The incentive system under the CSI represents a transition from capacity based payments to performance-based incentives. This new way to calculate incentives is a renunciation of the old system of funding solar based on nameplate capacity. The participants of the program are rewarded for properly installed and maintained solar systems. The incentives largely depend on the system size. Two different incentive paths are offered:
|Incentive Type||System Size||Payments||Costumers||Notes|
|Performance Based Incentives (PBI)||≥ 100 kW||Payments based on actual energy produced ($/kWh) over 5 year term||Residential, Commercial, Government, and Non-Profit||- smaller systems may opt into PBI|
- PBI is required for BIPV (building integrated PV)
|Expected Performance Based Buydown (EPBB)||< 100 kW||One-time up-front lump sum based on expected system performance ($/watt)||Residential, Commercial, Government, and Non-Profit||- residential new construction projects are only funded through NSHP|
The incentives in both categories are subject to an automatic 10 step reduction over the period of the program with a projected decline at a rate of 7 percent each year. The reduction is based on the MW volume of confirmed reservations issued within each utility service territory.