CPUC Implements Part of Aggressive Solar Initiative

CALIFORNIA -

The California Public Utilities Commission (PUC) has increased funding for photovoltaic (PV) systems by $300 million, an action that the commission described as the first step in jumpstarting its implementation of the California Solar Initiative (formerly named California's Million Solar Roofs Initiative). The funding will be available to solar technologies that are currently part of the state's Self-Generation Incentive Program (SGIP).

The PUC's decision also reduced the rebate level for PV from $3.50 per watt to $2.80 per watt of installed capacity. The new rebate level is available to owners of new projects who apply for funding in 2006. For projects already on the program's waiting list, the rebate will be $3 per watt, corresponding to a previously planned reduction in the rebate level that would have taken effect in January 2006 without the commission's decision. The PUC noted that it chose to reduce the rebate level for new projects because "evidence shows that there is plenty of interest in pursuing solar installation even at the reduced rebate level."

The PUC also issued a proposed decision on December 13, 2005, detailing the commission’s action plan for the 10-year California Solar Initiative (CSI). The CSI would involve a total investment of $2.8 billion over 11 years to support the installation of 3,000 megawatts (MW) of solar power. It would provide financial support for all qualifying solar technologies under 1 MW in capacity, with the exception of systems owned by distribution utilities. The initiative would be supported by revenues collected from gas and electric customers.

Comments on the proposed decision were due January 3, 2006. The PUC will consider the CSI's full 10-year funding and framework at a meeting on January 12, 2006.