A blog on using the power of Disruptive Business Models to build successful businesses...and other stuff. by Joe Agliozzo

Thursday, January 17, 2008

California Solar Initiative Subsidies are Going Fast!

California Solar Initiative Subsidies are Going Fast!

Here's the latest numbers:

January 2008 Opens with High Solar MW Reservations
TRIGGER TRACKER SNAPSHOT FOR
JANUARY 15, 2008
Administrator
Customer
Current Step
MW in Step
MW Under Review
Residential
3
14.40
2.08
Non-Res
4
38.10
17.85
SCE
Residential
2
10.60
1.31
Non-Res
4
40.10
21.09
Residential
3
3.40
0.28
Non-Res
4
9.00
1.86

As you can see, Tier 2 is mostly gone throughout the state, and Tier 3 for commercial is only available in PG&E administrated areas. The question now is whether installed prices will drop fast enough to make up for the lowered subsidy, or will we see a "bust" - lack of new solar projects now that the high subsidies are all reserved?

Also at issue is the 30% federal tax credit that expires at the end of 2008. There was no extension of the credit in the energy bill enacted in December 2007.

The first quarter of 2008 should be very interesting for observing announcements of new projects (or lack thereof).

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