California Funds Solar Water Heating Systems

A bill signed by California Governor Arnold Schwarzenegger would provide rebates to residents and businesses to support the installation of 200,000 solar water heating systems in the state by 2017. The bill, which takes effect on January 1, 2008, requires the State’s energy commission to evaluate data from a pilot project run by the California Center for Sustainable Energy; if the commission finds that a solar water heating program would be cost-effective for residents, it will establish eligibility criteria and set up a surcharge on natural gas usage to fund the program. Residents enrolled in savings programs for low-income natural gas customers will be exempt from the surcharge, and at least 10% of the proceeds from the surcharge will be set aside to fund installation of solar hot water systems on low-income residential projects. This initiative joins the California Solar Initiative, passed in January 2006, which aims to install 3,000 megawatts of photovoltaic systems in the state by 2017 (see

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Vol. 15, No. 2).