Oct 20 - San Jose Mercury News

California's solar initiative, better known as the million solar roofs program, is off to a sunny start, the state says. And that's especially true in Silicon Valley and rest of Northern California.

"It's a very healthy start," said Polly Shaw, the solar initiative analyst for the state's Public Utilities Commission.

This year through mid-September, the PUC says, applications for solar incentives for projects that will represent 160 megawatts of power have been received. That compares with 198 megawatts of solar power installed statewide over the previous 25 years.

In all, the program has 5,109 applications this year -- with more than 1,200 in August alone. That'll mean $320 million in rebates to homeowners and business owners.

Of those, residences account for 89 percent of the applications. However, the remaining 11 percent from businesses, governments and non-profits represent 87 percent of the total megawatts.

The 29-page progress report compiled by the PUC divides solar-roof incentive applications by utility territory. PG&E's territory has 3,721 of the 5,109 applications -- vastly more than in Southern California Edison and San Diego Gas & Electric's territories.

The goal is to have 3,000 megawatts of solar power, or about 1 million new solar roofs, in operation by 2017.

Akeena Solar, based in Los Gatos, says that a new, residential solar-roof system in California that would cost $25,000 with no incentives would cost $17,000 after rebates and a tax credit. That system would save a typical homeowner about $100 a month in electricity bills.

At San Jose's SunPower, vice president Julie Blunden calls the early results "impressive," especially since much of 2007 has been spent establishing new regulations, procedures and forms.

The PUC report does acknowledge "early transition issues." Shaw said the PUC has worked to lessen paperwork and now offers an online application tool for installers.

A key to the near-term future success of program is increasing public awareness. Global warming, the high cost of oil and of the increasing number of solar companies in Silicon Valley all contribute to greater interest in solar panels.

"The psychology of the market is unbelievable right now," Blunden said.

And the "word-of-mouth" or "testimonial" factor can't be discounted, either.

"If someone on your street has a solar system on their roof, it gives you the confidence to do what you've been thinking about doing, to get off your duff and do it," Blunden said.

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