California Solar Power | California to Become 3rd Largest User of Solar Power in World

In early 2003 the California Public Utilities Commission had to rule on a proposal to charge Home Solar users an "exit tax" for opting out of the Grid. After much protest by advocates for clean energy, three years later there was a complete turn of face, when the same Commission announced a $3.2 billion incentive aimed at increasing the solar power output of the state by 3,000 megawatts within eleven years. To do this they intend to install solar energy systems in a million homes, the equivalent of six new power stations (California presently has about 100 megawatts of solar power installed). This would make California the world's third largest user of solar power, after Japan and Germany.

Domestic and Commercial solar power systems are expensive to install, but there are huge incentives from the Commission as well as tax credits offered by the state. In addition the Federal Government introduced new Federal Solar Tax Credits of 30% on 1st January 2006. The program will pay $2.80 per watt of electricity produced by any single photovoltaic system. In order to provide funds for this program, the average California ratepayer will pay about one penny per day, and up to 80% of the cost of the program will be recovered from taxes on the purchased solar systems. Taking all these factors into account, it is very feasible to install a quite sophisticated system, financing the net amount remaining and ending up with a positive monthly cash flow.

This turn of events will have the effect of making California the center for solar manufacturing in the United States, create thousands of new jobs and ultimately bring down the overall cost of solar systems. Other advantages are that pressure will be taken off the Grid at peak times, where power cuts have been common in the past, there will be a big reduction in harmful emissions and therefore cleaner air, and no extra demand on the state's water supply as there would be if gas burning power stations were built instead. Another great advantage is that once a solar power system is installed, there is no further chance of the large fuel price fluctuations that presently occur.

In addition to the above, it was announced in August 2005 that an agreement was reached between two large companies that could result in the building of a 4,500 acre solar generating station in Southern California. The new solar complex will become the largest solar generating station in the world and will produce more electricity than all other United States solar projects combined.