California PUC Approves Nation's Biggest Solar Program

San Francisco - The California Public Utilities Commission (CPUC) today approved the California Solar Initiative, a program to install 3,000 megawatts of solar on California homes, businesses, farms, schools and public facilities over 11 years. The initiative is the nation's largest solar power investment, designed to make solar power mainstream and affordable. It will add clean energy to the state's peak demand resources, reduce risk by diversifying the state's energy portfolio, and establish a world-class solar market in California.

"With this initiative, California has taken a major step toward energy independence. This long-term, visionary policy will save ratepayers money, create high-paying jobs and reduce our dependence on foreign sources of energy. The CPUC should be congratulated in creating a decade-long initiative that will drive the US solar industry to invest in technological innovation and scale up manufacturing," said Rhone Resch, president of the national Solar Energy Industries Association. "California will be a leader in the next great high-tech growth industry - solar energy."

The California Solar Initiative creates 11 years of funding for consumer rebates. The CPUC will provide $2.8 billion in customer incentives for solar projects on existing residential buildings, as well as all public buildings, industrial facilities, businesses, and agricultural facilities. The California Energy Commission, meanwhile, will provide $400 million in incentives for new homes, specifically targeting collaborations with the builder / developer community. Incentives are to be gradually reduced over time and phased out by 2016 under the CPUC proposal. The money will come from existing funds already earmarked for solar power and a de minimis additional surcharge on monthly electric bills over eleven years.

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