Jun 26 2008 7:46PM | Permalink | Email this | Comments (1) |
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At PCBC this afternoon, I had an interesting conversation with Jackalyne Pfannenstiel, chairman of the California Energy Commission, who was in San Francisco to educate builders about the New Solar Homes Partnership. This program, part of Governor Schwarzenegger's California Solar Initiative, provides financial incentives to builders to encourage the construction of new solar homes. The goal is to install 400 megawatts of solar electricity on approximately 160,000 new homes.

It's no surprise that there's such a big push for solar energy in California, with its sky-high utility rates. There is evidence that high-performance solar systems can reduce electric bills by up to 50%. The cost of solar is coming down, the technology has advanced significantly, and home buyers are more accepting of solar than ever before (one recent study showed that two-thirds would consider installing a solar system).

As of January 1, 2008, about half a dozen builders have joined the program, including production builders Grupe Homes and Shea Homes. When combined with other energy efficiency measures, solar PV roof modules can give builders a real competitive edge. And the incentives are attractive. Homeowners qualify for a federal income tax credit of $2,000 and may be eligible for a second $2,000 credit if the home has additional energy efficiency features. Builders can get rebates from the utility companies -- specifically, a base incentive of $2.60 per watt for production homes where a solar PV roof is a standard feature, plus a federal tax credit if they meet high energy efficiency standards.

Pfannenstiel says her goal is to make the NSHP self-sustaining. "It should be a market program where customers demand [solar systems] in certain parts of the country at a certain cost," she says. In other words, she thinks the program could be replicated elsewhere. It sure seems like a win-win for the Golden State, with the promise of cleaner energy and solar electric systems that will become, over time, more affordable for both builders and consumers.