California’s movement toward a renewable energy future has been accelerated by government subsidies for solar-produced electricity, notably the California Solar Initiative’s (CSI) Million Solar Roofs Program.  The Million Solar Roofs Program launched in 2007 with the goal of stimulating the installation of 3,000 megawatts of new solar power systems by 2016.

Subsidies were initially set at $2,500 per AC kilowatt or 39 cents per kWh produced in the first 5 years.  That covered about 20% of the cost of a system, and federal tax credits paid for another 30%. The incentive program was designed so that the incentives would reduce in steps over the 10 years of the CSI. These reductions have taken place somewhat faster than expected.  The incentive is now $250 per AC kilowatt in PG&E territory.

As the CSI program approaches its end and other programs such as net metering are facing scrutiny from utilities, there is concern from environmental organizations and solar equipment makers that California’s movement toward a cleaner energy future may stall.  Experience in other countries has shown that poorly designed and administered incentives and requirements can produce a boom and bust cycle in the solar business.

Bruce Karney has been involved in solar photovoltaics since he organized a group purchase of solar panels in 2007 in which 119 Mountain View homeowners bought solar PV from a single vendor at a deep discount.  Since then he has worked in marketing and customer finance at SolarCity, California's leading residential solar design, installation and financing company.  He is currently Marketing Operations Manager at Skyline Solar, a Mountain View based manufacturer of medium-concentration photovoltaic systems.  Bruce will review the state of solar subsidies in California and elsewhere and offer his thoughts on what the future may hold.