CEC - New Solar Homes Partnership

The New Solar Homes Partnership (NSHP) is administered by the California Energy Commission (CEC) and provides incentives for solar on new home construction. To be eligible for the NSHP incentive, the home must receive electricity from one of the following investor-owned utilities: Pacific Gas and Electric Company, Southern California Edison Company, San Diego Gas and Electric Company, and Bear Valley Electric Service.

Launched on January 2, 2007, the New Solar Homes Partnership (NSHP) is a 10-year, $400 million program to encourage solar in new homes by working with builders and developers to incorporate into the homes high levels of energy efficiency and high-performing solar systems. The NSHP specifically targets the market-rate and affordable housing single-family and multifamily sectors, with the goal of achieving 360 MW of installed solar electric capacity on new homes, and to have solar electric systems on 50% of all new homes built in California by the end of 2016.

Incentives are determined by the housing type and the expected performance of the system, which depends on factors like equipment efficiency, geographic location, orientation, tilt, shading, and time-dependent valuation. These factors are then compared to a reference system in San Jose, California. To qualify for incentives, the residential dwelling unit must achieve certain energy efficiency levels (please refer to the New Solar Homes Partnership Guidebook for specific details and program requirements). The incentive is paid once the system is installed, operational, and has met all program requirements.

Incentive levels:

Market Rate Housing, Affordable Housing Common Areas, and Affordable Housing Systems Owned by Non-Tax-Exempt Entities

Code-Compliant: Expected Performance Based Incentive (EPBI) level as of May 25, 2016 is $0.50/watt. This applies to buildings that comply with the 2013 Standards prior to claiming the solar compliance credit for the 2013 Standards. 

Tier I Incentive: Expected Performance Based Incentive (EPBI) level as of May 25, 2016 is $0.75/watt. This applies to projects that have an energy efficiency compliance margin of at least 15 percent better than the Building Energy Efficiency Standards as specified in Chapter II, Section B of the guidebook.

Tier II Incentive: The EPBI level as of May 25, 2016 is $1.25/watt. This applies to projects that have an energy efficiency compliance margin of at least 30 percent better than the Building Energy Efficiency Standards and a space-cooling compliance margin of at least 30 percent better than the Building Energy Efficiency Standards as specified in Chapter II, Section B of the guidebook.

Affordable Housing Residential Unit Projects With Tax-Exempt System Owners

Code-Compliant: Expected Performance Based Incentive (EPBI) level as of May 25, 2016 is $1.50/watt. This applies to buildings that comply with the 2013 Standards prior to claiming the solar compliance credit for the 2013 Standards. 

Residential Dwelling Units: Expected Performance Based Incentive (EPBI) level as of May 25, 2016 is $1.85/watt.

All incentives will decline over time as specific megawatt targets are achieved. Refer to the NSHP Guidebook and contact the program administrator for complete details.