On January 12, 2006, The California Public Utilities Commission (CPUC) established a budget for the California Solar Initiative (CSI) Research, Development, Demonstration and Deployment Program (RD&D) to help achieve the CSI's goal of installing three thousand megawatts of distributed solar by 2016. The CPUC's intent for RD&D is to "explore solar technologies and other distributed generation technologies that employ or could employ solar for power generation and storage or to offset natural gas usage, as well as market development strategies."
On August 21, 2006, the Legislature adopted the "Million Solar Roofs" bill (SB1) which directed the CPUC "to allocate not more than $50 million to research, development, and demonstration that explores as part of the CSI:
After issuing an RFP for program management in Spring 2008, the CPUC signed a contract with Itron in November. The project team is currently conducting industry and market studies to identify the highest priority research, development, and deployment opportunities. These findings will inform the first round of funding and lay the groundwork for a solar RD&D roadmap for California.
The overall goal of the RD&D funds is to help build a sustainable and self-supporting industry for customer-sited solar in California. This goal includes two key outcomes:
The funds will be used to fill critical needs or gaps in the market to facilitate greatly expanded market penetration of cost-effective solar applications.