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States Regulations

On May 18, CAISO approved its draft transmission plan that showcases a more proactive and strategic approach to transmission planning. The plan identifies 45 projects for system extension and upgrades over the next 10 years, with an estimated cost of US$7.3 billion. CAISO has designed the projects to support the over 40 GW of new resource development identified by the CPUC so the state can meet their clean energy goals. This year’s planning approach centers on identifying designated geographic zones that make economic sense for additional transmission, enabling deliverability and access to resource adequacy contracts.CAISO will give priority to interconnection queue requests located within these zones. CAISO affirms that the transmission projects enable critical resource development, such as 17 GW of solar across the state, as well as access to co-located storage projects and standalone storage closer to major load centers.

In late May 2023, the California Senate Budget Committee proposed a US$400 million investment in the Budget and Fiscal Review to bolster the newly formed community solar and storage program. Assembly Bill 2316 was passed last year, establishing the process for a community solar program. The CPUC is designing the program requirements and we expect additional guidance this summer. The funding is said to be a much-needed investment and will make California more competitive for securing funding from the ‘Solar for all’ US$7 billion federal fund.

In May, Southern California Edison (SCE) began testing a residential incentive program that aims to have 2,400 homes installed with batteries for a total of 12.2 MW. The New Home Energy Storage Pilot is meant to team batteries with Title 24’s building standards that mandate solar panels for new homes. The incentive would go directly to the building developer rather than the homeowner for the upfront cost for batteries paired with solar in SCE’s service territory. Other program requirements include the project meeting the same criteria outlined in California’s SGIP. For the homeowner, these systems would be classified under NEM 3.0, which is much more beneficial for solar paired with storage. Additionally, the homeowner can immediately use the backup power source and have the cost rolled into regular house payments.

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