Oct 28 2009

Go Solar!

Posted by: Jonathan Marshall

Nearly 34,000 PG&E customers had grid-connected solar power installations by the end of September--64 percent of the total for California's investor-owned utilities (IOUs), according to the latest progress report from the California Public Utilities Commission (CPUC).

Together, the three IOUs have now passed 50,000 customer solar installations and 500 megawatts of customer solar capacity, both impressive milestones. About half that capacity has been installed since 2007, when the utilities began offering special incentives under the California Solar Initiative.

The initiative, endorsed by the state legislature and overseen by the CPUC, aims to support creation of a strong solar market in California and to drive prices lower as the market grows and matures. Over the past five quarters, the report notes, the average cost per watt of installed photovoltaic systems has dropped between 9 and 13 percent, depending on size.

The number of new residential applications hit a record high of 2,123 in August--1,602 at PG&E alone--as customers sought to get their applications in before utility incentives were scheduled to decline.

The promotion of so much new clean power--and the jobs that come with it--speaks well of the state's program, the utilities that administer it and especially of the social consciousness of Californians who are doing their part for the environment.

But like many good things, it comes with a price. Rooftop solar is one of the most expensive sources of power. To date, California's IOUs have paid out $605 million in incentives for customer solar installations under the state program, with another $293 million in incentives pending.

Some critics question whether subsidies for residential solar are too high. Even accounting for the special benefits of rooftop solar--including the fact that it produces no carbon emissions, needs no transmission capacity and tends to peak in mid-day, when power is needed most--the social cost currently outweighs its benefits, according to University of California energy economist Severin Borenstein.

Needless to say, his view isn't particularly popular. But all should agree on the importance of  driving down costs further--to make solar an even bigger win for customers and the environment we all cherish.

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