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Pasadena Water & Power

  • PSI Rebate Details

    There are two types of rebate incentives: the Expected Performance Based Buydown ("EPBB") and the Performance Based Incentive ("PBI"), which differ mainly in payment schedule and method of rebate calculation, as described in the table below:


    PSI Incentive Type 

    Rebate Rates1
    (by customer type)

    Payment Schedule 

    PV System Size

    Expected Performance Based Buydown (EPBB)2  

    $0.30/watt - Residential

    $0.30/watt - Commercial & all PPAs (except residential leases)

    $0.60/watt - Government and Non-profits3  

    $1.20/watt - Income-Qualified / Affordable Housing  

    One lump sum payment after installation and inspection approval; based on estimated PV system AC capacity.2 

    1 kW-CEC-AC


    100 kW-CEC-AC

    Performance Based Incentive ("PBI") 

    $0.096/kWh - Residential

    $0.096/kWh - Commercial and all PPAs (except residential leases)

    $0.192/kWh - Government and Non-profits3 

    $0.384/kWh - Income-Qualified / Affordable Housing 

    Two annual payments for first two years after installation and inspection approval; based on actual metered kWh output. 

    100 kW-CEC-AC
    1,000 kW-CEC-AC

    1. Rebate rates are based on CEC-AC Watts. Rates may be reduced at any time prior to application approval.  
    2. For the EPBB incentive, PV system wattage is based on system performance, i.e., CEC-AC Watts (not capacity), which is influenced by factors such as shading, orientation, system size, location and angle.  
    3. Residential solar leases and PPA's qualify for residential PSI rebates under the applicable rebate category. Third-party ownerships (e.g., leases or PPA's) must use the commercial rate.


    PSI Rebate Application Instructions 

    To ensure you receive the correct incentive, follow the detailed step-by-step instructions found on the PSI Application Instructions page.


    Perfomance-Based Incentive ("PBI") Option

    Applicants with PV systems from 100 to 1000 kW CEC-AC are eligible for the PBI incentive, which is a flat cents-per-kWh payment based on actual metered energy output of solar power produced during each of the first two years of operation. Once the reservation is confirmed, the incentive rate will remain fixed during that 2-year payment period.

    PBI Payment Calculation:

    PBI Payment Amount = Annual measured output (kWh) x PBI Payment Rate

    Example: Commercial installation of a 200 kW CEC-AC system:   


    Metered Output (kWh) 

    Current PBI Rate 




    $ 0.096




    $ 0.096



    Total PBI Payment: 




    Expected Performance Based Buydown ("EPBB") Option

    Solar systems up to 100 kW CEC-AC must choose the EPBB payment option, which is a one-time payment at the applicable EPBB payment rate (by customer type) after the installation has been completed and approved.

    EPBB Payment Calculation:

    EPBB Payment Amount = CEC-AC Rating x Design Factor x EPBB Payment Rate


    • Residential customer installing a 5 kW CEC-AC system:
    • EPBB Payment Amount = 5,000 Watts CEC-AC x Design Factor 95% x $0.30/Watt
    • EPBB Payment Amount = $1,425.00

    "CEC-AC Rating" is the California Energy Commission's standard for determining a solar module's AC wattage. It is based on system performance, not capacity, which is influenced by factors such as shading, orientation, system size, location and tilt.

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    If you have any questions regarding the above options or the Pasadena Solar Initiative in general, please call the Answerline at 626-744-6970 or write to solar@cityofpasadena.net.  

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