California regulators plan to satisfy power storage trade pleas to release cash for the state’s behind-the-meter battery incentive program, directing a further $108.5 million that would enable about 100 megawatts of stalled initiatives in low-income and deprived communities to be constructed this yr.
However regulators don’t plan to shift extra money to this system from a a lot bigger finances devoted to serving low-income or medically-vulnerable individuals residing within the elements of the state most threatened by wildfires and fire-prevention grid outages.
Wednesday’s proposed determination from the California Public Utilities Fee, which is anticipated to return to a vote in late October, applies to California’s Self-Era Incentive Program (SGIP), which has $1.2 billion accessible via 2024 to cowl a part of the prices of putting in batteries at houses and companies.
The CPUC hopes to maneuver $108.5 million from the undersubscribed large-scale storage finances to the over-subscribed fairness finances, with $100 million going to non-residential initiatives and $eight.5 million to residential initiatives. Waitlisted fairness initiatives will obtain the additional funding via a lottery.
Late final yr, the CPUC responded to the state’s rising wildfire problem by earmarking $613 million of the SGIP finances to “equity-resiliency” prospects, providing profitable $1-per-watt incentives — sufficient to totally cowl most battery installations — to individuals on the highest threat of being harmed by energy outages meant to forestall energy strains from sparking lethal wildfires.
However that shift of funds to weak prospects additionally diminished the amount of cash in SGIP’s “fairness” finances, which gives 85 cents-per-watt incentives to low-income and deprived areas that aren’t in zones designated as being at excessive threat of fires or outages.
Consequently, the nonresidential storage fairness finances — meant for colleges, hospitals, authorities buildings and companies in deprived census tracts throughout the state — noticed its present $53 million finances oversubscribed by $306 million quickly after the SGIP program opened for purposes this spring. The residential portion of the fairness finances was additionally oversubscribed by about $20 million.
On the identical time, different SGIP finances classes had been undersubscribed, together with its 50 cents-per-watt incentives for large-scale power storage, which as of August had seen solely $45 million in purposes out of a finances of $298 million. In the meantime, the equity-resiliency finances class had obtained almost $370 million in purposes, however nonetheless had $244 million remaining as of this week.
Some power storage corporations argued that the CPUC ought to redirect unspent cash to waitlisted initiatives in low-income and deprived communities. In June, the California Vitality Storage Alliance (CESA) requested the CPUC to shift $160 million from the under-subscribed large-scale power storage finances, and one other $150 million from the equity-resiliency finances.
CESA’s proposal to shift cash from the equity-resiliency finances met with stiff opposition from teams representing low-income communities threatened by the public-safety energy shutoffs that left a whole lot of hundreds of prospects of Pacific Fuel & Electrical with out energy final yr, in addition to smaller numbers of consumers of the state’s different two investor-owned utilities.
The large and lethal wildfires which have erupted throughout California over the previous month have boosted this argument. So has the rise in demand for equity-resiliency incentives, which have grown considerably since June.
Storage distributors have been benefiting from the profitable incentives this program affords, regardless of early challenges in figuring out prospects which are eligible for them. Final month, Grid Options, a nonprofit that installs photo voltaic and batteries for low-income residents, and U.S. residential solar-storage supplier Sunrun introduced a partnership that’s providing free batteries to prospects eligible for the equity-resiliency fund utilizing this system’s excessive incentives. It’s the primary time Sunrun has offered batteries with out an accompanying rooftop photo voltaic set up.
SGIP incentives are additionally boosting the economics of large-scale solar-storage initiatives being rolled out by community-choice aggregators in PG&E service territory, and in modeling the prices and advantages of constructing microgrids in fire-prone elements of the state.
These new realities had been mirrored in CESA’s new proposal final month, which deserted its earlier request for funds from the equity-resiliency finances. As an alternative, it laid out the plan, now adopted by the CPUC’s proposed determination.
Jin Noh, CESA’s senior coverage supervisor, described this as an “incremental and cautious method” to shifting SGIP funds.
“With the wildfires being so important, and coming so early within the wildfire season, I do see the Fee just about doubling down on their place that they need to preserve a give attention to resiliency on this program,” he mentioned in a Wednesday interview. “They need to ensure that the funds are going to assist these which are most weak.”
On the identical time, the CPUC’s equity-resiliency definitions should be excluding low-income communities which are beneath menace of wildfire-related blackouts, Ted Ko, vp of coverage and regulatory affairs for power storage supplier Stem, mentioned in a Wednesday electronic mail.
“The latest warmth waves, rolling blackouts and raging wildfires argue that this system allocation wants to regulate to a actuality that’s extraordinarily totally different than eight months in the past, when the allocations had been authorised,” he wrote.