What's New: Next Steps For The Million Solar Roofs Campaign
On September 9, 2005, the California Assembly failed to pass the Million Solar Roofs bill. The bill, Senate Bill 1, remains in the state Assembly and can be reconsidered in January 2006, when the state legislature reconvenes for the second year of a two-year legislative session. Fortunately, SB 1 remains in tact in the California Assembly since it was never actually brought up for a vote. This means it can be voted on January 2006, when the legislature reconvenes for year two of a two-year session.
In addition, while the bulk of the Million Solar Roofs initiative requires legislation, the California Public Utilities Commission (PUC) can act independent of the state legislature to establish a multi-year rebate program. Under the leadership of PUC President Michael Peevey, the PUC is expected to begin establishing this program during the fall of 2005.
Ultimately, the key to establishing the nation’s biggest solar power program in California is for voters to continue to contact their state legislators and to also contact the Public Utilities Commission to encourage both efforts to continue to move forward in the months ahead.
Timeline Summary
November, 2005 – PUC expected to release a draft program to create a multi-year solar rebate program for homes and businesses. 30-day public comment period will begin.
January, 2006 – State Legislature reconvenes for year two of a 2-year session and may reconsider SB 1 within first few weeks of session.
February 22, 2006 – Deadline for new solar bill to be introduced (if SB 1 is not passed within first few weeks of session).
Who support's the Million
Solar Roofs bill in the state legislature?
Since 2003, the primary author of the Million Solar Roofs bill has been Senator Kevin Murray (D- Los Angeles) with the sponsorship of Environment California. During 2005, this exciting solar bill gained additional authors including Senator John Campbell ( R-Orange County) and Assemblymember Lloyd Levine (D-Van Nuys). Other co-authors of SB 1 included: Elaine Alquist (D-Santa Clara), Wesley Chesboro (D-Arcata), Denise Ducheny (D-San Diego), and Christine Kehoe (D-San Diego), Rudy Bermúdez, (D- LA/Orange County), Wilma Chan (D-Oakland), Rebecca Cohn (D-Santa Clara), Paul Koretz (D-West Hollywood), John Laird, (D- Santa Cruz), Mark Leno, (D-San Francisco), Sally Lieber (D-San Jose/Mountain View), , Joe Nation (D-Marin), Fran Pavley, (D-Agoura Hills), Lori Saldaña (D-San Diego), Lois Wolk (D-Davis), Leland Yee (D-San Francisco).
In addition, the Million
Solar Roofs bill, SB 1, has the support of more than 200 California groups and businesses. Click
here to see complete list. (PDF, updated 9/6/05)
What Does SB 1 Do?
SB 1 combines the incentives and standards needed to build half of all new homes with solar power and a million solar roofs by 2017, lowering the cost of solar panels and bringing clean, reliable energy to California.
Specifically, SB 1 would accomplish these goals in three main ways:
1) Require all builders of large single-family home developments offer solar power as an option for homebuyers. This would give homebuyers the opportunity to save money by incorporating the solar system during construction;
2) Provide homeowners and businesses a new, stable and secure rebate fund of up to $250 million per year statewide to reduce the upfront cost of solar power systems over the next ten years. The rebate would come from a 50 cent surcharge on the average electric bill and would exempt low-income ratepayers; and
3) Allow a million new solar system owners to capture excess solar electricity not used by their home or business through a credit on their monthly electric bills.
How Much Solar Power
Would Be Installed Each Year as a Result?
The goal of the Million Solar Roofs Bill is to build half of all new homes with solar and to install a million solar roofs within the coming decade. Together, these goals would bring 3,000 megawatts of solar energy over the next 10-15 years. This is roughly the equivalent of 6 large power plants and enough electricity to provide for the peak energy needs of 750,000 homes or for a city the size of San Francisco. California currently has 75 MW of solar installed statewide.
Making Solar PV More Affordable
Much of the concern about solar is its upfront costs. SB 1 would address this barrier in several ways:
- California's growing home construction industry provides us a great opportunity to build a new solar power infrastructure in the most cost-effective way—during the construction of a home. By giving homebuyers the option to add a solar power system to their new home, California can significantly cut the cost of solar power while building a cleaner, more sustainable energy future. Studies have shown that for every doubling of production the cost of manufacturing solar declines 18%.
- By creating a stable source of funding over the next ten years, SB 1 would give the solar industry, as well as those interested in installing, the kind of certainty needed to grow California's solar market.
- The Million Solar Roofs bill includes a requirement that all rebate programs sunset in ten years and that the rebate levels decline steadily over time providing downward pressure on the solar industry to lower their prices and helping create a mature, self-sufficient industry.
What Are the Economic
Benefits of SB 1?
- SB 1 will save ratepayers $2-5 billion by providing a one-time rebate to homeowners and businesses to install solar energy systems and jumpstarting a promising renewable energy market in California. Rebate funds would be more than matched by private dollars, ratepayers essentially are investing in privately funded and pollution free power plants. By installing a million solar systems over the next ten years, ratepayers will displace the need to build more than thirty five peaking power plants (75 MW), each costing approximately $30 million to build and many times that to supply with natural gas. When all the benefits of solar energy are taken into account, studies have shown that for every $1 invested by the ratepayer in solar more than $2-5 is saved over the thirty year life of the solar system.
- SB 1 will bring more than 15,000 jobs to California. Environment California's research shows that for every MW of solar installed, seven times more jobs are created compared to constructing new natural gas power plants. This means that building more than a million solar roofs by 2017 will bring more than 15,000 construction and maintenance jobs (measured in person-years). The difference between solar and natural gas power plants is that the bulk of the money ratepayers spend on electricity from natural gas plants goes into purchasing the fuel-80 percent of which is imported into California. The fuel for solar energy systems, in contrast, is free and 100 percent Californian.
- Solar Homes Will Strengthen the Energy Grid and Help Prevent Price Spikes California energy shortage problems occur mainly on hot summer afternoons when air conditioners are running full force. This is the time of day when malfeasant energy companies, exemplified by Enron's illegal actions during the California Energy Crisis, take advantage of the economic laws of supply and demand. Appropriately, solar power works best during these peak demand periods helping to reduce demand during the critical afternoon hours when air conditioners are operating full-blast throughout the state. By increasing the number of solar homes, ratepayers will benefit from more diversified energy resources that will ease demands on limited fossil fuels helping to prevent future price spikes and market manipulation.
What are the Air Pollution
Benefits of SB 1?
- Reduce Thousands of Tons of Air Pollution Each Year
California's persistent smog problems occur mainly in the summer months when pollutants, such as those emitted by fossil fuel power plants, combine with sunlight to form ozone smog. Reducing California's energy demand during the "ozone season" is helpful in reducing California's persistent smog problems.
For every MW of solar installed, more than 300 pounds of smog-forming pollution (NOx) is reduced each year [3]. This is the equivalent to removing 17 cars from the road each year. In addition, for every MW of solar installed, more than 870,000 pounds of global warming pollution (CO2) is reduced each year [4]. This is the equivalent of removing more than 70 cars from the road each year [5].
This means that should California install 3,000 MW of solar by 2017, as called for in SB 1, more than 1,000,000 tons of air pollution will be reduced the equivalent to 200,000 cars removed from the roads each year.
