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
PG&E	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
CCSE	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).