CleanTechnica is the #1 cleantech-focused
website
 in the world. Subscribe today!


Green Economy install

Published on October 10th, 2010 | by Susan Kraemer

10

PG&E Solar Rebate Flatlines Just as Average Homeowner Hears About it

Share on Google+Share on RedditShare on StumbleUponTweet about this on TwitterShare on LinkedInShare on FacebookPin on PinterestDigg thisShare on TumblrBuffer this pageEmail this to someone

October 10th, 2010 by  

The solar rebate in California’s PG&E utility district just dropped yet another step to just $350 per kilowatt installed – 35 cents per watt – dooming new solar homeowners to higher costs today than those who got in while the combination of high CSI incentives (and solar-glut panel prices) cut the cost of doing the right thing.

The California Solar Initiative or CSI rebates are administered through the big three electric utilities in the state. The PG&E rebate initially started at $2, 500 per kilowatt installed, so for example, building a 3 kilowatt system got $7,500 off a few years ago. Now that same 3 KW system will get only $1,050 off.

Technically, all three California utilities that participate in the CSI program are still in Step 7, which provides a rebate of $650 for each KW installed, but in Northern California’s PG&E territory, there are more systems halfway through the approval process than there are approvals left.

PG&E has already put word out to the solar industry that they need to start quoting based on Step 8 rebate levels, because of this. There are still 4.61 MW of solar systems to be approved before the next step down is triggered, but 6.41 MW of systems are already under review.  Even for many people who have not yet got their permit, their rebates will be at the lower Step 8 level of just $350 per KW.

The basis for the California Solar Initiative step down to level 8 incentives is that solar is now mass-market-ready. As someone who works in solar, I disagree.

Most people have had no knowledge that rebates exist. For incentives to work, people must know about them. The average homeowner is only just beginning to hear that there are incentives.

In the 1950’s the whole country watched Walter Cronkite, and saw the same advertising. All the news and advertising was percolated uniformly through society. Now, we are a nation of ignoramuses. Clever ads tell us more and more about the subjects that we previously showed interest in. And that’s just if we don’t block online ads altogether!

Now news actually percolates much MORE slowly in a post-advertising media environment. Advertising online is now completely personalized to the interest of the reader. If you are interested in Britney and Lindsay, you’ll see handbag ads (or may be rehab ads) and you”ll know more about these things.

How sad that just as the news of the PG&E rebate has begun to percolate to the mass market, it is yanked away. Only when Britney gets her CSI rebate will California be ready for a mass market in solar PV.

Image: Lauren Keith
Susan Kraemer@Twitter

Keep up to date with all the hottest cleantech news by subscribing to our (free) cleantech newsletter, or keep an eye on sector-specific news by getting our (also free) solar energy newsletter, electric vehicle newsletter, or wind energy newsletter.



Share on Google+Share on RedditShare on StumbleUponTweet about this on TwitterShare on LinkedInShare on FacebookPin on PinterestDigg thisShare on TumblrBuffer this pageEmail this to someone

Tags: , , , ,


About the Author

writes at CleanTechnica, CSP-Today, PV-Insider , SmartGridUpdate, and GreenProphet. She has also been published at Ecoseed, NRDC OnEarth, MatterNetwork, Celsius, EnergyNow, and Scientific American. As a former serial entrepreneur in product design, Susan brings an innovator's perspective on inventing a carbon-constrained civilization: If necessity is the mother of invention, solving climate change is the mother of all necessities! As a lover of history and sci-fi, she enjoys chronicling the strange future we are creating in these interesting times.    Follow Susan on Twitter @dotcommodity.



  • http://www.CalSolarEng.com California Solar Engineering

    As another solar company we couldnt agree more! Solar is surely catching on, thankfully, but it is no were near mass market because it is still way too expensive. once the $/watt goes down a bit more people will be able to afford solar with out the rebates, but until then why shouldnt solar get the decade to incentives that our fossil fuels are still receiving?

  • Brian

    As a solar sales rep for the past 2 years I can tell you that PG&E has done a great job of funding the rebates in a timely manner. I have been selling 8 to 9 systems in PG&E territory per month for the past 2 years. The rebates were always scheduled to go down. This isn’t PG&Es fault, this is a scheduled drop based on how much the state of California was willing to fund. Most people in the solar industry have been diligently on the phone talking to people, but only about 5% of homeowners we talk to either qualify for solar or are even interested.

    • http://cleantechnica.com/author/susan Susan Kraemer

      Yeah, I quite agree. PG&E does a great job for solar. Although it is generally called the PG&E rebate up here it is actually funded by the state of California through the CSI, and the steps down are not PG&E’s decision, that was just the state assuming that by the time we had this many MW installed, we would be well on the way to market ready. But I don’t think that is true. In fact your experience is an example of that.

  • Alex

    Britney who?

    • http://cleantechnica.com/author/susan Susan Kraemer

      See? Ignoramuses, all of us.

  • Roger Lauricella

    Susan:

    In the Desert area of Palm Springs where I work and are involved in Wind and Solar (now), there is considerable competition and advertisement to the public about the CSI rebate structure (mostly its benefits) both through the old MSM (newspapers ,radio, billboards and TV) and on the internet. These advertisements are slightly less in number in the Los Angeles area but nevertheless they are all around. The main problem seen down here is ensuring enough up front available financing is in place to await the state CSI and federal rebates coming in after paperwork is filled out. The more astute businesses installing and selling solar are getting the Chinese (who tend to provide the panels) to front the financing on the front end with some equity position on the backend. CSI rebates after about what appears is a long time but is really short is finally coming in at 90-120 days and the feds have finally started paying at 90-120 days also. The Fed Audit dept of the Inspector General for the Treasury just came out to do the first audits of installations (to ensure they were actually installed) in the Inland empire. As usual it appears a bureaucracy created (either by the State or Feds) to cover something took a while to get off the ground. The feds that we saw hinted they would have been here sooner and the process might have been smoother and quicker but they had rules requiring them to draft regulations that they did not have in place before moving forward. It must be said its not SOCAL Edison that is leading the charge here in SOCAL for any rebates or advertisement of rebates, its the private entrepreneur that is in business to make money from solar installations and/or leasing arrangements. I am not sure you can really count on the Utility (SOCAL ED or PG&E) to take the lead if for instance someone like SOCAL Edison here is more hyped on their larger 100+MW rooftop projects in the Inland Empire than smaller installations not owned by them. Whether you agree with what PG&E does in terms of count against Step 7 or Step 8, what do the rules for the Legislation say for CSI, they are probably written to give PG&E the right to reconfigure the way they wish. As a side note, someones interest in solar panel installations (whether on a business or home) comes more from seeing an actual installation in ones neighborhood or on a colleagues business and then asking how one can do it also. This seems to be what we see playing out regardless of any advertisements on either the MSM or internet. Who will pay for your Walter Cronkite expansion of information Susan?? If it’s not written into the legislation and funded (oh, yes we do have a funding problem and budget problem in Taxifornia) who will do it but the entreprenuer who can make money from the installations. Those entreprenuers tend to be area or regional focused expect for a few very large ones who are using the MSM and new media for dessimination of their message.

    • http://cleantechnica.com/author/susan Susan Kraemer

      Roger, billboards are about what’s needed, all right. But you and are surrounded by ads on the internet for energy, because that’s what we read and write about on the internet. You are probably imagining that everyone is exposed to all that,but a lot of places use ‘relevant ads’

      It does seem inconceivable to me, just how little people know about these rebates, given how I am surrounded by a wealth of info on this sort of thing. But it was what made me start thinking about the information ghettos we are all in.

  • Pingback: PG&E Solar Rebate Flatlines Just as Average Homeowner Hears About it – CleanTechnica « SolarRetailer.org

  • http://www.forwardenergysolutions.com/ Energy monitor

    That’s quite the drop, I haven’t been impressed by what I’ve seen from PG&E lately

    • http://cleantechnica.com/author/susan Susan Kraemer

      Well, that drop is all the way through Step 1 through Step 8. Step 1 was about 2 years ago

Back to Top ↑