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216   CALIFORNIA SOLAR INITIATIVE PROGRAM



          TABLE 8.4  CSI PBI AND EPBB TARGETED ENERGY PAYMENT AMOUNTS

                             ALLOTTED        EPBB PAYMENT/WATT($)   PBI PAYMENT/WATT ($)
          TRIGGER STEP    MW        RES.    COMM.     GOV.     RES.   COMM.       GOV.

               1           50       N/A      N/A      N/A      N/A     N/A        N/A
               2           70       $2.5    $2.5      $3.25    $0.39   $0.39      $0.50
               3          100        2.2     2.2       2.95     0.34    0.34       0.46
               4          130        1.9     1.9       2.65     0.26    0.26       0.37
               5          160        1.55    1.55      2.30     0.22    0.22       0.32
               6          190        1.10    1.10      1.85     0.15    0.15       0.26
               7          215        0.65    0.65      1.40     0.09    0.09       0.19
               8          250        0.35    0.65      1.10     0.05    0.05       0.15
               9          285        0.25    0.25      0.9      0.03    0.03       0.12
              10          350        0.20    0.20      0.70     0.03    0.03       0.10



                platforms, system size, shading conditions, tilt angle, and all the factors that were dis-
                cussed in previous chapters. On the other hand, the PBI incentive is strictly based on
                a predetermined flat rate per kilowatt-hour output over a 5-year period. Incentive pay-
                ment levels are reduced automatically over the duration of the program in 10 steps that
                are directly proportional to the megawatt volume reservation (see Table 8.4).
                  As seen from Table 8.4, rebate payments diminish as the targeted solar power pro-
                gram reaches its 3000-MW energy output. The main reasoning behind downscaling
                the incentive is the presumption that the solar power manufacturers will within the
                next decade be in a position to produce larger quantities of more efficient and less
                expensive photovoltaic modules. As a result of economies of scale, the state will no
                longer be required to extend special incentives to promote the photovoltaic industry by
                use of public funds.



                Expected Performance-Based
                Buydown (EPBB)



                As mentioned earlier, the EPBB is a one-time, upfront incentive that is based upon a
                photovoltaic power cogeneration system’s estimated or predicted future performance.
                This program is targeted to minimize program administration works for relatively
                small systems that do not exceed 100 kWh. As a rule, factors that affect the compu-
                tations of the estimated power performance are relatively simple and take into con-
                sideration such factors as panel count, PV module certified specifications, location of
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