Photovoltaic Systems Design and Installation Project

PHOTOVOLTAIC SYSTEMS DESIGN AND INSTALLATION PROJECT

The City Council approved the Photovoltaic Systems Design and Installation (PV) project as part of the Fiscal Year (FY) 24-25 budget. Applications for Net Energy Metering (NEM) 2.0 interconnection were successfully submitted to PG&E for five facilities in Cupertino. In December 2024, City Council approved proceeding to Design and Construction for the three sites listed below:

• Community Hall
• Quinlan Community Center
• Cupertino Sports Center

The NEM program, overseen by the California Public Utilities Commission, offers utility bill credits for excess clean energy generated on-site over a 20-year period. In 2023, PG&E announced a reduction in rates for electricity generated by PV systems (NEM 3) but allowed for grandfathering the more favorable NEM 2.0 rates, provided that interconnection applications were submitted and systems became operational by 2026.

To qualify for NEM 2.0 incentives, projects must be completed by April 15, 2026. NEM 2.0 offers 75-80% more compensation for electricity fed back into the grid, compared to the current NEM 3 rates. The anticipated savings in utility costs are estimated at $500,000 annually, totally $26.5 million over a 30-year period.

The project team prepared a Conceptual Design Report that includes technical and cost analysis data for each site.The Conceptual Design/Bridging Documents PDF is linked below, in the "Project Documents" tab.

Questions regarding the project can be directed to Susan Michael, CIP Manager, at SusanM@cupertino.gov.