Solar Program Reports Successes

Installations on track to produce record-setting year

So far, 2009 is a record-setting year for solar projects funded by the California Solar Initiative ( CSI) launched in January 2007 as the nation’s largest solar incentive program. Statewide, May was the highest month ever for new solar installations (1,444), and June was the busiest month on record for CCSE’s residential CSI program with more than 350 applications.

California currently has more than 515 megawatts of solar power connected to the electric grid, equivalent to the capacity of one large power plant. The state’s goal is to increase solar power to more than 3,000 megawatts by 2017, as part of Governor Arnold Schwarzenegger’s Million Solar Roofs program and his vision of California leading the nation in promoting sustainable energy technologies to mitigate potential dangers of global warming. CSI is slated to fund the installation of about 2,000 megawatts of solar at a cost of $2.2 billion over ten years in efforts to advance the market.

After 2-1/2 years, CSI has installed 226 megawatts of solar power, about 13 percent of the total program goal, and it has an additional 8 percent in applications pending installation. Despite the challenging economic situation, CSI is on track to fund the installation of more than 150 megawatts this year.

CSI payment levels are set by a ten-step, declining scale that is designed to go to zero as program goals are achieved. Each CSI program administrator ( PG&E in Northern California, SCE in Southern California and CCSE in San Diego) has their own incentive rates determined by the amount of megawatts allocated to each step. Once the total number of megawatts for each step is reached within a territory, the program moves to the next step and offers a lower incentive level. According to Benjamin Airth, CCSE’s CSI residential program manager, applications are well ahead of original projections.

“When CSI was initiated, it was set up with the idea that each step would last for a year. However, after less than three years, we are now at step 5 in San Diego,” Airth said. “Clearly early adopters receive a larger amount per rebate, which in turn helps their return on investment and payback. So, the longer you wait, the less you get for an incentive, while continuing to pay your electricity bill.”

Consumers, solar salesmen and installers monitor the megawatts remaining in each step and the incentive money available online at CSI’s trigger tracker. Airth said that as a step is about to end, applications shoot up, as they did in June when he received 200 applications in seven days just before the transition from step 4 to step 5. For an average 4 kilowatt home installation, the step reduction reduced the estimated rebate from $7,600 to $6,200. You can see the current steps for incentives online at the CSI Trigger Tracker.

NOTE: “Solar for Homeowners” will be presented at 11:30 a.m. on Thursday, Sept. 24. Lunch will be provided. The workshop is free. Register here

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