Community Solar Expansion Program

Frequently Asked Questions

General Questions

What is 2SHB 1814, Community Solar Expansion Program (CSEP)?

2SHB 1814 creates opportunities for broader community solar participation by low-income community members through a state incentive program.

Who can apply for this incentive?

Applicants must be a utility, non-profit, tribal housing authority, or other local housing authority.

What are projects that qualify for this incentive?

The solar energy system must provide continuing direct benefits to 2 or more low-income utility retail customers, or nonprofits that focus on providing services to low-income individuals.

Projects that align closely with the incentive program typically involve solar installations at sites whose primary mission is to serve low-income communities. Examples include low-income housing, food banks, and refugee centers.

Other successful models have included value-transfer approaches, such as school districts that redirect energy cost savings to support low-income student programs.

What are examples of projects that would not be a good fit?

A single-family residential home.
A project where the benefits do not support low-income community members.
A project where the benefits support a non-essential community service.
A project where low-income status cannot be ensured for 10 years after certification.
A project involving solar systems with multiple interconnection points.
A solar energy project that is less than 12kWdc.

What is the definition of ‘low-income’ according to legislation?

Low-income is defined in 2SHB 1814 as no higher than 80% of area median income (AMI) or 200% of the federal poverty level. See the full definition in RCW 19.405.020.

This incentive program requires that the solar energy system must directly benefit low-income community members. What are qualifying ‘direct benefits’?

Direct benefits are a reduction in energy bill costs, or other essential services for low-income individuals, which may include but are not exclusive to:

Housing
Food
Healthcare
K-12 Education
Transportation Services
Senior or Disability Services

Which costs are eligible under this incentive program?

This incentive program covers hardware, associated non-hardware costs, and installation costs integral and necessary for the generation and storage of electricity.

Which costs does this incentive program NOT cover?

The incentive does not cover structures or fixtures that are unnecessary for the generation and storage of electricity. Examples may include roofing or electrical upgrades.

What is the eligible incentive amount for a solar project?

The incentive amount for each project is proportional to the percentage of the solar system’s production that benefits low-income individuals.

The program offers incentives based on a target price of $2.25 per watt (W) for solar systems and $600 per kilowatt-hour (kWh) for battery storage. The WSU Energy Program may allow projects that cost more or less than the targeted installed costs based on a review of the project, submitted documents, and available data. Project cost evaluations may include costs associated with energy storage systems and electrical system improvements to permit grid-independent operation.

Example 1: A church installs a solar system and operates low-income food assistance programs five days a week, with church services the remaining two days. The church proposes directing the generated benefits towards their operating costs. In this case, 5/7 of the installation costs would be eligible for the incentive.
Example 2: A low-income housing authority installs a solar system on a housing complex where at least 70% of residents must meet the 80% area median income (AMI) threshold. The housing authority proposes directing the generated benefits as bill credits to all residents. In this case, the project would be eligible for an incentive covering 70% of the installation costs.
Example 3: A school district installs a solar system and implements a value-transfer model. Instead of using savings from reduced electricity bills for general expenses, the district redirects those funds to after-school programs for low-income students. This project would be eligible for an incentive covering 100% of the installation costs.

Must a project only benefit low-income participants?

No, but only the portion of the project that benefits the low-income participants can be incentivized. For example, if 60% of the system’s benefits are directed to low-income individuals, then 60% of the project’s installation costs would be eligible for the incentive.

Can an individual homeowner qualify for this incentive?

No. This is not an incentive for the typical, residential, roof-top solar participant.

Who can be an administrator?

Utility, non-profit, tribal housing authority, or local housing authority.

Is there incentive support for administrative costs?

Administrators may apply for an additional incentive associated with the reasonable administrative start-up of the project. The administrative incentive is in addition to the incentive covering project costs. The WSU Energy Program will require supporting documentation for administrative costs.

The incentive program can cover up to $20,000 for reasonable administrative costs associated with the start-up of the solar energy system. The WSU Energy Program will require supporting documentation for administrative fees.

Application Questions

When will the WSU Energy Program start accepting applications?

Beginning July 1, 2022. Precertification applications are accepted on an ongoing basis through June 30, 2033.

What is the process for applying?

The application process has three steps.

Step 1: Fill out the online inquiry form.
Step 2: After reviewing your inquiry and verifying the project aligns with the spirit of the legislation, the WSU Energy Program will reach out to you requesting additional documentation, as well as a site plan and an interconnection agreement or equivalent from your utility.
Step 3: If approved for pre-certification, you will have two years to complete construction of the project, with a one-year check-in on progress. At project completion and certification approval, the WSU Energy Program will request the serving utility to issue a one-time incentive payment within 60 days.

For more detailed information on the application process, see the Application Guidance page.

What documentation will be needed to verify that the installation, or a portion of the installation, is dedicated to low-income customers?

As part of the precertification process, you will submit a project narrative which describes the beneficiary, any program terms, methods, and/or intent.

What is the estimated turn-around time for approval of precertification?

We will respond within 30 days. You may be asked for additional information or documentation, if necessary.

Does pre-certification expire?

Pre-certification is valid for 24 months with a mandatory progress report within one year, submitted to the WSU Energy Program. A 6-month extension may be approved if significant progress on the solar installation can be demonstrated.

For how long are approved projects obligated to provide agreed-upon benefits to low-income beneficiaries?

A minimum of ten years.

Will the WSU Energy Program audit projects to verify that the benefits are indeed flowing to low-income recipients?

We trust that our clean energy partners will honor the intent of 2SHB 1814. However, at the time of project certification, a copy of an executed agreement on benefit determination and distribution must be provided. Project administrators are also obligated to provide, on an annual basis for ten years, information regarding subscriber benefits.

What do administrators need to report to the WSU Energy Program?

For 10 years after certification, the administrator is required to provide data to the WSU Energy Program. Data includes energy generated, the system benefits, and to whom.

System Questions