Pleasanton Largely Unaffected As State Slows Solar Project Incentives

Pleasanton will largely avoid the impact of a recent halt to incentives for solar-related projects that has slowed down construction across the state.

The California Public Utilities Commission voted in early July to postpone rebates to all public and nonprofit projects to install solar panels.  According to the ruling, the commission said the temporary suspension is needed so that members can reconsider the amount of incentives doled out through its $2.2-billion program, the California Solar Initiative.

The only solar project in Pleasanton that may be affected is a 13.1-kilowatt system that the city recently signed a contract to build on the roof of its police headquarters, according to Operations Services Director Daniel Smith.

The project's rebate would have been $13,000 but that amount is subject to change because of the statewide reevaluation.

"It sounds like the program is running low on money and the rebate may be reduced," said Smith, who added that the $98,000 police headquarters project is on-schedule and will be completed within a few months.

The police headquarters project is mostly funded through a $88,000 grant.

Pleasanton is already receiving rebates for a $1.7 million project near its operations services center that was completed in January.

A Cupertino-based company was contracted for the project and installed 1,568 solar panels spread across the roofs of what used to be four corporate buildings. Savings from the 300-kilowatt system amount to $144,000 every year.

The city will continue to receive rebates for the next five years, which will equal to  $700,000, Smith said. The commission's latest ruling is only applied to applications received after July 9, so rebates for the operations services solar project are not impacted.

This year, the commission received the highest number of new solar initative projects in a six-month period since the program began in 2007, according to a CPUC press release.  The number of applicants from January to June would amount to 300 megawatts of solar power. 

In April 2010, the commission received its highest monthly total of applicants, amounting to 134 megawatts of solar power.

"Since its inception in 2007, the CSI has consistently seen robust levels of demand for solar rebates," the CPUC stated.

Because of quickly rising demand, the commission has repeatedly adjusted its incentive levels, which began as a statewide $2.50-per-watt incentive in 2007 and is now as low as 65 cents per watt.

The commission's suspension will be in effect for up to three months as members discuss and gather input on reduced incentives.