California Solar Rebates
The California Solar Initiative
California has a reputation for being one of the most innovative states and when it comes to Solar Power things are no different. In 2007 Governor Arnold Schwarzenegger launched the Go Solar campaign. The goal of this campaign was to install 3,000 Mw of solar power generating capacity within ten years. In support of this, the California Public Utilities Commission started launched the California Solar Initiative (CSI). Here are some of the results the CSI has achieved to date:
- The State of California had installed 280 MW of grid-tied photovoltaic (PV) capacity statewide by the end of 2007. This includes 81 MW installed in 2007.
- 59.4 MW of new solar PV installations were installed in the first six months of 2008.
- The 58.4 MW of solar installed in the first six months of 2008 is equal the amount of solar PV systems installed in all of 2006! We are getting better.
- If the trend continues, the CSI program will install more than 100 MW in 2008.
- In the second quarter of 2008, there were 1,68 new applications for received for the CSI program, representing 22.5 MW of new solar PV generating capacity.
- Residential applications make up the lion's share of applications...over 90%, while non-residential applications account for the majority of capacity within the applicant pool...81% or 201.6 MW
- The good news - Total demand in the CSI program over the first 18 months is on target to meet the program's stated 10-year goal of 1,750 MW
The results being generated by the CSI are impressive, and if trends continue we should be able to add some impressive solar electric generation to the State of California's energy mix. This problem however, is that trends rarely go on in the same manner forever. There are some problems starting to show in the program:
- The rate at which new applications are being received into the program is decreasing, although the time period being measured is short and therefore it is impossible to tell if this trend will last or not. The California economy has going through some tough times in 2008 and this has no doubt affected home owners willingness to invest in solar power installations.
- Dropouts form the program have increased in the recent quarter, although this may be due to the fact that applicants have 12 months to complete installation and the first large group of projects that failed to complete installation dropped out in this quarter.
- The is some doubt as to whether the Federal Investment Tax Credit (ITC) will be renewed beyond the December 31 deadline. This tax credit is essential to the viability of several large solar projects.
- The housing and credit markets have been struggling during the first half of 2008, and California is one of the hardest hit areas. Problems in these markets reduce the amount of capital available for homes and businesses to invest in solar power systems.
- Incentive levels have been dropping as demand for the systems has grown. This was intentionally built into the program because it was believed that the increased demand for solar power systems would cause efficiencies to be realized, making lower incentive levels still be economically attractive. TH
- his has not been the case however. High worldwide demand for solar PV systems has kept the supply and cost of crystalline silicon panels nearly steady. Manufacturers have not been able to add capacity at a rate sufficient to keep up with the demand.
If you are a homeowner in California you should seriously consider installing solar power systems into your home. If you own a business this makes sense as well. There are a variety of calculators available to help you determine if solar makes sense to you and how soon you will recoup your investment. Please check out the links below for specific information.
Online Resources
California Incentives for Renewables and Efficiencies - This website has information on all the incentive and rebate programs available for installing renewable energy systems and making energy efficiency improvements. Covers State and Local incentives and also provides rules and regulations that need to be followed.
Go Solar - Your one-stop shop for California's consumer rebates and incentives related to solar power.
Federal Incentives for Renewables and Efficiencies - Information on Federal programs that make renewable energy more affordable.
Solar Calculators and decision making tools - Here you'll find resources to help you decide whether or not solar power makes sense for your particular situation. Knowledge is power.