The Leader in Solar Energy Is California

Between rising energy costs and increasing awareness of environmental issues, solar power is becoming more mainstream in the United States. Nowhere is this more evident than in California where it’s becoming common to see PV panels on rooftops everywhere. As a leader in solar energy, California has become the world’s third largest market for solar power technology. While the state’s sunny climate is a contributing factor, California public policies are a driving force in the growth of solar power.

California has been committed to solar energy since the state initiated its first solar power incentive programs back in 1998. The state renewed that commitment in 2006 when it adopted a new program called the California Solar Initiative. This ten year incentive program has the lofty goal of seeing 3000 megawatts of solar panels installed across up to a million rooftops with a budget of $2.8 billion dollars. The initiative will be using a combination of retrofitting existing buildings as well as increasing new construction incorporating solar power systems in the designs.

Both the CEC (California Energy Commission) and the CPUC (California Public Utilities Commission) have offered rebate programs for years to help offset the installation costs of solar power systems. The CEC rebate program targets smaller solar setups of less than 30 kilowatts which covers retrofits for residences, schools, small businesses, and new construction. The CPUC program focuses on large commercial systems of 30 kilowatts and up. The CPUC has dedicated approximately $3 billion dollars to its newest incentive program.

California also has a property tax exemption for some types of solar energy systems that are installed by the end of 2009 with more tax exemptions or credits being developed. Another future focused program is the Zero Energy New Home Program. This program focuses on developing home designs that will maximize energy efficiency and solar energy generation.

Developers in California have started building whole communities of new homes with solar power systems as standard features. One such development was built in Menlo Park, California and the houses were put on the market this past summer. Despite the down real estate market, 44 houses have sold already. Realtors are finding that solar power systems are boosting resale values of existing homes as well as increasing market prices on new homes. Thanks to all the incentives available homeowners in California are able to break even on solar power systems costs in only 3 to 8 years instead of the average of 14 years nationwide.

Of all the states with incentives for promoting solar energy, California is the leader with the many programs available. The state’s policies focus on increasing the percentage of electricity generated by solar power as well as creating jobs in the solar energy sector. As the demand has grown, California has also experienced a 7.3% annual cost reduction in system costs for new solar installations. Between the increased interest for solar power and the decreasing costs, California is poised to overtake Germany and Japan in the solar energy market.

Enter your search terms Submit search form