Utility Rebates for Efficiency

The utilities that serve the majority of Santa Monica, Southern California Edison (SCE) and Southern California Gas Company (SCG), each offer rebates related to end-use energy efficiency improvements. Refer to their websites (www.sce.com and www.socalgas.com) for the latest programs and rebate amounts.

In general, rebates are offered for high efficiency or new technology options to help consumers overcome the initial higher cost of these items.  Generally, the cost-effectiveness of energy efficient products lies in the fact that energy savings will offset the increased purchase amount (incremental cost) of the item being purchased.  Incentives help to shorten the payback period, or they can actually entice users to choose early replacement of the wasteful, older appliance or product..

The pertinent utility rebates that can be accessed as part of Solar Santa Monica are:

• Express Efficiency
• The Standard Performance Contract
• Gas Incentives

Choosing the Best Utility Rate

Many residents and businesses alike are not always aware that often they have a choice in the “rate schedule” they are “on” from their serving utilities.  Usually at the time the service is established, the utility recommends (or in some cases, requires) a certain rate schedule (also known as the tariff) for which charges are computed.  But rate schedules and the accompanying tariff (rules) that go with that rate schedule have become very difficult to understand and with changing amounts and energy usage patterns, often there is a more advantageous rate to be selected. The utility has rules about the rates you are eligible for and the number of times you change rates, but you as a consumer are entitled to be on the best rate you qualify for in terms of cost. It is the intention of this program that the consumer be given a fair option list and understanding of these rates, especially in light of the fact that consumption will usually become markedly decreased, AND, if solar energy is employed, usage patterns may shift to the extent that time-of-use (TOU) demand rate structures are warranted.

Solar Santa Monica hopes to work with utility representatives to help make sense of the confusing way in which rates and tariffs are written and structured, and to assure consumers that their rate choice, if they have one, is the best one.

For homeowners applying solar photovoltaics to their roof, careful consideration should be made to the option to move to a Time-of-Use (TOU) rate structure. Instead of a “D” or DOMESTIC rate structure, they need to familiarize themselves with the TOU-1-D and TOU-2-D rate structure options that (penalize energy consumption (or consequently  reward reduction of energy use) in the peak periods (weekday afternoons from 12 to 6), and that reward (offer a lower rate for) energy shifted to night hours (generally 9 PM to 6 AM)

Certain qualifying homeowners should also consider the CARE rate, specifically designed to reduce the burden on income-qualifying or fixed income customers. Both the electric and gas utilities offer CARE rates.

Solar Santa Monica will offer classes and materials that will demystify rate schedules and the issues surrounding the timing and use of purchased energy.