Solar Hot Water returns to California!

01/21/2010

California announced this week that it again has a solar hot water program after a multi year run with the Solar Hot Water Pilot Program in San Diego. It has been decades since the state has provided incentives for solar hot water and many years since substantial systems have been built. Here is a quick FAQ on how the program will be run.

Who is eligible?

Everyone who is a customer of the large gas and electric utilities in the state is eligible. The program is a rate payer funded program and the funds come through the large utilities (SDG&E, PGE, SoCalGas, etc...). The program administration however will come through an organization called CSI-Thermal, to mirror the organization CSI ("California Solar Initiative") which jump started solar electric installations in the state.


How large is the incentive?

The incentive will be based on how much natural gas or electric your system will save. The incentives are larger for gas than electric, but are approximately $12 per therm for estimated savings in the first year. (approximately 40 cents per thermal kWh). For a typical residential system, the incentive will be approximately 1000-1500 dollars.


How much do systems cost?

The CSI estimates that a solar hot water system for a single family home could cost in the area of $6000.

We find that question more complicated. Asking how much a system costs depends on the size of the system, the quality of the materials, length of the warranty coverage, and importantly, the amount of government and programmatic compliance costs. Altadena Energy & Solar intends to work with local officials and the CSI Thermal Program Office to lessen the compliance costs for systems, so that they are affordable for customers.


Our Analysis of the Program

Altadena Energy believes it is good state policy to provide incentives for green energy & to encourage the migration towards efficiency. At our current standpoint, it is sound from many perspectives:

1) California recognizes that global warming presents very specific challenges to the state, especially regarding snowpack & state water supply. We need to work in our own best interest!

2) Providing money to use green energy provides job and keeps more of California money in California - Rather than paying for imported natural gas, we can pay our fellow Californians to build solar hot water systems. That provides skilled jobs to our state, and reduces our export of money for fuels.

3) Solar is a sound investment in our future - Solar systems are productive systems that will pay for themselves many times over. They limit the emissions of each household or business that installs one, and provides a hedge against future inflation from fuel cost escalation.


Our Response

AES is currently a solar hot water and thermal system provider in California & Virginia, and provides equipment to installers in other eastern markets. We've cut our teeth on solar design in Germany, among the most technically and programmatically advanced solar thermal market. We bring a depth of experience to our projects and to this market.

We look forward to working with CSI Thermal staff, local building officials, and customers to bring quality solar thermal and solar hot water systems to the local market, for the benefit of Californians.

-hwr
01/23/2010