grid of the utility serving the customers electrical load. Portable systems are not

eligible. Proof of interconnection and parallel operation will be verified by the PA

prior to receiving an incentive payment.

Interval Data Recorder (IDR):

IDR is a metering device capable of recording minimum data required. Minimum

data requirements include (a) hourly data required for the Direct Access settlement

process; and (b) data required to bill the utilitys distribution tariffs including 15-

minute demand data--also referred to as Hourly Metering.

Inverter:An electric conversion device that converts direct current (DC) electricity into

alternating current (AC) electricity.

Inverter Efficiency:

The AC power output of the inverter divided by the DC power input.

Kilowatt (kW):

A unit of electrical power equal to 1,000 watts, which constitutes the basic unit of

electrical demand. The watt is a metric measurement of power (not energy) and is

the rate (not the duration over which) electricity is used. 1,000 kW is equal to 1

megawatt (MW). Throughout this Program Handbook, the use of kW refers to the

CEC-AC wattage ratings of kW alternating current inverter output.

Kilowatt Hour (kWh):

The use of 1,000 watts of electricity for one full hour. Unlike kW, kWh is a measure


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of energy, not power, and is the unit on which the price of electrical energy is

based. Electricity rates are most commonly expressed in cents per kilowatt hour.

Lessor:

A person or entity who rents property to another under a lease. Under the Program,

in the case of a third-party owned system (or leased system, for example), thelessor is classified as the System Owner.

Load:

Either the device or appliance which consumes electric power, or the amount of

electric power drawn at a specific time from an electrical system, or the total power

drawn from the system. Peak load is the amount of power drawn at the time of

highest demand.

Measurement and Evaluation (M&E):

A process or protocol to evaluate the performance of an energy system. As a

condition of receiving incentive payments under the Program, System Owners and

Host Customers agree to participate in Measurement and Evaluation (M&E)

activities as required by the CPUC. M&E activities will be performed by the PA or the

PAs independent third-party consultant and include but are not limited to, periodic

telephone interviews, on-site visits, development of a M&E Monitoring Plan, access

for installation of metering equipment, collection and transfer of data from installed

system monitoring equipment, whether installed by Host Customer, System Owner,

a third party, or the PA.

Meter:

A device used to measure and record the amount of electricity used or generatedby a consumer. The Program requires accurate solar production meters for all solar

projects that receive incentives.

Metering System:

A metering system should include all distinct components necessary to measure the

energy produced by a solar generating system. This must include equipment that

allows the system to monitor and record 15-minute interval data either internally or

externally through additional equipment such as a data logger. The system must

include a 5% accurate meter either socket based or panel style allowing for a

visual or remote display.

Minimal Shading:

No Solar obstruction is closer than a distance twice the height it extends above the

PV Modules. The measurements shall be made at all the major corners of the array

with no adjacent measurement being more than 40 feet apart. The points of

measurement shall be distributed evenly between two major corners if they are


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more than 40 feet apart such that the linear distance between any sequential points

is no more than 40 feet.

Modules:

Under the Program, a module is the smallest complete environmentally protected

assembly of interconnected photovoltaic cells. Modules are typically rated between50 and 400 W.

Net Energy Metering (NEM) Agreement:

An agreement with the local utility which allows customers to reduce their electric

bill by exchanging surplus electricity generated by certain renewable energy

systems such as PV systems. Under net metering, the electric meter runs

backwards as the customer-generator feeds extra electricity back to the utility. The

Program permits net energy metering agreements.

New Construction:

A building is considered new construction if theentire building structure is subject

to current Title 24 building efficiency standards and does not yet have a Certificate

of Occupancy from the relevant Building Department.

Photovoltaic (PV):

A technology that uses a semiconductor to convert light directly into electricity.

Power Purchase Agreements (PPA):

An agreement for the sale of electricity from one party to another, where the

electricity is generated and consumed on the Host Customer Site. Agreements that

entail the export and sale of electricity from the Host Customer Site do not

constitute on-site use of the generated electricity and therefore are ineligible for the

BVSI.

Program Administrator (PA):

For purposes of the BVSI, Center for Sustainable Energy is the PA.

Program Year (PY):

January 1 through December 31

Project:

For purposes of the BVSI, the Project is the installation and operation of the

proposed eligible PV system, as described by the Rebate Claim.

Residential:

Residential entities are private household establishments that consume energy

primarily for space heating, water heating, air conditioning, lighting, refrigeration,

cooking, and clothes drying. The classification of an individual consumer's account,


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where the use is both residential and commercial, is based on principal use. A

power purchase agreement on a residence is considered a residential application. It

should be noted that the Incentive rate will be determined by the utility rate

schedule of the Host Customer (may require more than one application). If the

requested incentive rate differs from the classification of the Host Customer utility

rate schedule, the PA may, at its discretion, allow the requested incentive rate

given that the Host Customer change its utility rate schedule.

Retrofit:

A retrofit is a modification of an existing building or facility to include new systems

or components.

Seller:

Any person or business entity that transfers property or property rights by sale in

commerce.

Senate Bill 1 (SB 1):

Chapter 132, Statutes of 2006 (SB1, Murray) establishes the goals of installing

3,000 MW of solar generation capacity in the state of California, establishing a self-

sufficient solar industry, and placing photovoltaic systems on 50 percent of new

California homes within 13 years. The bill was signed into law on August 21, 2006,

and it became effective on January 1, 2007.

Site:

For BVSI program purposes, site refers to theservice address for the account

number and meter number listed on the Rebate Claim Package.

System Owner:

The owner of the PV system at the time the incentive is paid. For example, in the

case when a vendor sells a turnkey system to a Host Customer, the Host Customer

is the System Owner. In the case of a leased system, the lessor is the System

Owner.

System Size:

There are three different system sizes, DC, CEC-AC, and BVSI-AC.

The DC system size is based off of the nameplate rating of the solar panelsmultiplied by the number of solar panels in the array(s).

The CEC-AC system size will take into account the CEC rated efficiency of the

solar panels and inverter(s).

The BVSI-AC system size will take into account the CEC rated efficiency of

the solar panels and inverter(s), along with the design factor (azimuth, tilt,


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mounting method, and shading of the solar electric system). The Incentive is

based on the BVSI-AC system size.

Time of Use (TOU) Rates:

Electricity prices that vary depending on the time periods in which the energy is

consumed. In a time-of-use rate structure, higher prices are charged during utilitypeak-load times. Such rates can provide an incentive for consumers to curb power

use during peak time.

Warranty:

A promise, either written or implied, that the material and workmanship of a

product are without defect or will meet a specified level of performance over a

specified period of time. In the BVSI, inverters and modules must each carry a 10

year warranty, and meters a one-year warranty. Meters that are integrated in the

inverter must carry a 10-year warranty. The warranty may be provided in

combination by the manufacturer and Solar Contractor.

For BVSI purposes, Contractors must provide a 10-year warranty to provide for no-

cost repair and replacement of the system for any expenses not otherwise covered

by the manufacturer.

Appendix B: Additional Requirements and Terms

In addition to the Program eligibility criteria and requirements described above in

the Handbook, the following additional items are required of BVSI participants.

No Endorsement by Program Administrator

The Host Customer and System Owner understand that the PAs review of the

Project and authorization for BVSI funding shall not be construed as confirming or

endorsing the qualifications of the Applicant or any person(s) involved with the

Project, including but not limited to the Project Solar Contractor(s), designer(s), or

manufacturer(s); endorsing the Project design; or as warranting the economic

value, safety, durability or reliability of the Project. The Host Customer is solely

responsible for the Project, including selection of any designer(s), manufacturer(s),

contractor(s), or Solar Contractor(s). The Host Customer and System Ownerunderstand that they, and any third parties involved with the Project, are

independent contractors and are not authorized to make any representations on

behalf of the Program Administrator (PA). The Host Customer and System Owner

shall not use the BVES or PAs corporate name, trademark, trade name, logo,


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identity, or affiliation for any reason, without prior written consent of the BVES or

PA.

Dispute Resolution

The parties to the BVSI Program shall attempt in good faith to resolve any dispute

arising out of or relating to it promptly by negotiations between PA and the System

Owner and/or Host Customer. Either party must give the other party or parties

written notice of any dispute. Within 30 calendar days after delivery of the notice,

the appointed representatives shall meet at a mutually acceptable time and place,

and shall attempt to resolve the dispute. If the matter has not been resolved within

30 calendar days of the first meeting, any party may pursue other remedies,

including mediation. All negotiations and any mediation conducted pursuant to this

clause are confidential and shall be treated as compromise and settlementnegotiations, to which Section 1152.5 of the California Evidence Code shall apply,

and Section 1152.5 is incorporated herein by reference.

Limitation of Liability

The PA shall not be liable to the System Owner, Host Customer or to any of their

respective contractors or subcontractors for any special, incidental, indirect or

consequential damages whatsoever, including, without limitation, loss of profits or

commitments, whether in contact, warranty, indemnity, tort (including negligence),

strict liability or otherwise arising for the PAs performance or nonperformance of its

obligations under the BVSI Program.

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