Introduction to Programs, Rebates, and Incentives

Where Does the Money Come From?

The SCE incentive and rebate programs are paid for by California ratepayers and administered by SCE under the auspices of the CPUC.

The CPUC sets goals for the utility companies, and pays the utility companies money to create and implement various programs. The utility companies then identify ways to apply the money to meet these goals.
In 2007, according to the CPUC, they "created the most ambitious energy efficiency and conservation campaign in the history of the utility industry in the U.S."

How Can You Receive Your Rebates?

The specifics of how you participate in SCE's programs vary with the program. The following topic includes an overview of some programs of interest, including the process for receiving rebates through the Express Efficiency and Standard Performance Contract programs.

Express Solutions Program: Is designed for small to medium sized nonresidential customers who maintain a monthly demand of less than 500 kW.
It offers SCE business customers generous cash rebates toward the purchase and installation of qualified equipment that improves their facility's energy efficiency.

The ES program has earned several national energy efficiency awards as a result of its successful track record-achieving energy savings at an extraordinarily low cost per kWh and kW and encouraging customers who might otherwise not implement the energy saving equipment.

Customized Solution Program: Is designed for all industrial, commercial, and agricultural customers including but not limited to government institutions, schools, manufacturing facilities, office buildings, restaurants, and retail facilities.

Incentives are based on the type of measure installed and the kWh saved over a 12-month period. Applicants are eligible to receive up to 50% of the cost for each measure type.

The CS incentives accommodate "customized projects." Projects are open to a wide range of measures that save energy, and may include common retrofits like lighting, HVAC, and refrigeration upgrades, or more specialized process improvements and customized equipment replacements. Retrofit or new equipment installations are eligible.

Direct Install Program: Is a proven method of delivering retrofit hardware to very small and small customers. This program can help these customers overcome barriers such as higher startup costs and split incentives for leased spaces.

CA Solar Incentives: Is designed for a wide range of customers, including residential homeowners, businesses large and small, government facilities, nonprofit organizations, and more.

SCE offers qualifying customers and system owners cash incentives for buying and installing tracking and fixed photovoltaic (PV) systems.

Incentives are based upon the size and characteristics of the installation and the customer classification.

Demand Response Program: Which are designed to encourage a reduction in energy use during designated high demand periods when overall electricity use is at its highest, or when power grid integrity may be at risk.

SCE's Automated Demand Response (AUTO DR) program that enable eligible customers to participate in DR by reducing electricity usage during periods of peak demand without manual intervention. AUTO DR uses an energy management system (EMS) to automatically achieve specified energy demand reductions (kW and duration) during periods of peak demand.

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Introduction to Programs, Rebates, and Incentives

The Who, What, and Why of Incentives:

Generally speaking, incentives typically come in the form of some type of reward for an action you take to reduce your energy use. It can be in the form of free products, money back for purchases you make, as sharing of the costs by the utility companies, and in order ways.

*For example, with the Direct Install Program, you get a free energy analysis of the facility and free replacement equipment or products (include installation) when you use new, energy-efficient technologies such as fluorescent lighting, refrigeration measures, LED Exit signs, and so on.

*Under the Express Efficiency Program, rebates pay for some or all of the costs associated with installing higher efficiency equipment.

*The California Solar Initiative offers cash incentives on systems for solar-produced electricity. When combined with federal tax incentives, these incentives can cover up to 50% of the total cost of a solar installation.

*The Standard Performance Contract (SPC) program offers financial incentives to offset the cost of installing high efficiency equipment or systems. Incentives can be as much as 50% of the total for each installed measure, and are based on the type of measure, and are based on the type of measure and the kWh saved over a 12-month period.

Purpose of Benefits

The California Public Utilities Commission (CPUC) plays a key role in making California a national and international leader on a number of energy-related initiatives and policies designed to benefit consumers, the environment, and the economy.

The overarching goal of the incentive programs is to foster energy efficiency-reducing the amount of energy we consume without having a negative impact on the way we live or do business, reducing or eliminating the need to build new power plants, avoid energy blackouts, etc.

Who benefits from participating in these programs? We all do-as individuals, as businesses, the state of California, and our country.

At your home and your business, you can save energy, money, and the environment by participating in SCE's various rebate and incentives programs-helping the state move towards a cleaner energy future.

Over time, we will all realize the benefits associated with reduced energy demand and usage. Some of specifics that the CPUC anticipates accomplishing include:

**Prevent the need to build three additional conventional fire power plants, yielding net saving of $2.7 billion, a two-to-one return on investment.

**Cut energy costs for homes and businesses by more than $5 billion.

**Reduce global warming by an estimated 3.4 million tons of carbon dioxide, which is equivalent to taking about 650,000 cars off the road.