Home News CCSE Press Releases Solar Water Heating and Efficiency Act of 2007 Created

Solar Water Heating and Efficiency Act of 2007 Created

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SAN DIEGO, Calif. (October 15, 2007) — In an attempt to position California as a world leader in the fight against climate change, the Governor signed AB 1470 into law on Friday, creating the Solar Water Heating and Efficiency Act of 2007. This bill will go a long way in reducing harmful carbon dioxide emissions. The budget for the bill will be $250 million collected from gas and utility company ratepayers.

The California Center for Sustainable Energy ( CCSE) was chosen by the California Public Utilities Commission ( CPUC) to administer the San Diego Solar Water Heating Pilot Program. The CPUC will evaluate data from the program before developing a statewide plan to reduce the consumption of natural gas. It will position San Diego as a leader in the efforts to minimize dangerous gas emissions. “After transportation, area emissions from water heating are the highest emission source in California,” says Andrew McAllister, the Director of Operations at CCSE.

The program is designed to encourage both commercial and residential customers to install these environmentally friendly solar water heaters and to educate them on the cash and tax credit savings they will receive. The cash incentive for San Diego customers can be up to $1,500 for a residence and $75,000 for a commercial user. The goal is to cover 20 to 25 percent of the cost associated with the equipment and installation of a solar water heater. On top of those savings a customer will also receive a 30 percent federal tax credit capped at $2,000 for a residence and no cap for a commercial installation.

These are important savings for consumers as oil and gas prices have been skyrocketing the last few years. It is also important to consider the positive impacts solar water heaters will have on the environment. A recent field poll showed that 80 percent of Californians are concerned about climate change and this program will allow businesses and consumers to do their part to help reduce carbon dioxide emissions.

The results from the SWHPP will be central to determining whether California will implement a statewide incentive program, and, if so what its design characteristics will be.

NOTE: On Tuesday, October 16, CCSE is providing the media with a household that is installing a solar water heating system. A resident will be available for comment as will officials from CCSE. Additional information on the Pilot is available at www.swh.energycenter.org.
 

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"Powering the world's growing population and economy could require 50 to 60 percent more energy by the year 2030. That means more use of fossil fuels, biomass, nuclear power and alternative energy."

- National Petroleum Council, July 2007