Combined Heat and Power Partnership
California Feed-in Tariff
| Date Last Updated | 11/16/2012 |
| Incentive Type | Feed-in Tariff |
| State/Federal | CA |
| Incentive Administrator/Contact Office | California Public Utilities Commission |
| Incentive Initiation Date | 10/14/2007 |
| Incentive Size and Funding Source | To help stimulate CHP deployment, the state of California has initiated a feed-in-tariff (FIT) for CHP systems. The FIT price is tied to natural gas prices adjusted by the time of day and season (Market Price Referent (MPR)). California's FIT is not preempted by FERC as long as the CHP generators are qualified facilities and the rate does not exceed the avoided cost. FERC approved California?s FIT design that included multi-tiered rates (higher rates for greater efficiency) and adders for transmission constraints and environmental externalities. |
| Eligible Recipient | Owners of new CHP systems in operation after January 1, 2008. |
| Eligible Fuel | Does Not Specify |
| Eligible Project Size (MW) | <20 MW |
| Minimum Efficiency Required (%) | >62% |
| Other Selected Eligibility Criteria | Qualifications for CHP Systems:
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| Utility | PG&E, SCE, and SDG&E |
| Other Incentive Details | California has targeted up to 6,500 MW of new CHP capacity by 2030 as a critical element in meeting its GHG reduction goals; this goal was established under Governor Brown's Clean Energy Jobs Plan released in 2010. |
| Resource Website(s) |
