The California
Solar Initiative’s (CSI) solar panel subsidy program will end for San Diego
County residents by the end of the year. Solar panel installers and CSI program
officials say that end of the program will not negatively affect solar panel San Diego sales.
The CSI program
was introduced in 2007 to provide subsidies for solar panels – it offers cash
back to those who installed solar panels on their home or business. As more
people purchased solar panels, the subsidies offered dropped through a series of
levels of decreasing prices. The project, with a budget of $2.167 billion, was
initially planned to last until 2016. However, the state’s solar panel
purchases exceeded the program’s expectations, causing the program to end early.
As the
subsidy declined, the cost of solar panels decreased. In fact, the cost of
solar panels decreased so much so quickly that some companies prefer to just
discount a customer's bill rather than fill out the detail application for the
subsidy. The solar leases, which are owned by third parties, have stolen the
market from traditional solar installations under the CSI.
Traditionally,
a person would buy solar panels and then get paid back when their panels produced
more power than they used, usually taking around seven years. With a solar
lease, companies like Solaire Energy Systems are contracted to install the solar
panels and keep ownership oft hem. Then the company, not the home or business
owner, collects the subsidy and is able to take advantage of a federal tax
credit – which should be available until 2016. In result, the home or business owner
gets a lower electric cost compared to the cost without using the panels. According
to the CSI, solar leases made up 76 percent of all installs in the San Diego
area last year.
California
is known for their progress in solar energy – in 2006 the CSI program made
international news. With the solar panel subsides decreasing as popularity for solar
leases increases, a solar market is being created that can sustain itself
without government help.
