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Renewable Energy Advantage: Incentive Structure


PSE's Renewable Energy Advantage Program (REAP) is based on WAC 458-20-273, which provides annual incentive payments, using a base of 15¢ per kilowatt hour (kWh) generated by an eligible system.


Incentive payment structure

The underlined component in the below table is the driver of the Payment Factor.
 
Customer-generated Power Base rate Factor Price per kWh
Solar modules and inverter manufactured in Washington state $0.15 3.6 $0.54
Solar modules manufactured in Washington state $0.15 2.4 $0.36
Solar or wind generating equipment with an inverter manufactured in Washington state $0.15 1.2 $0.18
Anaerobic digester or other solar equipment without components manufactured in Washington state $0.15 1.0 $0.15
Wind generator equipped with blades manufactured in Washington state $0.15 1.0 $0.15
All other electricity produced by wind $0.15 0.8 $0.12
   
Incentive payments will be made once annually and are computed using the rate due, from the above table, multiplied by the total kWh generated during the payment period. The payment period is from July 1 of one year through June 30 of the next year.

Hybrid systems, such as a combination of solar and wind, will be paid at the lowest rate multiplier, unless each distinct part of the system is separately metered.

If a Customer Generator adds a new portion to the existing system (For instance, a new 1 kW array of solar panels manufactured in Washington), the lower payment factor will apply, unless the new portion of the system is separately metered.

There are a significant number of variables associated with the installation of a solar, wind or digester system, which affect the kWh generation of the system. Systems rarely have the same performance, even when they are installed on similar houses in the same neighborhood.


Payment examples

For a solar photovoltaic system, with a capacity of 1.5 kW, where the inverter is manufactured in Washington State, the annual rebate may look like this:

  • Annual kWh generated: 1,500 (assuming system has been installed and generating for a complete year)
  • Base annual incentive payment: $225.00 (15¢ X 1,500)
  • Rate multiplier: 1.2 times base rate (for inverter manufactured in WA)
  • Total annual incentive payment: $270.00 (18¢ x 1,500)

A PSE-owned production meter (in addition to the system's net meter) is also required to provide an accurate measurement of the electricity generated by the customer's system. Production meter installation fees will apply.

The incentive payment will be calculated from the production meter's reading on an annual basis. PSE will also provide generation data, payment eligibility and payments made information to the applicable state agencies on a regular basis.