Note that the terms and conditions of leases or power purchase agreements may vary among the providers of these financial arrangements. Customers should become familiar with the terms and conditions of the agreements and ask questions if something is not clear. Any understanding you reach should be made in writing.

It is typical that the leasing or PPA company will retain ownership of the tax credits, depreciation value, rebates (if available), and environmental attributes of the solar system.

Remember to check the contractors’ license for all companies offering to perform work on your home: www.cslb.ca.gov.

Consumer Disclosure Requirements Affecting Solar Leases and Power Purchase Agreements

The Consumer Leasing Act  requires meaningful and accurate disclosures of costs and terms to consumers so they may compare proposals to lease or finance personal property for their household use.  The State of California does not have its own Consumer Leasing Act , but California Public Utilities Code 2869 specifies consumer disclosures regarding solar leases and power purchase agreements (PPAs).

Federal Consumer Leasing Act and Regulation M

Regulation M, issued by the Board of Governors of the Federal Reserve System, implements the Consumer Leasing Act (Act).  The Act and Regulation M apply to consumer (residential) leases if the leasing period is longer than four months and the lessee’s total contractual obligation (defined below) does not exceed $25,000, regardless of whether the lessee has the option of purchasing the personal property at the end of the lease term.  
The total contractual obligation is not based on the value of the leased property.  Instead, it is the sum of all lease payments plus all nonrefundable amounts the contract obligates the lessee to pay to the lessor.  Residual value amounts, purchase-option prices, and amounts collected by the lessor but paid to a third party (such as taxes) are not included in the calculation.

On July 21, 2011, the dollar amount specified as the exemption threshold from the Consumer Leasing Act increases from $25,000 to $50,000.   In addition, the exemption threshold will increase annually based on increases in the Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W).  For example, if the CPI-W increases by $1,000 (as reported every June 1) the exemption threshold would increase by $1,000 on January 1 of the next year.

The Act and Regulation M do not apply to power purchase agreements or leases with non-residential customers (such as, agricultural, commercial, governmental, or industrial lessees).  They also do not apply to credit sales, in which the consumer will own the leased property at the end of the contract term after paying a nominal sum.

Regulation M Disclosure Requirements

When Regulation M applies, companies are required disclose all of the terms and costs of the deal they are offering.   Before signing a lease, the consumer must be given a written, dated statement disclosing what they would pay or may have to pay.   Customers must also be told about any upfront money they have to pay, such as a first monthly payment, a refundable security deposit, a last-month’s payment, a capitalized cost reduction (like a down payment), freight or destination charges, or state or local taxes.

Lessors must also inform their customers about how many lease payments would be made, how much each payment would be, when the payments would be due (including grace periods), and whether penalties would be imposed for late payment or default.  The written statement must show the total costs (that is, what the upfront, closeout, and during-the-lease-term payments would add up to).  The Consumer Leasing Act also limits the amount of “balloon” payments  owed by the customer at the end of the lease.

The leasing company must also disclose other requirements, such as whether the consumer must take out a certain type or amount of insurance. If the personal property has a warranty, the leasing company must inform the consumer what the warranty covers and for how long.  In addition, the consumer must be told who is responsible for providing warranty service.

At the end of the lease, the customer may have the option of returning the used equipment to the lessor or purchasing it.  Before signing the lease agreement, the customer must be told whether and how the leasing company will assess wear and tear and whether the customer might have to pay extra for excessive wear and tear.  (Wear-and-tear standards must be “reasonable.”). There is no provision specifying which party pays for building repairs when equipment is removed.

If the customer has a lease that allows the used property to be purchased at the end of the contract, the leasing company must provide in writing under what circumstances the customer may buy the property and what the cost will be.  “Lessors must disclose the purchase-option price as a sum certain or as a sum certain to be determined at a future date by reference to a readily available independent source. The reference should provide sufficient information so that the lessee will be able to determine the actual price when the option becomes available. Statements of a purchase price as the “negotiated price” or the “fair market value” do not comply with [Regulation M’s disclosure] requirements.”   Leasing companies must disclose whether they will charge an additional purchase-option fee to cover their costs of selling the leased equipment to the original lessee.

State-Required Disclosures from Independent Solar Energy Producers

Sections 2868 and 2869 of the Public Utilities Code mandate specific disclosures to residential customers, who lease solar equipment or purchase electricity from independent solar energy providers.  The law applies to all solar leasing companies, regardless of the lease term or total cost of the lease. It also applies to solar energy companies installing equipment on residential property through power purchase agreements (PPAs).  The following is a list of the required disclosures:

• Good faith estimates of the kilowatt-hours (kWh) to be delivered by the solar energy system and the price per kWh of that delivered solar electricity.
• “Plain language” explanations of:

1. Terms under which the pricing would be calculated over the life of the contract,
2. Operation and maintenance responsibilities of the contract parties,
3. Contract provisions regulating disposition or transfer of the contract if ownership in the residence transfers,
4. Costs or potential costs associated with the disposition or transfer of the contract, and
5. Disposition of the solar energy system at the end of the contract term.

The California Public Utilities Commission (CPUC) may require independent solar energy producers to disclose other information to consumers or to the CPUC, itself, as a condition of receiving ratepayer-funded incentives. In addition, the CPUC can compel companies to provide copies of “all contracts for the sale of electricity … for use in a residential dwelling…” 

This State law also requires independent solar energy producers to disclose existence of the residential lease or PPA to the County Recorder. Specifically, a “Notice of an Independent Solar Energy Producer Contract” must be filed within 30 days of signing the agreement against the title of the real property on which the electricity is generated and against the title of any adjacent real property on which the electricity will be used.  At a minimum, the filed notice must state:

 “This real property is receiving part of its electric service from an independent solar energy producer that has retained ownership of a solar electric generation system that is located on the real property. The independent solar energy producer provides electric service to the current owner of this real property through a long-term contract for electric service.

The independent solar energy producer is required to provide a copy of the contract to a prospective buyer of the real property within ten (10) days of the receipt of a written request from the current owner of this real property.”

If the solar energy system is located on adjacent property, the notice must state instead:

“This real property is receiving part of its electric service from an independent solar energy producer that has retained ownership of a solar electric generation system that is located on an adjacent real property. The independent solar energy producer provides electric service to the current owner of this real property through a long-term contract for electric service. The independent solar energy producer is required to provide a copy of the contract to a prospective buyer of this real property within ten (10) days of the receipt of a written request from the current owner of this real property.”

Other information that must be disclosed to the County Recorder includes:

The address and assessor’s parcel number of the real property against which the notice is recorded.

• The name, address, and telephone number of the independent solar energy producer, and any other contact information deemed necessary by the independent solar energy producer.
• A statement identifying whether the contract is a contract for the sale of electricity or for the lease of a solar energy system, and providing the dates on which the contract commences and terminates.
• A plain language summary of the potential costs, consequences, and assignment of responsibilities, if any, that could result in the event the contract is terminated.

The independent solar energy producer must also file another notice when the contract is voided, terminated, sold, assigned, or transferred or when it transfers its obligation under the contract or changes its contact information.

Once the contract is terminated, the independent solar energy producer must record a subsequent document with the County Recorder “extinguishing the Notice of an Independent Solar Energy Producer Contract from the title to the real property on which the electricity is generated, and from the title to any adjacent real property on which the electricity was used.”

Lastly, if the solar lessee or PPA customer is attempting to sell his or her house while the contract is still in effect, the independent solar energy producer must provide a copy of the existing contract to the prospective buyer upon written request by the lessee or customer.

References
i   15 U.S.C. 1667-1667f, see http://www.law.cornell.edu/uscode/15/1667.shtml et seq.
ii  California Civil Code Section 2985.7 resembles Regulation M, but it only applies to vehicle leasing.
iii See definition of “total contractual obligation” at http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&sid=035fd7cea3f1594d3df0888bd5e6ec25&rgn=div9&view=text&node=12:2.0.1.1.14.0.5.10.27&idno=12.
iv  The date when the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010, which amended this provision of the Consumer Leasing Act, becomes effective.
v   Amendments to Regulation M, implementing the Dodd-Frank Act, are underway now.  See http://edocket.access.gpo.gov/2010/pdf/2010-31530.pdf.
vi  See definition of “credit sale” at http://www.law.cornell.edu/uscode/html/uscode15/usc_sec_15_00001602—-000-.html.  These types of financial transactions are subject to disclosure requirements in Regulation Z, which implements other provisions of the federal Truth in Lending Act.  See disclosure requirements under Section 226.18(j) at http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&sid=c9973866e7ab6aad1df3878281241496&rgn=div8&view=text&node=12:3.0.1.1.7.3.8.2&idno=12.
vii For more compliance details, see Supplement I to Part 213—Official Staff Commentary to Regulation M at http://ecfr.gpoaccess.gov/cgi/t/text/text-idx?c=ecfr&sid=035fd7cea3f1594d3df0888bd5e6ec25&rgn=div9&view=text&node=12:2.0.1.1.14.0.5.10.27&idno=12.

CALSEIA will be hosting Solar Summerfest, the main networking event of Intersolar North America, held on the night of the exhibition opening.

Sponsorship opportunities are available for Solar Summerfest!  These offer a great opportunity to promote your brand before a captive audience.  Sponsorships are selling quickly, so don’t miss out!  Contact us today at solarsummerfest@gmail.com.

Solar Summerfest is CALSEIA’s annual fundraising event, and all proceeds go to support the organization’s efforts to promote a sustainable solar industry in California.

Intersolar North America July 9-12, 2012

Intersolar North America will be held July 9th – 12th, 2012. The Intersolar North America exhibition takes place annually in San Francisco’s Moscone Center West Hall and its conference is held at the InterContinental Hotel. Since its establishment in 2008, the exhibition and conference have developed into the premier platform for the solar industry in North America. Intersolar North America exhibition focuses on photovoltaics and solar thermal technology and has very quickly established itself among manufacturers, suppliers, wholesalers and service providers as an international industry meeting point. http://www.intersolar.us/

CALSEIA MEMBER BENEFITS

We encourage all CALSEIA members to attend Intersolar North America’s conference sessions, the exhibition, and Solar Summerfest.

Benefits available to CALSEIA member-companies include:

• Intersolar member rate: 25% discount on exhibition space (just $32 per square foot)
• High priority for booth placements
• 10% discount on Intersolar conference sessions
• Free early-bird visitor registration via online portal (registration opens in February)
• Discounted Solar Summerfest tickets for CALSEIA members

If you will be exhibiting at Intersolar North America, reserve your preferred booth space now with Intersolar’s Booth Selector (www.intersolar.us → Exhibitor Service → Participation). Mention that you are a CALSEIA member on page 3 of the application! Booth space is still available but selling very quickly! Don’t miss the opportunity to be a part of the 2012 event!

HOTEL DISCOUNTS FOR EXHIBITORS AND VISITORS

Intersolar has negotiated the lowest rates with its 45 preferred hotels. Exhibitors need to make their reservations through the official Exhibitor Housing Site to receive the discounted rates. Booking hospitality suites offers exhibitors the opportunity to host small groups for business or casual gatherings. Hospitality suites are an exclusive benefit for exhibitors – you must be an exhibitor to apply for these rooms. View Travel Services (link to http://www.intersolar.us/en/menues-north-america/service-links/book-your-hotel.html)

We look foward to seeing you at Solar Summerfest and Intersolar North America 2012!

The California Solar Energy Industries Association (CALSEIA) released a study on Feed in Tariff (FIT) pricing showing that the value of renewable generation is between 5 and 12 cents per kWh over the wholesale price of electricity from natural gas, a fossil fuel. This additional value is based on the environmental, transmission, and reliability values of adding renewable generation to California’s electricity supply. CALSEIA is the largest solar industry trade association in California, representing more than 200 solar companies doing business in California. Sue Kateley, Executive Director of CALSEIA, said, “These attributes are beneficial to ratepayers. Currently, the only rate that the utilities will pay for local renewable generation is 9 cents per kWh, which has the effect of zeroing out the added value of renewable generation. SB 32 corrects this by authorizing the California Public Utilities Commission to include these values when it sets the rates for local renewable generation.”

Senator Negrete-McLeod (D-Chino), the author of SB 32, welcomed the study. “The Commission needs to take action now to implement SB 32,” said Negrete-McLeod. “There’s no reason to delay and plenty of important reasons to move ahead. My district has a vast supply of empty warehouse roofs that can support solar power generation, and many people who are looking for work. The Feed in Tariff will help to bring clean power to California and jobs to people who need them now.”

Bernadette Del Chiaro, Director of Energy Policy for Environment California said, “This study further proves the need to build more clean energy generation in California. California needs to meet its long-term environmental and greenhouse gas reduction goals through encouraging solar projects within our communities. It is critically important that the CPUC act now to implement the FIT.”

Dan Geis, spokesman for the Agricultural Energy Consumers Association added his support to FITs, “The agricultural industry sees this as a major step forward in reducing the barriers to developing small renewable projects in California. The CALSEIA study shows that there is an excellent opportunity to build solar and biogas projects quickly in an equitable way for ratepayers.”

California organizations supporting the implementation of Feed in Tariffs include the Environment California, the Sierra Club, the Center for Energy Efficiency and Renewable Technology, The California Building Industry Association, the Inland Empire Utilities Agency, the California bio-energy providers, Sustainable Conservation, and the FIT Coalition.

Sue Kateley said that, “This report demonstrates a clear way to establish Feed in Tariffs in a sensible way and will create thousands of jobs for electricians, laborers, designers, engineers, and administrative personnel, which would be a welcome relief to California’s jobseekers.  We look forward to working with the Commission and the state’s utilities to get this done this summer. There’s no reason to delay what will be a major benefit for this state.”

“Feed-in tariffs have proven to be the most effective policy instrument to support solar energy development,” said Dan Martin, senior vice president, SEMI PV Group, the global trade association serving the photovoltaic supply chain. “The report makes a strong case for implementing existing state legislation with meaningful rate incentives that will encourage fair and responsible outcomes for all energy stakeholders in California.”

The CALSEIA study follows the recent report issued by the Los Angeles Business Council, which reached similar conclusions to the CALSEIA study and recommended that the Los Angeles Department of Water and Power move forward to implement a FIT. The LADWP has already proposed a FIT and is expected to initiate the program later this year. The Sacramento Municipal Utility District implemented a FIT in January 2010 and sold out 100MW of FIT contracts on the day it opened.

Kateley adds, “The SMUD FIT demonstrated that with the right policy mechanism, the market will respond. No new transmission lines were involved in these projects, saving ratepayers millions of dollars and years of delays in bringing new solar projects on line.”

A copy of the report is available to download here: pv-above-mpr-methodology-final-20100423

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This report is the first of its kind in valuing the attributes of solar water heating. This report calls attention to the fact that Solar Water Heating, for every forty cents invested provides up to $3.45 in benefits in California. Major findings are:

• Natural Gas Use Reduction. Californian use 5 billion therms of natural gas for water heating – 38% of all of the residential natural gas consumed each year in California (a ‘therm’ is roughly equivalent to 29 kilowatt-hours). When AB 1470 is implemented California will save 26 million therms of natural gas every year with merely 200,000 solar water heaters – roughly equivalent to 1 megawatt of electricity. If the use of Solar Water Heating is expanded to 1.75 million installations, California will save 1.2 billion therms per year. This higher volume was included in one of the proposed AB 32 measures. AB 1470 is a critical building block to the larger goal.

• Greenhouse Gas Emission Reduction. When AB 1470 is implemented, California will reduce Greenhouse Gas emissions by 0.14 million metric tons. Solar water heating also provides reductions of 600 pounds per day each of lung-damaging PM2.5 and NOx emissions, as well as other unhealthy emissions. Solar water heating is part of the solution to addressing Climate Change and help reducing public health costs from harmful emissions.

• Job Creation.  200,000 Solar Water Heater installations will require up to 32 hours of labor per installation. The statewide median annual wages for (i) a solar installation manager ($50,000-$72,800/year), (ii) an experienced solar thermal installer ($52,000/year), (iii) an entry level solar thermal installer ($31,200/year), (iv) solar designer or engineer ($50,00-$83,200/year), and (v) a solar representative or estimator ($40,000-$62,400). Solar water heating creates good paying jobs that will be spread throughout communities in California.

• Lagging the rest of the World. In a survey of 48 countries, the United States is last in its use of solar thermal solar thermal (including Austria, Germany, China, Taiwan, Japan, Brazil, South Africa, and Switzerland).

Environment California, sponsors of AB 1470, summarized the benefits of solar water heating to California:
“In addition to building for more solar electric power systems in California, there is an equally urgent need to develop the other most promising solar technology: solar hot water technologies. ”

Solar thermal technologies can bring many benefits to California. Simple solar hot water systems available today can cut natural gas usage up to 50% per home or business. When combined with energy efficiency measures and solar electric systems, California can build “zero energy buildings” where the home or business displaces all their energy needs with solar technologies.

Solar thermal technologies have tremendous potential to reduce our dependence on fossil fuels and reduce air pollution. According to a study by the University of Wisconsin-Madison, equipping 75% of U.S. buildings and homes with solar thermal technologies by 2015 would cut more than 300 million tons of CO2 pollution each year and at some of the lowest costs. To put this number in context, it is roughly twice the annual global warming pollution reductions to be achieved by California’s landmark global warming bill of 2006 (AB 32). “

ABOUT THE TECHNOLOGY.  A typical solar water heating system consists of a 40 square foot panel mounted on the roof, a storage tank for the solar-heated water, a low-speed pump, and a controller to activate energy collection. Some systems are configured in a manner that places the storage tank above the solar panel, which eliminates the need for a pump. The solar panels and systems are rated for performance and durability by the Solar Rating Certification Corporation, and independent testing organization. Solar Water Heating Systems qualify for Energy Star Ratings.

TAX CREDITS. Solar Water Heating systems are eligible for both commercial and residential solar tax credits. The IRS tax credit is 30% of the cost of the system. The maximum credit for residential systems is $2,000.

LOCAL REBATES IN CALIFORNIA. The Center for Sustainable Energy adminsters a program that provides a rebate up to $1500 (www.sdenergy.org). This rebate is available in San Diego and in Santa Clara. In Sacramento, the Sacramento Municipal Utility District (www.smud.org) provide a $1500 rebate. All programs have particpation requirements for performance and reliability.

to download the complete report, click on this link: CALSEIA Solar Water Heating Value

CALSEIA is encouraging state policy to open the market for ‘distributed solar generation.’ This type of project is large enough to provide energy to more than one customer. It could be on a rooftop, a parking lot, or open land within a community. Distributed solar generation projects could be as small as 250 kilowatts to as large as 20 megawatts (1 megawatt is generally enough power for approximately 750 homes).

Distributed solar generation and large-scale utility solar generation can work together to provide clean renewable power to California.

Right now, market rules prevent distributed solar projects from being developed. The kinds of rules that are needed include a standard contract (also called feed-in tariffs) for project developers to enter into with a local utility and a purchase price that reflects the energy, environmental, time of delivery, location, and other attributes of the solar project. Each of these attributes has a value, for example, locating a project close to where energy is needed reduces energy losses that occur when electricity travels over long distances. In the diagram below, the box with the dotted line illustrates that path to market that is not currently available for solar projects to be built in California.

CALSEIA is working to remove barriers to distributed solar generation through legislative and regulatory policy changes. Technologies that can provide solar electric generation include photovoltaics and solar thermal electric generation.

http://osfm.fire.ca.gov/training/photovoltaics.php

<A HREF=”http://calseia.org” alt=”solar energy”><B>California Solar Energy</B></A>

CALIFORNIA CODES

CIVIL CODE 714.

(a) Any covenant, restriction, or condition contained in any deed, contract, security instrument, or other instrument affecting the transfer or sale of, or any interest in, real property that effectively prohibits or restricts the installation or use of a solar energy system is void and unenforceable.

(b) This section does not apply to provisions that impose reasonable restrictions on solar energy systems. However, it is the policy of the state to promote and encourage the use of solar energy systems and to remove obstacles thereto. Accordingly, reasonable restrictions on a solar energy system are those restrictions that do not significantly increase the cost of the system or significantly decrease its efficiency or specified performance, or that allow for an alternative system of comparable cost, efficiency, and energy conservation benefits.

(c) (1) A solar energy system shall meet applicable health and safety standards and requirements imposed by state and local permitting authorities.(2) A solar energy system for heating water shall be certified by the Solar Rating Certification Corporation (SRCC) or other nationally recognized certification agencies. SRCC is a nonprofit third party supported by the United States Department of Energy. The certification shall be for the entire solar energy system and installation.(3) A solar energy system for producing electricity shall also meet all applicable safety and performance standards established by the National Electrical Code, the Institute of Electrical and Electronics Engineers, and accredited testing laboratories such as Underwriters Laboratories and, where applicable, rules of the Public Utilities Commission regarding safety and reliability.

(d) For the purposes of this section: (1) (A) For solar domestic water heating systems or solar swimming pool heating systems that comply with state and federal law, “significantly” means an amount exceeding 20 percent of the cost of the system or decreasing the efficiency of the solar energy system by an amount exceeding 20 percent, as originally specified and proposed.(B) For photovoltaic systems that comply with state and federal law, “significantly” means an amount not to exceed two thousand dollars ($2,000) over the system cost as originally specified and proposed, or a decrease in system efficiency of an amount exceeding 20 percent as originally specified and proposed. (2) “Solar energy system” has the same meaning as defined in paragraphs (1) and (2) of subdivision (a) of Section 801.5.

(e) Whenever approval is required for the installation or use of a solar energy system, the application for approval shall be processed and approved by the appropriate approving entity in the same manner as an application for approval of an architectural modification to the property, and shall not be willfully avoided or delayed.

(f) Any entity, other than a public entity, that willfully violates this section shall be liable to the applicant or other party for actual damages occasioned thereby, and shall pay a civil penalty to the applicant or other party in an amount not to exceed one thousand dollars ($1,000).

(g) In any action to enforce compliance with this section, the prevailing party shall be awarded reasonable attorney’s fees.

(h) (1) A public entity that fails to comply with this section may not receive funds from a state-sponsored grant or loan program for solar energy. A public entity shall certify its compliance with the requirements of this section when applying for funds from a state-sponsored grant or loan program.(2) A local public entity may not exempt residents in its jurisdiction from the requirements of this section.

714.1. Notwithstanding Section 714, any association, as defined in Section 1351, may impose reasonable provisions which:

(a) Restrict the installation of solar energy systems installed in common areas, as defined in Section 1351, to those systems approved by the association.

(b) Require the owner of a separate interest, as defined in Section 1351, to obtain the approval of the association for the installation of a solar energy system in a separate interest owned by another.

(c) Provide for the maintenance, repair, or replacement of roofs or other building components.

(d) Require installers of solar energy systems to indemnify or reimburse the association or its members for loss or damage caused by the installation, maintenance, or use of the solar energy system. 714.5. The covenants, conditions, and restrictions or other management documents shall not prohibit the sale, lease, rent, or use of real property on the basis that the structure intended for occupancy on the real property is constructed in an offsite facility or factory, and subsequently moved or transported in sections or modules to the real property. Nothing herein shall preclude the governing instruments from being uniformly applied to all structures subject to the covenants, conditions, and restrictions or other management documents.This section shall apply to covenants, conditions, and restrictions or other management documents adopted on and after the effective date of this section.

801.5.

(a) The right of receiving sunlight as specified in subdivision 18 of Section 801 shall be referred to as a solar easement. “Solar easement” means the right of receiving sunlight across real property of another for any solar energy system. As used in this section, “solar energy system” means either of the following:(1) Any solar collector or other solar energy device whose primary purpose is to provide for the collection, storage, and distribution of solar energy for space heating, space cooling, electric generation, or water heating.(2) Any structural design feature of a building, whose primary purpose is to provide for the collection, storage, and distribution of solar energy for electricity generation, space heating or cooling, or for water heating.

(b) Any instrument creating a solar easement shall include, at a minimum, all of the following:(1) A description of the dimensions of the easement expressed in measurable terms, such as vertical or horizontal angles measured in degrees, or the hours of the day on specified dates during which direct sunlight to a specified surface of a solar collector, device, or structural design feature may not be obstructed, or a combination of these descriptions.(2) The restrictions placed upon vegetation, structures, and other objects that would impair or obstruct the passage of sunlight through the easement.(3) The terms or conditions, if any, under which the easement may be revised or terminated.

GOVERNMENT CODE 65850.5.

(a) The implementation of consistent statewide standards to achieve the timely and cost-effective installation of solar energy systems is not a municipal affair, as that term is used in Section 5 of Article XI of the California Constitution, but is instead a matter of statewide concern. It is the intent of the Legislature that local agencies not adopt ordinances that create unreasonable barriers to the installation of solar energy systems, including, but not limited to, design review for aesthetic purposes, and not unreasonably restrict the ability of homeowners and agricultural and business concerns to install solar energy systems. It is the policy of the state to promote and encourage the use of solar energy systems and to limit obstacles to their use. It is the intent of the Legislature that local agencies comply not only with the language of this section, but also the legislative intent to encourage the installation of solar energy systems by removing obstacles to, and minimizing costs of, permitting for such systems.

(b) A city or county shall administratively approve applications to install solar energy systems through the issuance of a building permit or similar nondiscretionary permit. Review of the application to install a solar energy system shall be limited to the building official’s review of whether it meets all health and safety requirements of local, state, and federal law. The requirements of local law shall be limited to those standards and regulations necessary to ensure that the solar energy system will not have a specific, adverse impact upon the public health or safety. However, if the building official of the city or county has a good faith belief that the solar energy system could have a specific, adverse impact upon the public health and safety, the city or county may require the applicant to apply for a use permit.

(c) A city or county may not deny an application for a use permit to install a solar energy system unless it makes written findings based upon substantial evidence in the record that the proposed installation would have a specific, adverse impact upon the public health or safety, and there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact. The findings shall include the basis for the rejection of potential feasible alternatives of preventing the adverse impact.

(d) The decision of the building official pursuant to subdivisions (b) and (c) may be appealed to the planning commission of the city or county.(e) Any conditions imposed on an application to install a solar energy system shall be designed to mitigate the specific, adverse impact upon the public health and safety at the lowest cost possible.

(f) (1) A solar energy system shall meet applicable health and safety standards and requirements imposed by state and local permitting authorities.(2) A solar energy system for heating water shall be certified by the Solar Rating Certification Corporation (SRCC) or other nationally recognized certification agency. SRCC is a nonprofit third party supported by the United States Department of Energy. The certification shall be for the entire solar energy system and installation.(3) A solar energy system for producing electricity shall meet all applicable safety and performance standards established by the National Electrical Code, the Institute of Electrical and Electronics Engineers, and accredited testing laboratories such as Underwriters Laboratories and, where applicable, rules of the Public Utilities Commission regarding safety and reliability.

(g) The following definitions apply to this section:(1) “A feasible method to satisfactorily mitigate or avoid the specific, adverse impact” includes, but is not limited to, any cost-effective method, condition, or mitigation imposed by a city or county on another similarly situated application in a prior successful application for a permit. A city or county shall use its best efforts to ensure that the selected method, condition, or mitigation meets the conditions of subparagraphs (A) and (B) of paragraph (1) of subdivision (d) of Section 714 of the Civil Code. (2) “Solar energy system” has the same meaning set forth in paragraphs (1) and (2) of subdivision (a) of Section 801.5 of the Civil Code.(3) A “specific, adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified, and written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete.65851. For such purposes the legislative body may divide a county, a city, or portions thereof, into zones of the number, shape and area it deems best suited to carry out the purpose of this chapter. 65852. All such regulations shall be uniform for each class or kind of building or use of land throughout each zone, but the regulation in one type of zone may differ from those in other types of zones. 66475.3. For divisions of land for which a tentative map is required pursuant to Section 66426, the legislative body of a city or county may by ordinance require, as a condition of the approval of a tentative map, the dedication of easements for the purpose of assuring that each parcel or unit in the subdivision for which approval is sought shall have the right to receive sunlight across adjacent parcels or units in the subdivision for which approval is sought for any solar energy system, provided that such ordinance contains all of the following:

(1) Specifies the standards for determining the exact dimensions and locations of such easements.

(2) Specifies any restrictions on vegetation, buildings and other objects which would obstruct the passage of sunlight through the easement.

(3) Specifies the terms or conditions, if any, under which an easement may be revised or terminated.

(4) Specifies that in establishing such easements consideration shall be given to feasibility, contour, configuration of the parcel to be divided, and cost, and that such easements shall not result in reducing allowable densities or the percentage of a lot which may be occupied by a building or a structure under applicable planning and zoning in force at the time such tentative map is filed.

(5) Specifies that the ordinance is not applicable to condominium projects which consist of the subdivision of airspace in an existing building where no new structures are added.For the purposes of this section, “solar energy systems” shall be defined as set forth in Section 801.5 of the Civil Code.

For purposes of this section, “feasibility” shall have the same meaning as set forth in Section 66473.1 for the term “feasible”.

HEALTH AND SAFETY CODE 17959.1.

(a) A city or county shall administratively approve applications to install solar energy systems though the issuance of a building permit or similar nondiscretionary permit. However, if the building official of the city or county has a good faith belief that the solar energy system could have a specific, adverse impact upon the public health and safety, the city or county may require the applicant to apply for a use permit.

(b) A city or county may not deny an application for a use permit to install a solar energy system unless it makes written findings based upon substantial evidence in the record that the proposed installation would have a specific, adverse impact upon the public health or safety, and there is no feasible method to satisfactorily mitigate or avoid the specific, adverse impact. This finding shall include the basis for the rejection of potential feasible alternatives of preventing the adverse impact.

(c) Any conditions imposed on an application to install a solar energy system must be designed to mitigate the specific, adverse impact upon the public health and safety at the lowest cost possible.

(d) (1) A solar energy system shall meet applicable health and safety standards and requirements imposed by state and local permitting authorities.(2) A solar energy system for heating water shall be certified by the Solar Rating Certification Corporation (SRCC) or other nationally recognized certification agency. SRCC is a nonprofit third party supported by the United States Department of Energy. The certification shall be for the entire solar energy system and installation.(3) A solar energy system for producing electricity shall meet all applicable safety and performance standards established by the National Electrical Code, the Institute of Electrical and Electronics Engineers, and accredited testing laboratories such as Underwriters Laboratories and, where applicable, rules of the Public Utilities Commission regarding safety and reliability.(e) The following definitions apply to this section:(1) “A feasible method to satisfactorily mitigate or avoid the specific, adverse impact” includes, but is not limited to, any cost effective method, condition, or mitigation imposed by a city or county on another similarly situated application in a prior successful application for a permit. A city or county shall use its best efforts to ensure that the selected method, condition, or mitigation meets the conditions of subparagraphs (A) and (B) of paragraph (1) of subdivision (d) of Section 714 of the Civil Code. (2) “Solar energy system” has the meaning set forth in paragraphs (1) and (2) of subdivision (a) of Section 801.5 of the Civil Code. (3) A “specific, adverse impact” means a significant, quantifiable, direct, and unavoidable impact, based on objective, identified, and written public health or safety standards, policies, or conditions as they existed on the date the application was deemed complete.

17959.3.

(a) It is the intent of the Legislature to encourage the use of passive solar energy design. The Legislature recognizes that building code regulations with regard to natural light and ventilation standards have to be modified to permit existing buildings to be retrofitted with passive solar energy.

(b) Notwithstanding Section 17922, any city or county may by ordinance or regulation permit windows required for light and ventilation of habitable rooms in dwellings to open into areas provided with natural light and ventilation which are designed and built to act as passive solar energy collectors.

(c) On or before September 1, 1999, the department shall, after consulting with the State Energy Resources Conservation and Development Commission, prepare, adopt, and submit building standards to implement the provisions of this section for approval as part of the California Building Standards Code pursuant to Chapter 4 (commencing with Section 18935) of Part 2.5.

• utility scale generation
• distributed generation
• on-site generation

Utility Scale Generation. Large projects that use solar thermal or photovoltaic systems that generate electricity which is fed into the State’s transmission system

Distributed Generation. Medium sized projects that use solar thermal or photovoltaic systems that generate electricity which is fed into the local utility’s transmission system. Some of these systems also provide thermal heating, cooling, and water heating for industrial or process use.

On-site Generation. Projects that are designed to meet the energy needs of the site. These can be either solar thermal or photovoltaic systems. Solar thermal is used to provide water heating, space heating, or cooling. Typical solar thermal systems have energy storage on site. Solar electric systems use photovoltaic technologies to generate electricity. The solar electric systems are connected to the transmission system and allow electricity that is not used on site to ‘run the meter backward’ and accrue credits for the site owner that can be used when the solar electric system is not generating energy (i.e., at night or on cloudy days).

A typical home would have a 40 square foot solar water heating panel and a 400 square foot array of solar electric modules (these numbers will vary based on on-site energy use.

CALSEIA and a related organization, ASPV, commissioned economic analyses on the value of on-site solar electric and solar thermal technologies. Graphs showing the value to California for these technologies are shown below.

Credit: ASPV, 2005