Between September 2008 and September 2009, approximately 40 new solar programs have
been created in 19 states. Of these programs, 10 are state programs.
Approximately 16 programs in 14 states increased funding for solar programs over the past year. Thirteen of these programs are state programs; the others are utility or local government
programs. In total, eight programs in 12 states increased the incentive level for individual systems.
A handful of states did reduce program budgets or incentive levels. Typically, states or utilities adjusted the individual incentive level or cap instead of reducing the overall program budget. Incentive levels in 10 states were reduced, with six of the incentive reductions occurring at the state level. Colorado, Illinois and Vermont were the only three states that lowered overall
program budgets during the past year, with the reductions in program funding in Illinois and
Vermont resulting from a re-appropriation of public benefits funds to fill state budget gaps.
Performance Based Incentives (PBIs)
As the U.S. solar market matures, states and utilities have begun shifting away from simple
rebate programs for photovoltaics (PV) and towards production- or performance-based incentives (PBIs). 15 PBIs were created, and the caps or rates for seven PBIs changed.
There are 39 production-based incentives in 28 states, with 14 production incentives for solar (excluding feed-in tariffs), 11 feed-in tariffs (FITs), and 14 REC-purchase programs (through
which RECs are purchased separately from electricity). Most - but not all - PBIs involve the
transfer of RECs from the generator to the utility.
SOURCE: 2009 Annual Report of IREC

