The solution was a staged incentive architecture that combined a site-adjusted bridge with payments tied directly to metered generation.

WorkedDid not

Payment basis

Actual metered output¹

Rated wattage or capital cost¹

Small-system transition

EPBB followed by PBI²

Upfront-only support¹

Site conditions

Orientation and tilt adjustments²

Ignoring site-specific output²

Program objective

Long-term performance¹

Short-term deployment counts¹

For larger systems, PBI made the payment formula depend on actual metered output rather than a capacity figure.¹ For smaller systems, EPBB provided a site-specific adjustment based on orientation and tilt, creating an intermediate structure before full PBI.²

The design also allowed owners whose systems outperformed the assumed production level, described by a capacity factor of 0.2, to receive up to 10% higher incentive.² That feature reinforced the broader logic: the incentive should be sensitive to delivered performance, while the transition path should remain understandable and usable.

California transitioned from upfront rebates to performancebased solar incentives