After Gutenberg

The California Solar Initiative went into effect January 1. Installers are adjusting to the new policy, e.g. changes in application processes, rebate pricing, and energy efficiency and metering requirements. Word from the Geek Chorus is that changes to the policy will be needed if the ten year goal of a million more solar rooftops is to be accomplished.

Marc Lifsher has some bad news for the Governator. Californian home owners are eschewing installation of solar power because of a change in regulations. As of Jan. 1, in order to get a rebate from the Million Solar Roofs program — essential* in offsetting the large initial outlay — applicants first are required to “sign up for costly pricing plans offered by utilities that charge more for their electricity during hours of peak demand.”

*Note: Even with a rebate of as much as 50% of the cost and a federal tax credit, industry experts say that the higher rates discourage investment in solar power.

Sue Kateley, executive director of the association that represents California installers of solar systems, says “It’s a mess. It was everyone’s intent to expand the use of solar in California, not throw it into the ditch.” In a recent letter to legislators, Michael R. Peevey, president of the California Power Utilities Commission wrote, “The fact that some customers may find themselves paying higher electricity bills if they decide to install solar … is unfortunate and indeed perverse.”

Lifsher explains, “Time-of-use electricity rates are higher during hours of peak demand, such as hot summer afternoons, and much lower in the early morning, late evening and at night.” And, hot summer afternoons is ideal for obtaining solar photo voltaic electric power. It is when you want clean energy to offset peak demand rather than having to rely upon supplemental power from diesel or natural gas generators. More solar power, less smog.

Photo by Abraxas3d

California was where 87% of all new solar powered homes in the US were built. With a new initiative effective January 1, this percentage may be dropping… for the wrong reason.

As noted by one Slashdot commentator to the mdsolar post, “The biggest problem here is that solar panels are very expensive. You need a LOT to cover your usage,” otherwise not enough photons are collected and converted to enough power to cover peak usage needs, so you still need to buy more at higher “peak” rates.

The difference between peak and off-peak rates is particularly large in the 11 counties of Central, coastal and Southern California, where (Southern California) Edison provides electricity service to 13 million customers… Time-of-use rates are constraining solar sales but are less of a problem in the areas served by California’s other investor-owned utilities, Pacific Gas & Electric and San Diego Gas & Electric, analysts say. Ratepayers at publicly owned utilities, such as the Los Angeles Department of Water and Power, are not affected by the PUC rate ruling and operate their own solar installation incentive programs.

Meanwhile, says Pat Conlon, an energy-efficiency expert with the city of Palm Desert: “As of Jan. 1, there have been no new installs. The solar industry in the desert in the Southern California Edison territory is dead until this thing is fixed.”