And California has the potential to add perhaps 79 gigawatts more, according to a report to be released today by an environmental group. That's more than twice as much electricity as the state used Tuesday afternoon when demand reached its daily peak.
The report examines the progress of California's $3.3 billion Million Solar Roofs Initiative, which offers financial incentives for homeowners and businesses to install solar systems. The initiative, created by the Legislature and state regulators in 2006, calls for installing 3 gigawatts - or 3,000 megawatts - of solar generation by the end of 2016.
The number of solar systems installed in the state each year has expanded rapidly, growing by an average of 40 percent, according to the report by Environment California. At that rate, California should reach the initiative's goal. And it has helped create a thriving solar industry within the state, notwithstanding the recent high-profile bankruptcy of Fremont's Solyndra.
"This report really shows that investing in these solar programs works," said Michelle Kinman, a clean-energy advocate at Environment California and one of the report's authors. "It's not only the fact that we're on pace to achieve the 3,000 megawatts. There's also the benefits of the creation of green jobs and the strengthening of the solar industry in the state, not to mention the benefits of clean energy and clean air."
As of last week, California residents and businesses had installed 1,005 megawatts of solar, according to state government data. Only Germany, Spain, Japan, Italy and the Czech Republic have more.
The report credits much of solar's growth in the state to the Million Solar Roofs Initiative, noting that California only had 200 megawatts of photovoltaic solar panels installed before the program began.
The initiative has also helped cut the cost of going solar, the report argues. In 2007, the typical residential solar system in California cost about $10 per watt, according to state data cited in the report. This year, costs are averaging about $7.60 per watt, according to the report. (A typical home solar system generates about 3 to 3.5 kilowatts.)
But other forces are playing a part. Solar panel prices have plunged due to a flood of new production in China - the same flood that sank government loan beneficiary Solyndra. And solar lease programs, which allow homeowners to install solar systems without owning the equipment, have surged in popularity, now accounting for more than half of solar installations in the state.
As a result, it's impossible to know how much of solar's spread across California is due to the Million Solar Roofs Initiative rather than other factors. The same is true with prices.
But Laura Wisland, an energy analyst with the Union of Concerned Scientists, said the program has had a significant effect.
"I do think it's done its job, because it has created strong demand in the state, and that encourages solar developers to find cost savings," said Wisland, who was not involved in the Environment California report. "Panel prices are falling for everyone, so you need to find ways to innovate and make your projects cheaper to compete."
The Million Solar Roofs Initiative includes multiple components, addressing different types of buildings and utility customers. The largest component is the California Solar Initiative, which provides rebates for homeowners and businesses that install solar.
The rebates were designed to shrink over time as the state's solar market grew and prices declined. Starting at $2.50 per watt in 2007, the rebates are now just 25 cents per watt in portions of the state served by Pacific Gas and Electric Co.
And yet, even as the incentives decline, the number of applications keeps growing. Last year Californians submitted CSI rebate applications for enough solar projects to generate 425 megawatts of electricity, more than twice the capacity of the previous year's applications.
"Without this program, you wouldn't see this level of activity," said Scott Murtishaw, an adviser to the president of the California Public Utilities Commission. The commission, along with the state's large investor-owned utilities, runs the California Solar Initiative.
"Even with the fall in panel prices," he said, "you wouldn't see this kind of activity."
Source: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/11/09/BU6D1LS4E6.DTL
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