California Launches $2.2 billion Solar Electric Program
Effective the first day of 2007, the California investor-owned utilities will buy down the cost of residential and commercial solar power systems in the first phase of a $2.2 billion program to install solar on one million rooftops over the next 10 years.
The California Public Utilities Commission has ordered the state’s three major electric utilities, Pacific Gas & Electric, Southern California Edison and San Diego Gas & Electric (Sempra Energy) to buy down the cost of solar electric (photovoltaic, or PV) systems by a total of $2.2 billion. Incentive payments start this year at $2,500 per kilowatt of power for most residential and small commercial (under 100 kW) systems, about 30% to 40% of the initial cost. Full details of the PUC order are online. Please note that the 30% federal tax credit for solar PV is NET of the state’s incentives, so if a PV system costs $7500 per kW, you can take the federal 30% tax credit only on $5,000 of that amount ($7,500 minus the utilities’ $2,500 payment). Please also note that there are a number of large municipal electric utilities not covered by the PUC program that may have their own solar electric incentive programs, including Los Angeles, Sacramento, Burbank, Glendale, Pasadena, Palo Alto, etc.
Posted by (JavaScript must be enabled to view this email address) on 01/04/2007 at 11:40 AM
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