California Governor Arnold Schwarzenegger (image from sterlingpr on Flickr)
This week, solar energy is shining a bit more brightly in California. Two solar bills were signed by Governor Arnold Schwarzenegger, which will boost incentives for installing solar power systems.
First, the California Solar Surplus Act of 2009 (AB 920), requires utilities to pay consumers for “excess” solar electricity generated beyond their individual needs. This corrects the net metering law that many thought to be unfair, which previously permitted utilities to take in surplus energy without paying for it.
Under the new law, the California Public Utilities Commission will set rates for payments by utilities to customers for solar electricity that is fed back into the grid. Estimates are that the rate will be about 1 1/2 times market price.
The Environment California website notes:
“The road to a million solar roofs, however, is long. While the state saw tremendous growth in solar last year, California has to go from today’s 50,000 solar roofs to 1,000,000 by 2016. To achieve this feat, California must remove all barriers for consumers wanting to invest in solar energy and more deeply penetrate the consumer driven market for solar power.”
The second solar bill signed by Gov. Schwarzenegger, Senate Bill 32, establishes a “feed-in” tariff, which mandates utilities to buy solar-generated electricity at a set rate over 20 years. The legislation is similar to European laws, and is hoped to spur additional development of PV solar panel systems across the rooftops, parking lots and other sunny locations.
According to a MarketWatch article:
The proposal seeks to expand the market by requiring California utilities to buy power from solar-panel generators of 1.5-3.0 megawatts in size, at set rates above what the utilities would pay for wholesale power from conventional sources.
Some solar companies said the bill’s pricing scheme would create a feed-in tariff of about 15 to 17 cents a kilowatt-hour, which they said wouldn’t be high enough to spur significant investment. But others said the program would create opportunities for lower-cost projects for which there isn’t currently a market.
For more on the Million Solar Roofs program in California:
Getting closer to a million solar roofs in California (image from Jeremy Levine Design on Flickr)
But that’s not all the good solar news! Gov. Schwarzenegger also announced a memorandum of understanding with the Department of Interior that should speed up siting of solar energy projects in the state. Working with the federal government, California will develop maps that identify the best areas for renewable energy development, considering a number of factors.
The new effort is intended to help the state reach its goal of generating 1/3 of its power from renewable sources by 2020.
California is just one of several states that is adopting new solar legislation to help continue the push towards renewable energy development. With federal tax credits and other incentives part of the stimulus package, state laws provide additional encouragement for homeowners and small businesses to go solar.
Tags: california solar surplus act, feed in tariff, governor schwarzenegger, million solar roofs, solar bills, solar power systems
October 13th, 2009 at 7:17 pm
Losing the profits for excess energy, I believe, is the main reason many Californians are reluctant to invest in solar energy. Receiving payment for unused solar power will help return the initial investment more quickly and attract more solar energy buyers. Thanks for the article!