San Diego Community Power to offer rebates to customers who install solar, battery systems

San Diego Community Power announced Wednesday a $55 million initiative that will offer rebates and incentives to encourage its customers to install solar-plus-battery systems in their homes.

“This is a win-win that reduces strain on the (electric) grid and makes energy more reliable for everyone,” said Colin Santulli, senior director of programs at Community Power. “The program benefits all ratepayers by supporting local energy development through a network of residential batteries.”

For customers who qualify for the Solar Battery Savings program, Community Power will offer upfront rebates on the installation of rooftop solar systems that are paired with battery storage. Customers who already have solar but don’t have batteries can receive rebates on the battery system they install.

The amount of the rebates vary depending on the size of the installation, but when Community Power launched a pilot program last year, it attracted about 1,600 participants and the average incentive came to nearly $7,000 per battery.

The program also offers customers a performance incentive when they discharge 50% of electricity stored by their batteries between 4 and 9 p.m. Monday through Friday, when demand on the grid is at its highest and electricity prices are most expensive.

The weekday dispatch of 50% will result in a payback to the customer of 10 cents per kilowatt-hour.

“The board of directors of Community Power, building off the success of our pilot, has committed $55 million over the next five years to turn this into a full-time program,” Santulli said.

To be eligible, participants must be customers of San Diego Community Power, own a home in Community Power’s service area and commit to installing a new solar-plus-battery system or have an existing solar system in place.

To get started, go to SDCommunityPower.org/SBS and the website will connect customers to a list of qualified contractors in the area who can evaluate options, handle the paperwork and install the equipment.

“Small businesses are the heart and soul of San Diego and this program was built for family-owned businesses,” said Jake Marshall, operations manager for San Diego Greentech Renewables, a solar equipment provider that employs a staff of about 80.

The pilot program “gave San Diego contractors an opportunity to win against large national companies who outsource their labor and are headquartered in other states,” Marshall said.

Community Power’s Solar Battery Savings program comes as the 30% federal tax credit for residential solar, under Section 25D of the U.S. Tax Code, expires at the end of this year.

The cost of installing rooftop solar varies depending on the home, but the price tag can often reach $30,000.

But even with the federal tax credit sunsetting, Santulli said, “For most customers, installing a solar system with a battery is going to have long-term benefits to their bill over time. So in this time where the cost of living is a concern, we’re looking for ways to help our customers save money.”

San Diego Community Power provides power for nearly 957,000 customer accounts for the cities of San Diego, Chula Vista, La Mesa, Encinitas, Imperial Beach and National City, plus unincorporated areas of San Diego County.

It’s one of 25 community choice aggregation, or CCA, programs that have sprung up across California in recent years.

Created by the California Legislature in 2002 to encourage the growth of renewable energy and provide competition to traditional investor-owned utilities, CCAs are designed to offer customers higher percentages of renewable sources at comparable or slightly lower rates.