Posted on January, 16 2006

SAN FRANCISCO – Last Thursday, January 12, the “California Solar Initiative” was approved by the California Public Utilities Commission. The $2.9 billion program, backed by Governor Arnold Schwarzenegger, could make California one of the world's largest producers of solar power.

3,000 megawatts of solar energy will be added over 11 years through the installation of 1 million rooftop solar energy systems on homes, businesses, farms, schools and public buildings. That amount of electricity would be equivalent to about six new power stations.

The measure was approved on a 3-to-1 vote.
It was strongly backed by Governor Arnold Schwarzenegger, who wants to make renewable energy like solar and wind power 20 percent of California's electricity resources by 2017.

With the implementation of this measure, California would become the world's third-largest solar generator behind Japan and Germany. Currently, the state produces about 100 megawatts of solar electricity.

The program will offer rebates for adding solar systems. It is expected to give a big boost to manufacturers of solar power generating cells and panels. An industry official said the commission's decision will give investors more certainty about the future of solar electricity.

Howard Wenger, executive vice president of privately held PowerLight Corp., a Berkeley, California-based solar systems developer, was delighted: "This is a phenomenal decision. The regulatory environment has been the number one uncertainty for the investment community. This long-term program provides the certainty we have been sorely lacking."

Solar spending could save California utility customers an estimated $9 billion from a reduced need to build new power plants and purchase electricity supplies during high demand days in the summer, according to a commission report.