CHRISTINE COTTER LOS ANGELES TIMES
Harry Pope of Long Beach, Calif., spent about $30,000 on a solar array several years ago. He has recouped about half the cost.
SACRAMENTO, CALIF. — Lis Sines of Hermosa Beach, Calif., loves watching her electric meter run backward.
When that happens, she knows that the 20 solar panels on her roof are producing more power than she needs to run her 3,800-square foot home. The excess electricity flows to the electric company's grid, and she receives its full retail value credited to her utility bill.
Sines' electric bill has plunged since she and her husband, William, installed a photovoltaic system on their roof three months ago. In June the bill totaled just $1.26, compared to about $100 a year earlier.
But the Sines' subsidy may not be available to future solar-power users for long.
The state's $3.3-billion solar subsidy program has become so popular that the state utilities are approaching the legal limit for how much power they can buy from customers.
10% limit proposed
The limit could be reached in parts of northern and central California served by Pacific Gas & Electric Co. by the end of this year. The state's other two investor-owned utilities, Southern California Edison Co. and San Diego Gas & Electric Co., are proceeding somewhat slower.
Eager to keep the program growing, the solar industry is pushing for approval of legislation In Sacramento that would quadruple the amount allowed. The state's for-profit utilities oppose the higher cap in the bill by Assemblywoman Nancy Skinner, a Berkeley Democrat.
A key Senate utilities committee vote on the measure is expected soon. Currently, utilities are limited by state law from buying from its customers more than 2.5 percent of a utility's maximum generating capacity. Skinner's bill would lift the cap to 10 percent.
All three companies oppose Skinner's bill. They do not want lawmakers to
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raise the limit until next year at the earliest, after the California Public Utilities Commission tallies up the program's costs and benefits. Utilities say they strongly support solar power but want more information about whether it's fair to further increase financial incentives for solar-panel ownership. Such incentives, they point out, would come at the expense of most of the utilities' other customers, who don't want or can't afford to invest in the costly panels. “We want to make sure there isn't an unfair level of cost-shifting,” said Jennifer Briscoe, a spokeswoman for San Diego Gas & Electric. Fairness issues were also raised in a report on Skinner's bill by the staff of the Senate Energy, Utilities and Communications Committee, which will review the bill. Subsidy too high?The report pointed out that California solar-panel owners already benefit from a variety of subsidies approved in recent years — even without this “net metering” program, which allows people to sell power to the utilities. Solar power users receive a state subsidy of about 20 percent of the purchase and installation cost and a federal income tax credit of 30 percent. Adding more incentives could be going too far, suggested the committee staff analysis. The staff report also takes issue with the amount of credit that solar users receive when they sell power to the utilities. “By compensating the solar or wind customer at the full retail rate” for energy sold to the grid, “the utility is using ratepayer funds to pay the solar or wind customer at a rate well above the value of the generated power, which is about one-third of the total cost of the a typical residential customer's bill,” it said. The other two-thirds of the bill covers utilities' fixed expenses for building power plants and transmission lines, buying electricity from independent generators and meeting a variety of state mandates, including the cost of subsidizing low-income customers and solar-power system owners.
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