Sponsored by the Honorable US
Rep. John Campbell (CA-48) & the Honorable US Sen. Dianne Feinstein, the
briefing detailed the nation’s largest and newly adopted solar program
CAPITOL HILL—The Honorable Congressman John Campbell (CA-Orange County) joined other state policy makers and environmental advocates in discussing the details of the first-in-the-nation California Solar Initiative (CSI), recently adopted by the California Public Utilities Commission (CPUC). The CSI, modeled largely on the California Million Solar Roofs bill, is the largest solar power program in the country, committing a combined $3.2 billion in funds to drive a million consumers toward solar power over the next 11 years. The program is designed to provide rebates for homeowners, businesses, farms and government projects investing in rooftop solar power systems. It aims to install 3,000 MW of solar power and in so doing regain California’s position as a world leader in solar power while also lowering prices to the point at which government rebates are no longer needed to drive demand.
“The energy crisis of 2001 still haunts California. With high energy prices hitting everyone’s pocketbooks this winter, taking these kinds of big steps toward true energy independence are greatly needed,” said Congressman John Campbell (CA-48), who as a state legislator was co-author of the Million Solar Roofs bill which helped pave the way for the CPUC’s California Solar Initiative. “Ultimately, solar power is not only good for the environment but, by diversifying California’s energy portfolio, it can also help provide more reliable power and reduce energy costs over time.”
By reducing the need to build the equivalent of six large power plants over ten years, the CSI will also help California meet its global warming pollution reduction goals. For every solar roof, at least one ton of global warming pollution is reduced each year.
"The California Solar Initiative is the largest solar program in the country and I hope it will be a model for other states," said CPUC Commissioner Dian M. Grueneich. "The program will be a major source of dependable and environmentally friendly electricity, and is a major tool in the state's promise to address climate change and meet Governor Schwarzenegger’s goals to reduce greenhouse gas emissions."
A bipartisan group of California policy makers, business groups, labor unions and the public broadly supported the CSI program. More than 50,000 written comments to the PUC in support of the solar initiative, the largest recorded.
“With this program, California can regain its position as a world solar power leader,” said Bernadette Del Chiaro, clean energy advocate for Environment California Research & Policy Center, a nonprofit, nonpartisan state environmental group which has been the leading advocate for the Million Solar Roofs program for the past few years. “Given California’s abundant sunshine and growing economy, this program has the potential to make California the ‘Saudi Arabia of solar power’.”
The CPUC anticipates it will fund the combined $3.2 billion program without raising electricity rates. Instead, the money would come from existing funds already earmarked for solar power and a small surcharge that can be absorbed in existing rates. According to a staff report prepared by the CPUC last summer, this $3.2 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.
Other benefits of investing in solar power include more jobs. For every megawatt of solar installed, seven times more jobs are created compared with the equivalent in natural gas power plants. Environment California research estimates this new solar market will create 15,000 new California jobs.
The CPUC program comes at the request of Governor Schwarzenegger and mirrors the bulk of the governor-backed Million Solar Roofs bill (SB 1), co-authored by Senator Kevin Murray (D-Los Angeles) and former state senator, now U.S. Congressman John Campbell (CA-48). 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.
Major Elements Of The California Solar Initiative
• The complete California Solar Initiative program will invest a total of $3.2 billion over 11 years for consumer rebates. This number includes the $300 million added on December 15, 2005 and the $400 million already available through the Public Goods Fund.
• All small-scale solar technologies will be eligible: e.g. photovoltaics, thermal, hot water, etc.
• The rebate will start at $2.80/watt and declines 10% per year. It will be phased out at the end of 2016.
• Low-income ratepayers up to 260% of federal poverty levels will not pay into the fund and 10% of the fund will be set aside specifically for low-income and affordable housing projects.
• The program will be administered by the CPUC with administration of a rebate program specifically earmarked for new construction run by the California Energy Commission.
• The fund will be created from a small surcharge on electric and gas customers within PG&E, Edison, San Diego Gas & Electric and So. Cal. Gas Company territories. The PUC estimates the surcharge will be absorbed into existing rates without any discernable impact to energy bills.
