San Francisco Lead The Way For California Solar Energy

In cities such as San Francisco you can get fantastic incentives to go green. I only wish it was like this in the UK.

Since San Francisco's solar program came into effect in July, it has become financially viable for the ordinary homeowner to install solar energy systems.

This project, together with a California solar energy rebate program of $1.90 per installed watt and the 30% federal investment tax credit for solar energy, adds up to be a good deal, even for the city's smaller households.

San Francisco residents usually pay an electricity rate that depends on how much power they use. The more they use, the higher the bill. The rates vary from 12 cents per kilowatt per hour to 36 cents per kilowatt per hour.

Leasing Programs

SolarCity, a California solar energy company which leases solar panels to homeowners started out by cutting installation costs by 20% to 30% by gathering homeowners together to do aggregated purchases of solar systems.

But the largest barrier to adoption was the up-front cost. [unless you build your own for next to nothing like this.

So they started a solar-leasing program, similar to the power purchase agreements that have become popular with larger corporations.

Chris Clark, a resident of the Inner Sunset, a foggy neighborhood in San Francisco, is just finalizing his leasing deal with SolarCity. "It's going to reduce our bill significantly with the city rebate, probably 40 percent," he said. The roughly $120 that Clark currently pays for electricity per month is predicted to fall to about $70 per month when his system gets installed in August.

John Stubblebine in Cupertino, Calif., had SolarCity panels installed on his roof a month ago. He chose to pay for 8 percent of the $35,000, 6-kilowatt solar panel system up front.

"You can choose to pay zero, 8, or 16 percent of the system. Since I chose to put in a slightly more expensive system, there would be a slightly higher rate without a down payment," he said.

Stubblebine cut his monthly electricity bill from $158 to $116. But he also noted that he still needs to pay a residual bill to Pacific Gas and Electric for meter readings. And his electricity rates have changed from a set rate to being demand-based, with a midday peak price.

"You settle your bill with PG&E by the end of the year. If you've used more electricity than you produced, you pay all that. If you've used less, you don't get money back," he explained.

SolarCity provide service for the initial 15 years for which customers sign up. Thereafter, customers can choose whether they want to renew the lease, buy the system, upgrade it, or take it off the roof.

SolarCity say that now is a good time to go solar, since the federal ITC incentive will expire by the end of 2008, unless renewed by Congress. And the city incentive program has a limited pot of $3 million, only enough to cover 500 to 1,000 households.

So come on all you Californians out there. What are you waiting for? You have no excuse now. And even if this is still too expensive for your pocket, have a look at this mega-cheap way of installing solar power here.

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