Tuesday, June 12, 2012

Make Rooftop Solar Panels More Profitable

In our perfect world, thousands of rooftops in the Coachella Valley would be covered with solar panels. Homeowners with the resources and vision to invest in the panels would not only cover the cost of electricity, they would stand to profit by generating power onto the grid.

Imagine the incentive, especially for snowbirds. Those who can afford the investment and who leave when it gets hot here could be generating 100 percent of their power onto the grid, reducing the need for fossil fuels and helping California reach its goal of generating a third of its needs from renewable energy by 2020.

The California Public Utilities Commission took a step in that direction last week by voting unanimously to expand the state's net energy metering program.

The program lets homeowners with solar panels receive credit for the extra power they feed onto the grid.

The decision affects the state's three largest utility companies, including Southern California Edison, which serves much of the Coachella Valley.

Commissioners also ordered a new study on the fiscal impact of net metering on regular rate payers, which is wise. We don't want those who can't afford to invest in solar to suffer an unfair burden.

State law sets a 5 percent cap on the amount of power the utilities must accept from homeowners with rooftop solar. The law says the cap should be based on “aggregate customer peak use,” an ambiguous term. Edison calculated its peak use based on 30 minutes in August 2007. Commissioners backed a change favored by solar advocates, to estimate peak use based on each customer's use over a period of time, such as a year. This calculation could double the basis for figuring the 5 percent cap.

Vincent Battaglia, CEO of the Palm Desert-based solar company Renova Energy, said he would like to see no cap at all — to release the “unbridled potential” of solar power.

“We're looking at more jobs, more billions of investment, more avoided power plants,” he said.

With this development, it makes even more sense for the South Coast Air Quality Management District to consider solar incentives as it decides how to invest the $53 million mitigation fee from the new Sentinel “peaker” power plant north of Palm Springs.

The more rooftops that are generating power, the less often the peaker plant will be needed and the less pollution will be released.

More than 100,000 California homes, businesses, schools and public agencies have installed solar panels. The average solar installation feeds one-third of its power back onto the grid. Rooftop solar can be developed without the mammoth investment in the solar farms being developed east of the Coachella Valley, with no risk of disturbing the environment or archaeological treasures.

California should do all it can to encourage rooftop solar, and there's no greater incentive than making it a profitable investment. Unleash the potential.

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