$3.2 Billion Solar Roofs Program Proposed For California
3,000 MW in 11 Years Could Make California World Leader in Solar Power
environmentcalifornia.org
SAN FRANCISCO—The California Public Utilities Commission (PUC) officially unveiled its version of the Million Solar Roofs program, called the California Solar Initiative, proposing an 11-year, $3.2 billion incentive program to install 3,000 MW of solar on a million homes, businesses, farms, schools and municipal buildings. The program, if approved in mid-January by the 5-member Public Utilities Commission, will be the nation’s largest solar power investment and the first-ever program designed to make solar power mainstream and affordable, without aid of subsidies, within a decade.
“With this program, California can finally get on track to becoming the world solar power leader,” said Bernadette Del Chiaro, clean energy advocate for Environment California, a nonprofit, nonpartisan environmental advocacy group. “Given California’s abundant sunshine and growing economy, this program has the potential to make California the Saudi Arabia of solar power.”
The California Solar Initiative proposes a $3.2 billion pot of money without rate increases for most customers. The money would come from $350 million in existing funds already earmarked for solar power and an additional surcharge –1/8th a penny per kilowatt hour – or 60¢ on the average residential monthly electric bill over eleven years. According to the proposal, this additional surcharge will not impact rates because the Rate Reduction Bonds authorized during California’s electric restructuring law will expire in 2007 leaving “additional headroom in utility rates.”
According to a staff report prepared by the PUC last summer, this $2.9 billion investment in solar could save California ratepayers an estimated $10 billion from a reduced need to build two dozen peaking power plants or to purchase expensive electricity during peak summer hours.
“Given this high energy bills and the urgent need to reduce the state’s reliance on imported fossil fuels, this landmark solar initiative is exactly what California’s economy and environment need,” added Del Chiaro who’s organization has spent the past six months talking directly with more than 250,000 Californians about solar power. “Poll after poll show that these kinds of forward-thinking clean energy solutions are what the majority of California voters are demanding.”
Other benefits of investing in solar power include cleaner air and more jobs. For every solar roof, at least one ton of global warming pollution is reduced. In addition, for every megawatt of solar power installed, up to 7 jobs are created, a 7-fold increase over the number of jobs created from building the equivalent capacity in natural gas power plants.
Today’s proposal comes at the request of Governor Schwarzenegger and mirrors the bulk of the Governor-backed Million Solar Roofs bill (SB 1), which was also broadly support by the state Legislature. The other policy elements contained in SB 1, such as net metering and making solar panels a standard option on new homes, will require legislative approval in 2006 to support the California Solar Initiative unveiled by the PUC today.
“After three years of working to pass this kind of far reaching solar policy, this proposal is a breath of fresh air,” added Del Chiaro. “Now, California will mean business when it comes to making solar power mainstream and affordable for all.”
The PUC’s 11-year solar proposal is expected to be voted on by PUC in mid-January, after a 30 day public comment period initiated today. If adopted, the program is likely to go into effect by the start of 2007. In the meantime, this Thursday, December 15th, the PUC is expected to vote on the first stage of the California Solar Initiative, an interim program to triple the amount of money available in 2006 for solar on businesses and municipal buildings, from the current $50-100 million level to $300 million. In addition, $58 million remains available for homeowners and small businesses to invest in solar panels via the California Energy Commission’s rebate program in 2006.
MAJOR ELEMENTS OF PROPOSED CALIFORNIA SOLAR INITIATIVE
* Total of $2.9 billion over 11 years for consumer rebates
* All small-scale solar technologies will be eligible: i.e. photovoltaics, thermal, hot water, etc.
* Rebate starts at $2.80/watt and declines 10% per year to $0.25/watt in 2016.
* Creation of $2.9 billion fund will come from existing program as well as a new surcharge of .002 - .009 cents per kilowatt hour. The PUC expects these additional costs to be absorbed in current rates without any increase to monthly bills.
* Low-income ratepayers will not pay into the fund at all.
* 10% of the fund will be set aside for low-income and affordable housing projects.
* Additional energy efficiency gains will be required for most solar installations.
* The program will be administered by the PUC with administration of a rebate program specifically earmarked for new construction run by the California Energy Commission. |
