Continuation of the New Solar Homes Partnership Program (NSHP) - Docket # 16-NSHP-01

David Hochschild, Renewables Lead Commissioner

The CPUC considered the Energy Commission’s request as part of CPUC rulemaking 12-11-005 and on June 9, 2016 approved Decision 16-06-006 which requires the IOUs to provide $111.78 million in funding for the continuation of the NSHP program, designates the Energy Commission to serve as program administrator, and establishes administrative and oversight-related requirements for the continuation of the program.

Senate Bill 1 (Murray, Chapter 132, Statutes of 2006) established the California Solar Initiative (CSI) with the goals of (1) installing solar energy systems with a generating capacity equivalent to 3,000 megawatts, (2) establishing a self-sufficient solar industry within ten years, and (3) placing solar energy systems on 50 percent of new California homes by 2020. The CSI is being implemented by the Energy Commission, the California Public Utilities Commission (CPUC), and the state’s local publicly owned electric utilities in different programs that share the same broad goals.

The NSHP program is the Energy Commission’s component of the CSI and is limited to solar on new residential construction. Launched in January 2007, the program provides financial incentives for homeowners, builders, and developers to include solar energy systems on new, energy efficient homes that will contribute to the CSI goals.

Although NSHP was established by SB 1 as a $400 million program under the CSI, the program relied on moneys in the Renewable Resource Trust Fund that were allocated to the Energy Commission’s Emerging Renewables Program and totaled approximately $282 million through 2011. This is far short of the funding level identified in SB 1 for the NSHP.

To address this funding shortfall, on November 13, 2015 the Energy Commission requested the California Public Utilities Commission (CPUC) to continue the NSHP program pursuant to Public Utilities Code section 2851 (e)(3). Section 2851 (e)(3) authorizes the CPUC to require Pacific Gas and Electric Company, Southern California Edison Company, and San Diego Gas & Electric Company (collectively investor owned utilities, or IOUs) to continue the NSHP program pursuant to guidelines established by the Energy Commission until the $400 million program budget in the law is reached. Section 2851 (e)(3) also authorizes the CPUC to designate a third party, including the Energy Commission, to administer the continuation of the NSHP program.

Effective June 23, 2016, a new docket number (16-NSHP-01) was established for the continuation of the NSHP program as part of CPUC rulemaking 12-11-005 and approved decision 16-06-006. This new docket number replaces the existing docket number 06-NSHP-01 for previous NSHP related matters. Although the previous docket 06-NSHP-01 will be closed, those notices and documents under that docket will still be accessible through the new docket.

For more information on the NSHP, please visit the Go Solar California Website.

Decision 16-06-006 is available at

Elizabeth Hutchison
California Energy Commission
1516 NInth Street, MS-45
Sacramento, CA 95814
Phone: 916-654-3838

News media, please call: Media & Public Communications Office - 916-654-4989.

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