Aug 19 - McClatchy-Tribune Business News Formerly Knight Ridder/Tribune Business News - Corinne Reilly Merced Sun-Star, Calif.

With his new solar energy bill and leading solar technology experts at UC Merced, Rep. Dennis Cardoza said Friday he believes the Central Valley is well equipped to become a national leader in renewable energy.

"We believe it's time for a new energy source, and we believe in solar power," said Cardoza, D-Merced. "We can make the Central Valley the Silicon Valley of renewable energy."

Cardoza's bill -- dubbed the Empowering America Act -- seeks to make solar power affordable for all Americans. It would increase tax credits to homeowners who install solar panels and spur solar power research and development programs.

With a just-installed $50,000 solar power system atop his Merced home, Cardoza said he's demonstrating his commitment to renewable energy.

"I hope this shows just how strongly I feel about this issue," he said at a press conference held Friday in his front yard.

UC Merced Dean of Engineering Jeff Wright, also on hand, said university researchers and faculty are proud of the solar technology advances they've already made, and look forward to continuing their work.

"We feel there are major gains still to be made in the near future on this front," said Wright.

Solar energy advocates say the environmental and economic benefits of solar power are clear.

"It's just common sense," said Jennette Gayer of Environment California, a Los Angeles-based environmental group. "We're digging ourselves into a hole with the way we're currently using energy."

Over 10 years, said Cardoza, the system on his home will prevent the creation of more than 500,000 pounds of greenhouse gases.

And, he said, building the solar technology industry locally would vastly expand the Central Valley's economy.

Under current law, solar panel tax credits will expire next year and allow just $2,000 in rebates per household. Cardoza's bill would increase refunds considerably and extend them through 2015.

Cardoza said the system on his home -- comprised of dark, sparkling panels over about half of his roof -- cost $54,000 to install after current rebates.

Under his bill, the same system would cost about $30,000.

And while Cardoza said that might still seem like a lot to spend, he said his monthly electricity bill -- which used to run about $1,000 during summer months -- has already dropped below $100.

Solar industry representatives say most systems pay for themselves in less than 10 years, and typically last at least 25 years.

In addition to millions in tax credits, Cardoza's bill would provide about $1 billion over five years to establish and fund a Center for Advanced Solar Research to further develop solar technology and bring down its cost.

The bill would also prohibit homeowners associations from preventing solar installations and would cap related permitting fees.

California lawmakers appear to also be recognizing the benefits of going solar.

This week, state lawmakers sent legislation to the governor's desk that would lift caps on payments utility companies must make to homeowners for excess energy generated by their solar systems.

It would also require home developers to make solar panels a standard option on new homes.

"This is an environmental issue, but it's also more than that," said Cardoza. "I'm confident the Valley will lead the way in this next generation of energy technology."

Reporter Corinne Reilly can be reached at 385-2477 or creilly@mercedsun-star.com.