SOLAR GENERATION - Greenpeace

PART THREE: THE SOLAR RACE
State Initiatives in the US
Solar Initiatives in California
California is driving the US market for solar energy almost entirely
because of incentive programs offered through the state’s
electricity suppliers. The main subsidy programs are the California
Energy Commission’s Emerging Renewables Program - which
offers $ 3 per watt towards capital costs and resulted in 3,200 solar
installations in 2003 - the California Public Utility Commission’s
Self-Generation Incentive Program and programs run by Los
Angeles Department of Water and Power and Sacramento
Municipal Utility District. PV installations under these and a
handful of other small programs reached 14 MW in 2002 and 26
MW in 2003, with a total of nearly 79 MW installed by June 2004.
The California Energy Commission has also simplified the rules
and tariffs for net metering, and reduced the paperwork for
interconnection requirements for grid-connected photovoltaic
systems.
San Diego: The city of San Diego has committed to a first-of-itskind
clean energy initiative to meet the city’s growing electricity
demand. Under this plan, San Diego will generate 50 MW of clean
energy over the next ten years to meet the region’s projected
energy shortfalls and stop another energy crisis. The City is
expected to meet the majority of that demand with solar power.
This is the first time a major US city council has initiated such a
plan as the solution to its energy needs, and was a major victory
for the Greenpeace Clean Energy Now team.
San Francisco: In November 2001, San Francisco voters approved a
$ 100 million revenue bond for renewable energy and energy
efficiency that pays for itself from the savings, costing taxpayers
nothing. The bond pays for solar panels, wind turbines and energy
efficiency measures for public buildings. The money that would
have gone to buy electricity from power plants instead goes to
finance the bond.
University of California: The university is committed to install 10
MW of solar units across its ten campus network. Greenpeace was
instrumental in securing this commitment.
Other State Initiatives
• The state of New Jersey offers a $ 5.50/Wp subsidy for
photovoltaic systems. The Clean Energy Rebate Program has
budgeted $ 16.2 million up to 2008. The program has supported
(or reserved incentives for) 91 projects totalling over 3,300 kW
of power.
• Illinois: LLed by the strong "Brightfields” program in Chicago,
where abandoned ”brownfield" factory sites are converted to
either photovoltaic manufacturing plants (owned and operated
by Spire Corporation) or installed photovoltaic systems. The
state of Illinois passed the largest subsidy in the United States
for photovoltaic systems, $ 6/Wp. Over 1 MW of PV was installed
in the state in 2002.
• New York: New York has agreed over $ 50 million to support
new industry, new installations and studies to accelerate
commercialisation of photovoltaic systems. New York increased
the photovoltaic subsidy to $ 5/W in May 2002 for gridconnected
systems.
• Virginia: Virginia offers a $ 0.75/W cash rebate for installed
photovoltaic modules produced in the state. This program is
capped at $ 6 million per year.
• Connecticut: The Connecticut Clean Energy fund has allocated
$ 5.3 million in subsidies, with $ 5.75/Wp offered for residential
PV systems.
• Nevada: The Nevada Demonstration Program offers up to $ 5/
W for residential, small businesses, Indian tribes and schools.
The program has $ 20 million to distribute over 3 years.
• North Carolina: Carolina offers a 35% tax credit for photovoltaic
system installations.
• Ohio: Support for 50 public schools to have photovoltaic
systems/training modules installed.
Japan
• PV capacity end 2003: 860 MWp
• Support system: Various government programmes, including
grants for domestic PV roofs, and net metering support provided
by utilities
Renewable energy is seen as an indispensable part of Japanese
climate change policy and carbon reduction targets, as well as
an emerging technology to be exploited. Various supportive
policies to encourage growth in the renewables market have
been introduced by the government, including significant solar
research and development programmes from the 1970s
onwards. These policies have received backing from across the
spectrum of public bodies, academics, NGOs and the business
community. Japan now has PV systems on thousands of
schools, hospitals, factories, warehouses, offices, houses and
railway stations.
By the end of 2003 a total of 860 MWp had been installed in
Japan, with government plans for 4.8 GWp by 2010, an
ambitious target requiring an annual growth rate of 30%. The
annual growth rate since 1998 has been up to 45%, however. If
the current trend continues, 70 to 80% of installations in Japan
will be rooftop systems with an average size of 3.8 kWp.
The national Japanese programme is aimed at rapid expansion
in the number of units coupled with a decreasing percentage of
subsidy. The overall goal is to stimulate production, bring prices
down, create market awareness and leave Japanese industry
with a fully economic market which will encourage competitive
exports to the rest of the world. In pursuit of these objectives,
the budget for the residential PV system dissemination
programme was cut from $ 223 million in 2002 to $ 100 million
in 2003, and by a further 50% this year. This reduced the subsidy
per kWp from $ 862/kWp in 2003 to $ 430/kWp in 2004. Even so,
the market has continued to grow, the number of subsidy
applications increased during 2003, while the price for PV
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