Solar Energy and Distributed Generation Grant Program

January 30, 2003


The California Energy Commission’s (CEC) Solar Energy and Distributed Generation Grant Program provides grants to California residents to help offset the cost of purchasing and installing new solar energy and distributed generation systems. At this time, the Energy Commission is not accepting applications for funding under this grant incentive program. The State Budget for Fiscal Year 2002/03 does not provide funding for the Solar Energy and Distributed Generation Grant Program. The following solar energy systems are eligible for Program funding: solar domestic water heating systems; solar swimming pool heating systems; and battery backup (electricity storage) for photovoltaic systems. The following distributed generation systems are eligible for Program funding (provided that they meet certain efficiency and environmental specifications): microcogeneration; gas turbines; fuel cells; reciprocating internal combustion engines; and electricity storage (other than for eligible solar energy systems). No more than 20 percent of the program funding may be used for solar swimming pool heating systems, and no more than 20 percent of the funds may used for battery backup or electricity storage systems. Up to $750 is available for eligible solar energy systems except swimming pool heating applications, which are eligible for a maximum of $250 per system. Up to $2,000 or 10 percent of the total system cost, which ever is less, is available for eligible distributed generation systems. A maximum of $750 is available for battery storage systems for Emerging Renewable Buydown Program participants. Multi-unit systems serving five or more single family dwellings or separate business units that meet the Program eligibility requirements are eligible for up to 50 percent of the maximum amount available on a per dwelling/unit basis, or 25 percent of total eligible system costs. All solar energy and distributed generation systems must be covered by a three-year warranty.

Program Overview

Implementing Sector: State
Category: Financial Incentive
State: California
Incentive Type: Grant Program
Web Site:
Administrator: California Energy Commission
Start Date:
Eligible Renewable/Other Technologies:
  • Solar Water Heat
  • Combined Heat & Power
  • Fuel Cells using Non-Renewable Fuels
  • Solar Pool Heating
  • Fuel Cells using Renewable Fuels
Incentive Amount: Not funded for Fiscal Year 2002/03
Maximum Incentive: $750 for solar energy systems; $2,000 for distributed generation systems


Name: Melinda Merritt
Organization: California Energy Commission
Address: 1516 9th Street, MS45
Sacramento CA 95814
Phone: (916) 654-4536

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.