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Wednesday, January 18, 2006

Future Looks Brighter Thanks to the California Solar Initiative

On January 12th the California Public Utilities Commission (PUC) approved the California Solar Initiative (CSI), which provides $2.9 billion in incentives from 2007 - 2017 to help promote the development of solar power. This program is aimed at reducing the costs of solar technology for State consumers as California move towards cleaner energy solutions. The CSI represents the largest program of its kind in the United States, setting an example that many hope will lead to nationwide growth opportunities within the renewable energy arena.

"The California Solar Initiative is the largest solar program in the country and I hope it will be a model for other states. The program will be a major source of dependable and environmentally friendly electricity, and is a major tool in the State's promise to address climate change and meet the Governor's goals to reduce greenhouse gas emissions," stated PUC Commissioner Dian M. Grueneich.

It is believed that this program will help to stabilize and solidify the market for solar technology, benefiting consumers as well as participating companies operating within this space. Dr. Robert Wilder, CEO & Founder of Wildershares, LLC and Manager of the WilderHill Clean Energy Index explains, "Many solar companies have already sold out all their panels for this entire year and some into the next year, so this isn't so much going to create wanted demand - the demand is there now. Instead, it's going to ensure a more stable scenario for the future. Producers of raw silicon for panels will ramp up with less risk now, as they look five or ten years out. This Initiative will also help kick-start other States and even Nations to grow their solar programs. Germany and Japan have benefited so far with the jobs created and growth from their ambitious programs, and now it's California's turn. I'm proud that the State is going to generate economic growth and new jobs, enacting this smarter energy policy that's a win-win all around."

I am looking forward to evaluating the impact that this initiative will have not only for Californians, but for many of the other states that have aggressively been pursuing clean energy.

I am open to hearing perspectives on potential impacts - any comments?


Anonymous said...

You say

"I'm proud that the State is going to generate economic growth and new jobs ..."

Not clear to me why this should make YOU personally proud?

Ann-Marie Fleming said...

It is refreshing to see domestic job growth being created through a focus on building energy independence, environmental protection and an overall higher energy efficiency level for businesses and consumers. The alternative is to import energy, which keeps us in the same cycle we are trying to break.

FreeStocksTips said...

This is great for our economy. Take a look at XSNX trading up to a new all time high with record volume.

Jason C. said...

"Long-term committment" is the key idea here. Manufacturers need a predictable market, and business customers and residential consumers still need solar subsidies/rebates to keep the pay-back period for solar at 10-15 years or less. Solar in Japan was at something like $15/watt installed 10 years ago, but after 10 years of continually decreasing subsidies, the subsidy is almost down to 0 and they have a self-sustaining market.

That's what should happen in California over the next 10 years. Rebates will gradually decrease along with the installed price of solar, helping california reach 20% of all electricity produced by renewable sources.

Jason C.

FreeStocksTips said...

XSNX trading like mad today. New all time high. This company is now over 300 Million in market cap.