The Municipal Services Committee on Tuesday reviewed Pasadena Water and Power’s proposal for a $2.65 million solar and energy storage rebate program designed to help residents and businesses offset the cost of installing renewable energy systems.
The program would be funded through the City’s Public Benefit Fund and would support both residential and commercial installations while offering enhanced incentives for low-income households.
“Solar and battery programs have the potential to deliver real benefits for residents, but we also have to make sure those opportunities are reaching more than just a small segment of homeowners. I’m interested in continuing to expand access so more Pasadena households can participate in the clean energy future,” said Municipal Services Committee Chair Justin Jones.
The program is intended to boost local renewable power production while improving grid flexibility and laying the groundwork for future programs such as virtual power plants and demand-response systems.
Under the proposal, homeowners installing rooftop solar systems would be eligible for a base rebate of 60 cents per watt, while customers enrolled in the City’s low-income assistance programs could receive up to $1 per watt.
The residential solar component would include $800,000 for standard rebates and $200,000 reserved for low-income households.
City staff estimate the residential solar incentives could support roughly 1.5 megawatts of new solar capacity across about 220 homes, with average rebates ranging from approximately $4,200 to $7,000 depending on eligibility.
Businesses would also be eligible for incentives under the proposal. Commercial solar projects would receive 40 cents per watt, with rebates capped at $80,000 per meter and a total program budget of $800,000.
If fully utilized, the commercial solar incentives could support approximately two megawatts of new solar capacity across about 30 businesses, according to Pasadena Water and Power staff.
The proposal also includes rebates for battery storage systems, which allow customers to store electricity generated by solar panels or draw stored power during peak demand periods.
For residential systems, Pasadena Water and Power proposes a rebate of $350 per kilowatt-hour of storage capacity, with an enhanced incentive of $550 per kilowatt-hour for customers enrolled in low-income assistance or medical baseline programs.
The residential battery storage portion would be funded with $323,000 for standard rebates and $57,000 reserved for low-income households, potentially supporting about one megawatt-hour of storage capacity across roughly 75 homes.
Commercial battery installations would receive $225 per kilowatt-hour for the first 200 kilowatt-hours of storage and $100 per kilowatt-hour thereafter, with a maximum rebate of $80,000 per meter. The City has allocated $470,000 for the commercial battery storage program, which could support about two megawatt-hours of new storage capacity across 20 projects.
Officials said encouraging the adoption of battery systems could eventually allow the City to aggregate customer-owned storage into “virtual power plants,” helping stabilize the electric grid during periods of high demand.
The rebate programs would apply to newly installed systems or expansions of existing installations and must be installed by licensed contractors.
The program is expected to return to the City Council for further consideration before it can be implemented.
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