Page 198 - Sustainable Cities and Communities Design Handbook

172 Sustainable Cities and Communities Design Handbook

(7) That the solar energy system has meters or other devices in place to
monitor and measure the system’s performance and the quantity of elec-
tricity generated by the system.
(8) That the solar energy system be installed in conformance with the man-
ufacturer’s specifications and in compliance with all applicable electrical
and building code standards.”

In implementing the DWP Incentive Program consistent with the above-
mentioned criteria, DWP customers have been given an alternative to pur-
chasing and owning the PV system. The customer may lease the system from a
third party, provided that the following conditions are met:
1. The lease is guaranteed for at least 10 years (to cover the anticipated period
of energy production that the incentive is based on.
2. The PV system is operational and operated at the expected generation
capacity for a 10-year term.
3. The lease provides for customer ownership by the end of the 10-year term.
4. The lease payments may not be based on energy production from the
equipment, which could be interpreted as the sale of electricity.
5. The incentive payment will be paid directly to the customer and is not
assignable to a third party, but the customer may request that DWP forward
the customer’s incentive payment directly to the customer’s contractor or
the manufacturer, installer, or owner of the solar PV system.

The Incentive Program requires that the lease agreement for the equipment
be provided to DWP for review should the lease be modified or amended.

TREATMENT OF ENVIRONMENTAL INCENTIVES

When a governmental agency is considering use of one of the aforementioned
legal mechanisms for an alternative energy program, it is important that the
governmental agency control, if possible, as many of the environmental
attributes, environmental incentives, and reporting rights as possible. As used
herein, the terms “environmental attributes,” “environmental incentives,” and
“Reporting Rights” are defined as follows:

“Environmental Attributes” means the characteristics of electric power
generation at the Generating Facility (the electric power generation
equipment, controls, meters, etc. connected to the energy delivery point as
a fixture on the site) that have intrinsic value, separate and apart from the
Energy Output (total quantity of all actual net energy generated), arising
from the perceived environmental benefits of the Generating Facility of the
Energy Output, including but not limited to all environmental and other
attributes that differentiate the Generating Facility or the Energy Output
from energy generated by fossil-fuel based generation units, fuels or
resources, characteristics of the Generating Facility that may result in the