California Ready for Take Off
Strong steps made to policy framework to accelerate solar
 By Bettina Weiss
Sr. Director, SEMI PV Group, Alfonso Velosa III, Gartner, and Jamie Girard, SEMI
In order to build a sustainable market for solar energy in California, the right state polices must be in place to correctly incentivize wide scale implementation of solar technology. Two of the biggest hurdles that are faced with installing solar come from the upfront cost of purchasing solar PV, and ensuring that the price of the electricity generated is cost competitive with conventional technologies. When the advantages of solar are built into that price (i.e., no carbon emissions or other pollution) solar energy can compete with any conventional technology and will be profitable.
California has taken a big step to that solar is given the opportunity to compete with conventional technologies with the passages of SB 32. Signed into law in 2009, this bill directs the California Public Utilities Commission (CPUC) to approve standard contracts and pricing for renewable energy generators. The price for the contracts is to be set based on the wholesale price of energy, and is to take into account benefits like reducing carbon emissions, less infrastructure (transmission lines), and generating electricity during hours of peak demand.
The challenge ahead remains to help the CPUC understand the true cost and benefits of solar generated electricity.
To that end, the California Solar Energy Industries Association (CALSEIA) released a study on Feed in Tariff (FIT) pricing showing that the value of renewable generation is between 5 and 12 cents per kWh over the wholesale price of electricity from natural gas.
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