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Central Coast Community Energy (3CE) Policy Board
April 20, 2026

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Presentation
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April 20, 2026
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Central Coast Community Energy (3CE) Policy Board
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Policy Board of Directors
April 20, 2026

April 20, 2026
ITEM 1
Receive an update on the Residential Battery Rebate Program (RBRP) and provide staff direction to close the RBRP and transition to a Virtual Power Plant (VPP) program or, alternatively, to allocate an additional $3.7 million toward the RBRP

RBRP Program Goals – Why Batteries Matter
Maximize System Wide Benefits
Program adoption drives benefits for all 3CE customers.

Support NBT Transition
Incentivize the shift to Net Billing Tariff & time-of-use management.

Enable Load Shifting
Shift energy use away from costly, high-emission peak hours (4–9 PM).

Lay VPP Foundation
Grow the base of grid-connected assets for coordinated future virtual power plant dispatch.

Participation Overview
Participating Installers by County

Achieved Majority of Program Goals

7.3 MWh Load Shifted Daily
Enable Load Shifting
Lay VPP Foundation
Support NBT Transition
Maximize System Wide Benefits

Updating Cost-Benefit Analysis
Customer Benefit (avg rebate)
~$7,000
Projected value to 3CE (original)
$2,062
Projected value to 3CE (current)
$1,089
RA value (original)
$2,682
RA value (current)
$1,758
CEC RA obligation reduction?
Not yet recognized
Enable Load Shifting
Lay VPP Foundation
Support NBT Transition
Maximize System Wide Benefits

Where We Stand Today
+ $2 M PAID
$3.7 M QUEUE
517 PARTICIPANTS
RBRP FY 2025-26

Elimination of Federal Tax Credits
Front End Outreach with Solar Installers
Strong Customer Participation, Independent of Paid Advertising How We Got Here

3CE Application Terms & Conditions
“Submittal of this Application does not commit 3CE to any financial obligation…” “…The Program is on a first-come, first served basis until funding is depleted.” “3CE reserves the right to discontinue the Program at any time for any or no reason and remove all available, non-reserved funds.” “3CE reserves the right to change the requirements and/or due dates”

BEFORE PAUSE:

Automated email sent to 59 contractors
Website updated
Staff called top 10 installers
AFTER PAUSE:

Automated email sent to 62 contractors
Website updated
Staff called top 10 installers
Staff have emailed and/or called over 40 customers.

Customer and Installer Outreach

Looking Ahead: Virtual Power Plant
2 VPP Incentive Structure:
$/kW Pay-for-Performance Model
Example CEC and CCA models exist for review
Comparable incentive amounts over life of battery as previous reduced rebate recommendation Will gather input from DERMS vendor and battery installers/manufacturers during design of VPP program

Limit total overrun to approximately $2M
Preserve Funding for other agency needs, including programs Promotes transition to VPP design which compensates customers for performance Provides future participation pathway for affected customers Recommended Program Approach for FY2025-26
Recommended Option: Direct Staff to enforce the RBRP Terms and Conditions as designed, close the RBRP, and encourage submitted applications to enroll in 3CE’s Virtual Power Plant.

Close Program – Prioritize Applications for VPP

Increase total overrun to approximately $5.7M
Reduce flexibility to meet other agency needs
Results in inconsistent application of agency terms and conditions Alternative 1 Program Approach for FY2025-26
Alternative Option 1: Direct Staff to close RBRP to new applications, allocate a maximum of $3.7M in additional funds to pay all currently submitted applications at present incentive levels, and direct future interested customers to enroll in 3CE’s Virtual Power Plant.

Process 3CE Queue – Fund Current Applications

Increase total overrun to approximately $5.7M
Reduces Flexibility to meet other agency needs
Reduced incentives may not meet customer expectations but marginally improve programs cost-effectiveness Alternative 2 Program Approach for FY2025-26
Recommended Option: Direct staff to allocate a maximum of $3.7M additional funds to pay current applications on a first-come, first serve basis at reduced incentive levels Reduced Rebate – First Come, First Serve with Cap

Recommended and Alternative Approaches

RECOMMENDED
Close Program
Direction:

Enforce RBRP Terms and Conditions as designed, close the RBRP, and encourage submitted applications to enroll in 3CE's Virtual Power Plant.

Key Impacts:

Limits total overrun to ~$2M
Preserves funding for other agency needs
Promotes transition to VPP design
Provides future VPP participation pathway for affected customers ALTERNATIVE 1
Process 3CE Queue
Direction:

Close RBRP to new applications, allocate a maximum of $3.7M in additional funds to pay all currently submitted applications at present incentive levels, and direct future interested customers to enroll in 3CE's Virtual Power Plant.

Key Impacts:

Increases total overrun to ~$5.7M
Reduces flexibility to meet other agency needs
Results in inconsistent application of agency terms and conditions ALTERNATIVE 2
Reduced Rebate – First Come, First Serve
Direction:

Allocate a maximum of $3.7M additional funds to pay current applications on a first-come, first-serve basis at reduced incentive levels.

Key Impacts:

Increases total overrun to ~$5.7M
Reduces flexibility to meet other agency needs
Reduced incentives may not meet customer expectations but marginally improve cost-effectiveness

Looking Ahead: Virtual Power Plant
2 Receive an update on the Residential Battery Rebate Program (RBRP) and provide staff direction to close the RBRP and transition to a Virtual Power Plant (VPP) program or, alternatively, to allocate an additional $3.7 million toward the RBRP

Where We Stand Today – Application Status & Spend

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