California is proposing to add solar power to a million homes in the next 10 years, paid for by a surcharge on electricity bills equivalent to about US$0.27 a month.
The plan, proposed by the California Environmental Protection Agency (EPA), is intended to honor an election pledge of Governor Arnold Schwarzenegger to ensure that half of all new homes in the state are built with solar power facilities.
The surcharge would raise US$1 billion in 10 years for the installation program, with the state using the money to give rebates to home builders who install solar panels on new homes, and incentives for installing panels on existing homes.
Homeowners would be able to reduce their power bills and even make money by selling "unused" solar energy back to the electricity companies via two-way meters.
Electricity supply has been a sensitive issue since the energy crisis in 2001 when a free-for-all market pushed prices so low that many stations shut down leaving the state short of power. Solar power became more popular.
According to the California Energy Commission, while 900 photovoltaic systems were installed from 1998 to 2000, more than 11,000 systems were installed from 2001 to the middle of last year.
Most of the changes were to older properties, but with 150,000 new homes being built a year the greater potential led to a campaign for the state to use its "greatest asset" -- sunshine.
Tim Coyle, the senior vice president of the California Building Industry Association, said home systems could cost from US$17,000 to US$20,000 and would not pay for themselves as customers would typically pay US$120 a month to repay the purchase price and then receive about US$70 in "returns" in electricity generated.
The state grants are designed to make the system pay.
According to the draft plan, "each month the homeowner will save more money in reduced electricity charges than [will be paid] on the solar mortgage."
Together the solar installations would equal 36 new, 75-megawatt natural gas plants, and would avoid adding millions of tonnes of carbon dioxide into the air a year.
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