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California Energy Commission
New Solar Homes Partnership (NSHP)
Affordable Housing and Projects in Disadvantaged Communities for
the NSHP Guidebook, 10th Edition
The NSHP Guidebook, 10th Edition updates program rules and
incentive rates for affordable housing project types. This handout
provides an overview of the new rules and the impact on projects
with existing applications.
Updates Affecting Affordable Housing Projects – All Applications
The NSHP program offers two incentive structures: market-rate and affordable housing. The affordable
housing incentive structure offers higher rates for qualifying photovoltaic (PV) systems serving
developments with eligible regulatory agreements. Table 1 shows the updated remaining affordable housing
incentive levels and megawatt (MW) targets as modified in the NSHP Guidebook, 10th Edition. 1 The
updated incentive table and eligibility items below are effective immediately, including for existing
reservations, and do not require switching to the NSHP Guidebook, 10th Edition.
Table 1: Affordable Housing Incentive Structure
Common Area and Code-Compliant
Dwelling Unit Incentive*
(per watt, reference system)
Tier I and Tier II Dwelling Unit
Incentive*
(per watt, reference system)
$1.50
$1.85
$1.40
$1.75
$1.30
$1.65
*See “Common Area Systems” section below for additional requirements.
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For payment claim documentation, the allowable timeframe within which the solar permit must be
applied for after the Certificate of Occupancy is issued has been extended to 120 days.
Updates Building Energy Efficiency Standards (Energy Standards) requirements for projects with
payment claims received or reviewed after March 8, 2017 as follows:
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Reserved Volume Target
(MW-AC)
Removes 30 percent space cooling requirement to achieve the Tier II energy efficiency level
for projects using the 2013 Energy Standards.
Affordable housing incentive level availability varies based on the Energy Standards under which the project was permitted, as
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well as the portion of the project served by the PV system. See the NSHP Guidebook, 10 Edition for additional information.
Qualifying for the Affordable Housing Incentive Levels
PV systems serving residential units and/or common areas can qualify for increased incentive rates.
Residential Units
PV systems serving residential units in an affordable housing project with a qualifying regulatory agreement
may be eligible for the affordable housing rates, regardless of the system owner’s tax status. Residential
units that are subject to the restrictions of the regulatory agreement (“restricted”) receive the increased rate;
units that are not subject to the agreement (“unrestricted”) will receive the market-rate incentive rate.
Exception: A manager’s unit is considered “common area” for the purposes of NSHP.
Common Areas
A PV system serving a common area load in a qualifying affordable housing project may receive a higher
incentive rate if at least 80 percent of the residential units are restricted. These common area systems
receive the same incentive rate as a code-compliant restricted residential unit. Common area systems
serving projects in which less than 80 percent of the residential units are restricted are eligible for the
market-rate incentive.
Impact on Existing Projects
The affordable housing incentive rates are retroactively available for reserved projects on a first-come, firstserve basis. If an applicant’s project was reserved under market-rate but now qualifies for the affordable
housing rate, the applicant may request to switch the project to the current affordable housing incentive
level. Requests will be processed in the order they are received and additional funds will be encumbered at
the level in effect at the time of processing. Since the affordable housing levels will continue to drop,
applicants may wish to contact the Energy Commission as soon as possible. Staff will also attempt to
identify whether a project qualifies for the affordable housing rate under the NSHP Guidebook, 10th Edition
during the payment claim review, however the Energy Commission cannot guarantee that these projects will
be identified and receive the affordable housing rate.
Applicant’s Role: Notify Energy Commission (email [email protected]) of your request to switch
a reserved project to the affordable housing incentive structure. Applicants may also provide this
information on the NSHP-2 when submitting a payment claim; however, the request will not be processed
until the payment claim is reviewed. The authorized representative may also contact the Energy
Commission on the applicant’s behalf.
Incentive Bonus for Affordable Housing Projects in Disadvantaged Communities
The NSHP Guidebook, 10th Edition introduces an additional incentive for eligible affordable housing
residential unit projects located in CalEPA-designated disadvantaged communities (DACs) based on the
CalEnviroScreen tool. 2 The bonus is equal to twenty percent of the incentive, up to $500, per system. For
projects that are virtual net energy metered, the bonus will be calculated per unit served (up to $500/unit).
The bonus is not available for systems that serve common areas.
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Disadvantaged communities are defined as scoring in or above the 75 percentile in CalEnviroScreen. The CalEnviroScreen tool
can be accessed at https://oehha.ca.gov/calenviroscreen/report/calenviroscreen-30
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When submitting an affordable housing reservation application, applicants will indicate on the NSHP-1
whether the project is located in a DAC and provide either the project census tract number(s) or a printout
from CalEnviroScreen confirming this information, if available. The Energy Commission will verify this
information prior to approving the payment claim.
Impact on Existing Projects
Applicants with existing affordable housing reservations located in a DAC may contact the Energy
Commission to request the bonus. You should provide the census tract number(s) in which the project is
located or a printout from CalEnviroScreen confirming its location in a DAC. Applicants may also notify the
Energy Commission on the NSHP-2 form when submitting for payment. The Energy Commission will not
verify whether a project qualifies for the DAC bonus unless notified by the applicant.
NSHP Guidebook, 10th Edition Changes Applied to my Project by Request
You must request to have your project subject to the NSHP Guidebook, 10th Edition to receive the following
streamlining benefits:
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Flexible Installation (FI) Incentive Calculation: Use of the FI Calculator to determine project
incentive. This tool streamlines the data entry required to calculate incentives.
o The FI-1 form along with the associated .huf input file must be submitted in lieu of the PV-1
form and .her input file. Only portions of the PV system installed in the azimuth range from
90-280 degrees will be eligible to receive incentives.
Note that this is not a comprehensive list of all changes in NSHP Guidebook, 10th Edition, but only those
limited to NSHP Guidebook, 10th Edition projects. It is important that the applicant is aware of all changes
prior to requesting their project to be subject to this Guidebook.
How to Switch your Project to the NSHP Guidebook, 10th Edition
If you wish to have your existing project subject to the NSHP Guidebook, 10th Edition rules, you must submit
a written request to the Energy Commission that includes:
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Project name and ID number
FI-1 form & associated .huf input file
List of applicable sites (if payments
have already been approved)
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Acknowledgement that the applicant
would like to switch the project to the
NSHP Guidebook, 10th Edition and
agrees to all stated requirements
The written request should be submitted to the Energy Commission prior to the project finishing the NSHP
program and/or the reservation expiration, and may cover any sites with the project that have not yet been
approved for final payment. The reserved funding for the project will not change upon switching to NSHP
Guidebook, 10th Edition, but the FI calculator will be used to determine the final incentive.
Who Makes the Request?
The request should be made by the applicant; however, the applicant’s designated authorized
representative may also make the request on the applicant’s behalf. Requests may be mailed to the Energy
Commission or emailed to [email protected].
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