San Francisco Lead The Way For California Solar Energy

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

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

The San Francisco incentive program covers between $3,000 to $6,000 of the cost of installing affordable solar panels, as well as $10,000 for businesses and charitable organisations, and $30,000 for nonprofit affordable housing.

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

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 energy systems.

But the largest barrier to adoption was the up-front cost. 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 solar panels installed on his roof a month ago. He chose to pay for 8 percent of the $35,000, 6-kilowatt solar energy 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 with affordable solar panels. 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 solar power 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.

Making use of solar energy rather than that produced from natural gas, coal, and oil is much better for the environment as it is clean, renewable and sustainable. The sun is the best energy source because it is readily available and doesn't run out.

With many incentives now available for adopting solar energy, there has never been a better time to go green. Programs vary from time-to-time, but the government is interested in increasing the number of solar energy installations and will provide funding to make it easier for people to get involved.

So come on all you Californians out there. What are you waiting for? You have no excuse now.

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