CALIFORNIA PROPOSES $3.2 BILLION SOLAR PROGRAM

This is it. The big enchilada. Yesterday, the California Public Utilities Commission issued the much-anticipated proposed decision for an 11-year, $3.2 billion incentive program for solar energy systems on California rooftops. This is the biggest solar program in the nation and, after Germany, the second biggest in the world.

The program would create 3,000 MW of grid-connected solar energy in California. Running the numbers, the impacts are substantial:

· Dollars: the net present value of the program would be $3 billion, doubling the initial investment in solar. When market transformation is taken into account, that’s $13 billion in net savings over 21 years of solar installations.

· Jobs: approximately 19 thousand construction jobs and 3 thousand maintenance jobs.

· Emissions: direct reduction of 52 million tons of CO2—and taking market transformation into account, that’s 190 million tons of CO2, equivalent to taking 3.7 million cars off the road.

Thank you to all of you who took the time to write the Commissioners in support of passing this bold solar program. All together, the Public Utilities Commission received more than 50,000 pro-solar public comments, which is more input than any other issue they have ever considered, including the energy crisis.

Program elements to note:

· Rebates to begin at $2.80/w in 2007, decline on a set schedule

· The rebate will shift from a capacity-based rebate to a performance-based incentive

· 10% of funds will be dedicated to provide solar for low income and affordable housing

· Incentives for new homes contingent on exceeding current efficiency standards by 10%

· Incentives for retrofits of existing structures contingent on energy efficiency audit

· Pilot program for solar thermal

The proposal will be available for public comment for 30 days before the final vote to implement the program takes place on January 12.