Workshop
SDCP hosted a workshop to describe the mechanics of the FIT program and the application process.
What is a Feed-In Tariff (FIT)?
A FIT program is an energy purchasing program from SDCP that allows you to sell energy from a small-scale, distributed renewable generating system within our service territory. The FIT program establishes standard, non-negotiable rules, contract terms, and base price for all eligible small-scale generating systems.
Under the FIT program, SDCP is only the buyer of electricity and does not develop, build, or own the generating systems.
It’s important to note that a Feed-In Tariff program is not the same as Net Energy Metering (NEM) program. If you wish to install solar on your home to offset your monthly electricity consumption, please take a look at our NEM program.
Program Capacity
The program has a total program capacity of 6 megawatts (MW).
Currently, all 6 MW of capacity are available. As SDCP executes FIT contracts, the available capacity will be updated.
Price
To help accomplish our goal of reducing emissions, we have set our FIT price to encourage renewable energy delivery during peak hours when emissions are the highest. Our price is based on the Time-of-Delivery.
Time Period
Hours
Price per MWh (kWh)
Premium Hours
19:00 – 00:00
(7:00 PM – Midnight)
(7:00 PM – Midnight)
$120/MWh ($0.12/kWh)
All Other Hours
All Other Hours
$60/MWh ($0.06/kWh)
Bonus Incentives
To help support local businesses and create positive local economic development benefits, SDCP will provide a bonus pricing incentive for the first five (5) years of the contract on top of the base price for projects that meet the following criteria:
Criteria:
Bonus Pricing Per MWh (kWh)
Local Business
+ $2.50/MWh ($0.0025/kWh)
Previously Developed Site
+ $2.50/MWh ($0.0025/kWh)
Sited within a Community of Concern
+ $2.50/MWh ($0.0025/kWh)
- Local Business: The applicant and/or prime contractor must have a place of business (i.e. possesses a business license) physically headquartered within a member community of SDCP, as such membership exists on the date of FIT Application submittal.
- Previously Developed Sites: Such sites are defined as areas that either contain or have contained structures or were used for parking, loading or storage related to a previous or existing land use other than agricultural grazing or crop production within the last 20 years.
- Sited within a Community of Concern: The Eligible Resource must be located entirely within a Disadvantaged Community, as defined by the California Office of Environmental Health Hazard Assessment, or within a very low to low access census tract found in the City of San Diego’s Climate Equity Index, or as the top 25% scoring areas within the City of Chula Vista’s Climate Equity Index at the time of FIT application submittal. The geographical eligibility of Communities of Concern may expand as SDCP member cities enact their own Climate Equity Index designated census tracts.
Inclusive and Sustainable Workforce
SDCP’s Board of Directors adopted the Inclusive and Sustainable Workforce Policy to further the goals of SDCP to demonstrate quantifiable economic benefits to the region including:
- Prevailing wage jobs and local workforce development
- support a stable, skilled, and trained workforce
- promote supplier and workforce diversity including returning veterans and those from communities of concern.
All contractors and subcontractors performing work on any SDCP FIT project are required to pay at least the prevailing rate of wages. Additionally, construction contractors or subcontractors are encouraged to utilize local businesses, local apprenticeship programs, fair compensation practices (including proper assignment of work to crafts that traditionally perform the work), and the use of a skilled and trained workforce.
FIT Contract
Each project will need to execute a non-negotiable Power Purchase Agreement (PPA). Applicants can select either ten (10), fifteen (15) or twenty (20) years as the delivery term.
View the FIT PPA template for the complete terms of the agreement.
Fees & Deposits
A $500 non-refundable application fee is due at the time of application submittal.
Additionally, applicants are required to pay three refundable deposits:
- Reservation Security Deposit of $5 per kilowatt (kW) of Proposed Generator Capacity is due at the time of FIT Application submittal.
- Development Security Deposit of $5 per kilowatt (kW) of Proposed Generator Capacity is due at the time of FIT PPA execution.
- Performance Security Deposit of $10 per kilowatt (kW) of Proposed Generator Capacity is due at the Commercial Operation Date.