Update 4.25.22

Hi Contractors,

We wanted to provide an update on the budget status in San Diego Gas & Electric (SDG&E) territory since we have received a much higher volume of applications in the past few weeks.

We are aware that there are likely enough jobs that have been sold in SDG&E territory that will exhaust all incentive funding in the territory. As we noted in a previous message on April 20th, all sales of TECH incentivized heat pump measures should immediately cease in SDG&E territory to prevent committing incentives that cannot be paid. Any single-family jobs sold in SDG&E territory must be entered into the online system with the number of units, invoice numbers, and installation start dates provided by April 26th end of day. These applications do not need to be submitted, but previously entered claims must also include the required information. Applications entered after April 26th and any applications that do not include number of units, invoice numbers, and installation start dates will be rejected.

The table below summarizes the current incentive budget. We have added a column to show all unsubmitted applications, which includes applications with future sales dates that may not be approved or paid. As you can see, these unsubmitted claims (“Total paid + In Process + Unsubmitted”) include full exhaustion of funds in SDG&E territory. Once we gather all application data tomorrow, we will notify contractors of remaining funding allowances and of any projects that have yet to be installed that will not be able to receive incentives.
  

 

 

Budget information is posted online at www.energy-solution.com/tech and updated on a daily basis. Lastly, we would like to clarify that the program changes announced on April 20th affect single-family incentives only and multifamily incentives will remain the same (excluding the SDG&E suspension). We appreciate your participation to date and cooperation with these program announcements.

  




Announcement 4.8.22

We are grateful for your enthusiastic participation in the TECH Clean California initiative. While we are thrilled with its success, we are equally dismayed that the San Diego Gas & Electric (SDG&E) territory is nearing its funding capacity. Therefore, we will have to suspend funding for Single-Family TECH incentives in the SDG&E territory.   

  

TECH funding is allocated by gas investor-owned utility territory and the funding for SDG&E territory is set at 6.77% of the total budget by law. TECH is funded from cap-and-trade dollars, which requires strict funding allocations for each of the gas investor-owned utilities. The table below shows the current allocation of funding for Single Family HPWH and HP HVAC and the total allocations for each Gas IOU territory.  


As of 4/8/22

Total TECH incentive paid ($)

Total paid + in process ($)

Allocated Incentive Budget ($)

Budget Remaining

% of Budget Remaining

Single Family HPWH & HP HVAC

5,717,685 

 7,609,250 

 28,000,000 

 20,390,750 

72.8%

Southern California Gas Territory

1,245,831 

 3,404,919 

 13,792,800 

 10,387,881 

75.3%

Pacific Gas & Electric Territory

817,412 

 2,563,166 

 16,936,000 

 14,372,834 

84.9%

San Diego Gas & Electric Territory

7,592 

 1,627,554 

 2,708,000 

 1,080,446 

39.9%

Southwest Gas Territory

3,646,850 

 13,610 

 456,400 

 442,790 

97.0%

 

In only four months the allocated funds for SDG&E territory are over 50% exhausted. Incentives are available on a first come first serve basis and this table will be published to our website https://energy-solution.com/tech/ (see the Budget section at the bottom of the page) and will be updated on a daily basis. We calculated the trajectory and install rate in this territory and determined that, at the current rate, funds will run out by June of 2022. Therefore, regardless of incentives spent to date we will be suspending incentive applications on May 31, 2022.

 

We are working on obtaining additional funding and hope to be able to re-open incentives in the future. In the meantime, GoGreen Financing is available which provides a reduced interest rates for homeowners.

 

Key Figures:  

  • Incentives are available on a first come first serve basis, and remaining budget amounts will be posted online at https://energy-solution.com/tech/ and updated on a daily basis. 
  • Regardless of incentives spent to date, all HPWH and HP HVAC incentives will suspend in SDG&E territory on May 31, 2022 
  • All projects must be SUBMITTED in the Iris system by May 31, 2022



FAQ


 
QuestionAnswer
Will I get paid if I submit a claim in SD territory before 5/31?Incentives are available on a first come, first serve basis depending on available funding. It is possible that we will run out of funds prior 5/31.  
What if I complete a project before 5/31 but am not able to submit a claim until after that [ex. because of Source ID code error]?Source ID issue is fixed. 
I do installations in SD, should I even participate in TECH?There are other programs coming in the future, getting onboarded and trained through TECH will speed up being able to participate in future programs.
Should I still offer TECH incentives to my SD customers?We strongly suggest that contractors cease selling incentives in SD due to HERS completion lag times. 
How should I communicate this change to my customers?For customers who already signed contracts, the installation and HERS testing must be completed by May 31. Customers who do not have signed contracts should be told that incentives have ended due to customer enthusiasm for heat pumps exhausting the funding
My distributor said that TECH funds are running out, is this true?This is true. San Diego had 2.7 million in single fmaily incentive funds and those are almost gone. 
What about other incentives in SD territory, should I be worried about those?We do not have information on other incentives that may be offered in San Diego. 
Can we shift funds from multi-family to single family?There are not additional funds in multi-family, all funds in SD are close to being exhausted. 
The SDG&E memo talks about the SDG&E Territory, but does not differentiate between those customers who receive gas & electric service from SDG&E versus those who receive electricity from SDG&E and gas from SoCal Gas. I have a VM from a contractor who says that "All of Orange County that I'm in is SoCal Gas" ...It may need to be clarified that if the customer received gas service from SoCalGas, that they are still eligible.The closure of incentives applies to SDG&E gas customers and customers in SDG&E gas service regions. Customers with gas services from SoCalGas are not impacted.