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CA: Schwarzenegger to unveil compromise solar energy plan
Bakersfield Californian ^ | 2/27/05 | Don Thompson - AP

Posted on 02/27/2005 5:11:21 PM PST by NormsRevenge

SACRAMENTO (AP) - Gov. Arnold Schwarzenegger aims to make California a world leader in solar energy with a new proposal he's sending to lawmakers Monday.

The plan, which drops some controversial provisions that doomed his "million solar homes" proposal last year, would create a 10-year incentive fund encouraging both residences and commercial buildings to install solar power. But it would drop a requirement that half of all new homes eventually be solar powered. Those changes are designed to mute opposition from businesses and the building industry.

The Public Utility Commission would decide how electricity consumers pay into the incentive fund, most likely with a new fee on utility bills. The administration and solar advocates say consumers will save money because the fee would be offset by money earned from the extra solar power generated by some consumers and used by others.

The revised proposal requires some larger developers to offer solar power as an option by 2010, and to inform home buyers of the costs and savings.

California builds about 150,000 new homes a year. Experience shows about 10 percent of homeowners would choose solar if offered the option - about 15 times the roughly 1,000 solar homes currently built each year in the state, said Bernadette Del Chiaro, a solar advocate for the nonprofit Environment California.

"It's clearly the most ambitious solar initiative ever proposed in the United States," said David Hochschild, policy director for the nonprofit organization Vote Solar.

The incentive approach is modeled on Japan, the world leader in solar power, which has seen a 72 percent drop in solar costs as 70,000 homes have been outfitted for the alternative power over the last 10 years.

California already is the third-largest consumer of solar power equipment, behind Germany, but gets 40 percent more annual sunlight than Germany and 20 percent more than Japan. Hochschild calls California "the Saudi Arabia of sunlight."

That's part of the appeal for a state that may soon again see a repeat of the power shortages that led to rolling blackouts and soaring electricity costs in 2000 and 2001, said Sen. John Campbell, R-Irvine, who is sponsoring the bill package with Sen. Kevin Murray, D-Culver City.

"The sun shines in California - it's homegrown. No other state or country can take it from us," Campbell said.

The goal is to have 3,000 megawatts worth of solar power by 2018, which amounts to about 5 percent of the state's entire electricity usage at peak periods - generally hot summer afternoons when electricity is most in demand, most expensive, and when solar panels are most efficient.

That's the equivalent of 40 new, $30 million, 75-megawatt natural gas plants. One megawatt is enough to power about 750 homes.

"We will be building literally power plants' worth of solar on roofs across the state," said Del Chiaro.

The net projected savings over 10 years would be as much as $1 billion, said Campbell.

The proposal also encourages time-of-use metering, in which consumers pay more during periods of peak demand, encouraging them to run appliances in off-hours.

The measure also would direct the California Energy Commission to consider requiring solar energy in the same way the commission has in the past mandated low-flush toilets.

The goal is to create a large, stable solar market that will lower the cost not only of components but also of installation to the point that incentives will no longer be necessary to make solar energy affordable.

Hochschild installed solar panels on his San Francisco home three years ago, with the state's current rebate program paying about a third of the cost.

His home now feeds electricity into the power grid during the day's peak demand, and draws power at night. Because his energy supply and demand balances out, Hochschild's electricity bill last year was zero - the result advocates and the administration predict statewide.

The systems are projected to pay for themselves in five to 15 years, depending on location and climate. A desert dweller, for instance, is likely to break even more quickly than a resident along the foggy Pacific coast.

Joe Desmond, the governor's deputy secretary for energy, is optimistic about legislative support for the proposal, though he acknowledges some roadblocks. "What we have here is a broad consensus between many of the stakeholders," he said.

The existing solar incentive program is likely to run out of money in the next few months unless lawmakers act. And the proposal could face continued opposition from utilities and labor.

---

On the Net:

Read SB1 and SB1017 at www.sen.ca.gov

Vote Solar: www.votesolar.org

Environment California: www.environmentcalifornia.org


TOPICS: Business/Economy; Culture/Society; Government; News/Current Events; Politics/Elections; US: California
KEYWORDS: california; compromise; energy; plan; sb1017; schwarzenegger; solarenergy; solarpower; unveil
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To: Carry_Okie

Thanks; Max power point control is not very new; it's just a bit more work. It makes a difference if you have to loft the thing into orbit. Heck, I don't even adjust for time of day or season. Lazy. Ahrnold's doin' steroids again if he thinks solar makes sense for on grid.
D.


41 posted on 02/28/2005 5:56:32 PM PST by sasquatch
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To: Boot Hill
It costs as much energy in the manufacture of solar panels than one will ever produce during its entire lifetime.

So it's hard for me to see their value except in niche situations where other power sources aren't available.

The public should think about this. If it costs a barrel of oil to produce a barrel of oil, what's the point?

42 posted on 02/28/2005 6:03:30 PM PST by Dog Gone
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To: Dog Gone
If it costs a barrel of oil to produce a barrel of oil, what's the point?

Political payoffs to investors in a captive market, obviously.

Maybe BP is onto something after all?

43 posted on 02/28/2005 6:14:07 PM PST by Carry_Okie (There are people in power who are truly evil.)
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To: Carry_Okie
Some of that is surely in play, although I don't have an objection to any industry trying to improve a product to the point where it makes economic sense. Maybe solar will make sense some day without subsidies and laws favoring it against real competition.

If BP had an ounce of sense, it would get out of the windmill and solar panel business and get into nuke construction. Instead, it wants to portray itself as the green company that temporarily produces oil while it pursues renewables.

Maybe in a post-Kyoto world that is a viable business strategy, but I can't see it working 50 years from now.

44 posted on 02/28/2005 6:24:28 PM PST by Dog Gone
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To: Dog Gone
I don't have an objection to any industry trying to improve a product to the point where it makes economic sense.

Nor do I.

If BP had an ounce of sense, it would get out of the windmill and solar panel business and get into nuke construction. Instead, it wants to portray itself as the green company that temporarily produces oil while it pursues renewables.

There you go again, letting economic logic confuse you when it is political logic that is at work here. The behavior fits my model perfectly:

Nuclear power plant construction produces energy, therefore BP has no interest in that. Forcing people to spin wheels with bogus "energy conservation" while using more energy from their artificially constrained petrochemical sources fits the corrupt model perfectly. So does recycling, which burns up more diesel, fresh water, than it saves in reduced production costs.

You will note that BP has NO interest in true renewables, such as locally generated biomass from wood, no matter how dire the need. That fits the model too. The major stockholders (such as the British royals) want us using more energy while using government to constrain supply. It's a guaranteed profit, which is entirely logical after all.

45 posted on 02/28/2005 6:53:42 PM PST by Carry_Okie (There are people in power who are truly evil.)
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To: Carry_Okie
We're not really disagreeing here as far as I can tell. My point is that an energy company needs to invest in those technologies that will serve world demand 20 or 50 years from now.

Biomass won't make a dent, especially when India and China become real economies.

It doesn't mean that it shouldn't be pursued; every little bit helps. It's just that if you want to turn the second largest oil company in the world into a niche renewable company when the era of oil passes, they're on a path to do that.

46 posted on 02/28/2005 7:06:56 PM PST by Dog Gone
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To: Dog Gone
Biomass won't make a dent, especially when India and China become real economies.

If you knew how much energy there is in 190 million acres of overstocked National Forests, you wouldn't be saying that.

47 posted on 02/28/2005 7:09:00 PM PST by Carry_Okie (There are people in power who are truly evil.)
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To: Carry_Okie
Yes I would. Planetary energy demand is going to grow, absent some calamity that wipes most of us out, at an extraordinary rate this century. We will need to find the equivalent of 85 Saudi Arabias to meet worldwide energy demand at the end of this century.

That's not going to happen of course. Energy will become more expensive which means that biomass will become more profitable as will the tar sands of Canada. The coal that Clinton took off the market will have to be revisited.

But the only technology that can possibly be ramped up enough to meet our demands is nuclear.

I'll leave the door open for some breakthrough in fusion which would change everything, but if we're not building nuke plants like crazy 35 years from now, we've made the political decision to go back to the 1800s in terms of lifestyle.

48 posted on 02/28/2005 7:25:58 PM PST by Dog Gone
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To: Dog Gone
"It costs as much energy in the manufacture of solar panels than one will ever produce during its entire lifetime."

I've seen that stated from time to time, but I've never seen a credible source to back up the claim. If you've got one, I'd love to have it to post to these threads about solar fraud.

--Boot Hill

49 posted on 03/01/2005 12:50:55 AM PST by Boot Hill ("...and Josuha went unto him and said: art thou for us, or for our adversaries?")
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To: Boot Hill
This French study concludes that a panel will produce the amount of energy used to create it in 10 years of operation. It's not clear what assumptions were made in arriving at that calculation.

I was repeating the comments of a speaker at an energy seminar I attended a few months ago and I don't know his source.

Even assuming the French study is correct, solar is one of the least efficient sources of energy. At best, it will produce about 2.5 times the energy required to manufacture it, plus it's not an "on demand" source of power. Compare that to oil which produces 80 times the energy consumed to bring it to market.

50 posted on 03/01/2005 6:38:12 AM PST by Dog Gone
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To: Boot Hill
I want the BOD "greedy", profit is the business of business.

I agree with you, to a point. However, in a monopoly situation, the rules are different. For capitalism to be a "good thing", there must either be competition or regulation to temper the ambitions of any one company. Particularly in the utility business, which is by definition selling basic needs to customers, the profit motive should be held in tight control.

There are plenty of industries in which to make a healthy profit. I think there are also those which, by their nature as monopolies coupled with the high importance of their product to the basic needs of their customers, should be regulated to a modest profit. If an investor wants to make a killing, it shouldn't be in a utility company, IMO.

51 posted on 03/01/2005 7:05:48 AM PST by TChris (Most people's capability for inference is severely overestimated)
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To: Carry_Okie; SierraWasp; NormsRevenge
Tue, Mar. 01, 2005
Evergreen, Daystar up on California solar power plan

NEW YORK (Dow Jones/AP) -- The stocks of Evergreen Solar Inc. and Daystar Technologies Inc. were boosted this week by a proposal from California Gov. Arnold Schwarzenegger to boost the use of solar power in the state.

Evergreen's share rose $1.28, or 22 percent, to close at $7.20 on the Nasdaq Stock Market. The closing price was also a 52-week high, besting the previous 52-week high of $5.98 set Monday when shares rose 7.8 percent.

Daystar's shares rose $1.90, or 34 percent, to $7.55 on the Nasdaq. It traded as high as $7.66, besting the 52-week high of $6.10 set Feb. 10. On Monday, shares rose 9.3 percent.

On Monday, Schwarzenegger threw his support behind a proposed tax credit program to encourage the installation of solar energy systems for residential and commercial sites. The goal is to create 1 million solar roofs by 2018.

FYI, Evergreen Solar Inc. is 2% owned by Dimensional Fund Advisors.
.
52 posted on 03/01/2005 4:21:54 PM PST by calcowgirl
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To: calcowgirl
LOL! No conflict there!
53 posted on 03/01/2005 4:36:31 PM PST by Carry_Okie (There are people in power who are truly evil.)
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To: calcowgirl; Carry_Okie

I saw the orig thred article on Rough & Tumble yesterday and almost posted it. Nothing is more subject to ridicule that big bombastic, grandiouse claims and genuflecting, followed by little watered down pissy proposals. Futhermore, nothing is more damaging to a politician than becoming the butt of ridicule!!!


54 posted on 03/01/2005 8:55:36 PM PST by SierraWasp (The Dems have lost whatever "redeeming social value" they ever had!!! Just ask Zell...)
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