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Due to a sharp decrease in the price of solar panels, the cost of installing solar energy in California continues to fall. A new report from the Lawrence Berkeley National Laboratory, located at U.C. Berkeley, found that the per watt cost of small rooftop photovoltaic (PV) systems with less than 10 kilowatt capacity declined nationwide from $12 in 1998 to $5.30 in 2012.

In California, the price per watt of installation for small systems dropped from $6.40 in 2011 to $5.70 in 2012.

The report credited 80 percent of these price reductions to the fact that solar panels themselves are becoming cheaper. Between 2008 and 2012, panels dropped by $2.60 per watt. Other factors, referred to as “soft costs” which include employee wages, permitting fees and other equipment needed for installations, remained relatively flat over the same period. The study’s authors pointed out that further reductions could be achieved if these expenditures were lowered through public policy.

“Soft costs are especially important from the perspective of public policy efforts,” said Galen Barbose of Berkeley Lab’s Environmental Energy Technologies Division, and one of the report’s co-authors, in a news release. “Unlike module prices, which are established based on global supply and demand, soft costs can be influenced more directly by local, state and national policies aimed at accelerating deployment and removing market barriers.”

Among the proposals that have been put forward by solar energy industry advocates and lawmakers are reforms to the licensing and permit process to make it more streamlined. There have also been calls to reinvest in the California Solar Initiative, funding for which has largely been spent. But even absent these solutions, it’s clear that a solar electric system is becoming more affordable and accessible to a larger share of the population.

Since the beginning of the year, utility companies have been making headlines with their efforts to eliminate the Net Energy Metering (NEM) program for solar in California. But now, the utilities are making headlines with a new topic: AB 327. This bill can also be seen as a direct threat to the solar industry.

Sponsored by California Assemblyman Henry Perea and backed by Big Energy, the two main goals of the bill is to 1) eliminate the NEM program and phase out the thousands of solar customers who are currently part of the program and 2) level out the tiered pay structure for utility companies including Southern California Edison. In order to accomplish the latter, the utilities would charge all ratepayers a mandatory $10 monthly fee or $120 annually. This fee is for merely accessing the grid and would be in addition to the charges for monthly electricity usage.

Those behind the bill argue that a monthly surcharge is necessary to pay for fixed costs lost to customers who utilize solar energy. Additionally, they claim to need the funds to maintain the state’s transmission grid and prevent outages.

However, solar advocates and those in the solar industry interpret the bill differently. In effect, the utilities are proposing to shift costs now incurred by high rate payers by increasing costs for low rate payers.

What makes this effort unusual is that this charge will be placed into law by the legislature, rather than through due process at the California Public Utilities Commission (CPUC). If passed, legislating similar fees will certainly be considered a path to success in the future by utility lobbyists, and may lead to additional surcharges for whatever utility stockholders believe is possible or necessary to improve the monopoly’s bottom line.

It should come as no surprise that energy monopolies are pushing so strongly for a bill at this point in time. In the last few years, residential “rooftop” solar has experienced explosive growth as many households have chosen to go solar and generate their own renewable energy.

The Net Energy Metering program — which allows solar owners to receive credit for any over-production — has been a large incentive for many to go solar and since the program was instituted in 2007, thousands of solar customers have signed up. By eliminating the NEM program, the utility companies will not only take away a major incentive for potential solar customers but will also renege on a contract that they already signed with those already enrolled.

In addition, the monthly mandatory fee will affect many potential solar customers whose incentive is largely financial. Many of those who are currently interested in solar are getting charged a lot for electricity in the higher tiers. Therefore, they install solar panels in order to reduce their consumption and lower their utility bill.

If AB327 does in fact pass, then the financial incentive to go solar will be severely reduced for small and modest users of energy, and diminished as well for larger users. The average ROI (return on investment) in the first year will decrease by as much as 10% for average consumers (from a modest first year return of 9.7% to 8.6%). Moreover, the payback period for a solar system (now around 5-7 years for most solar installations) will increase to 8-10 years or more, hindering many potential consumers from going solar.

What can we Californians do to fight against AB327? Join AMECO Solar, CALSEIA and thousands of solar supporters by calling your Senator (find out who your Senator is by visiting this website) and asking them to, “Protect All Net-Energy Metering Customers”. Then, spread the word to your friends and colleagues by tweeting, posting on Facebook or sending an email with a link to this blog post. The bill will be voted on this Friday, August 30 so be sure to take action today.

A major challenge for states like California that are trying to meet renewable portfolio standards (RPS), standards which dictate the minimum percentage of electricity that a state needs to derive from renewable sources, is to find energy storage options that are both affordable and effective.

The main issue is that renewable technologies such as Los Angeles solar and wind power generate a lot of electricity at certain times of the day, and none at others. Particularly with wind energy, the electrical grid needs to be able to handle massive fluctuations in electrical production in a way that it is currently incapable of doing. This is due to the absence of battery technology that can be scaled to such sizes that it can handle gigawatt-hours of energy.

Reuters reports that California Governor Jerry Brown told attendees at the InterSolar Conference in San Francisco that Californians can’t simply rely on sunlight for power, saying that “we’ve got to bottle the sunlight.”

Fortunately, many companies are entering a heated race to develop batteries that can handle large amounts of grid electricity. These include LG Chem, a large-scale battery maker, in addition to more well-known companies such as General Electric, and investors Peter Thiel and Bill Gates. Brown put forward a proposal that would increase the state’s commitment to funding battery tech, which many see as the principle obstacle to wider integration of solar energy into the electric grid.

The more progress these firms can make on this front, the more Californians will be able to benefit from this great energy source.

The two main arguments that are often cited in favor of Los Angeles and Orange County solar power are economic and environmental. By going solar, residents and businesses can reduce and potentially eliminate their electricity bills. In doing so, people also help improve the planet’s climate by decreasing carbon dioxide emissions.

Those two reasons alone are enough to justify widespread adoption of solar power for electrical generation, but something that often goes unmentioned is the way that solar technology can help boost public health.

The reasoning is simple. Burning fossil fuels not only produces carbon dioxide but other forms of air pollution that can cause serious respiratory illnesses in children, adults and seniors. Even natural gas, which burns much cleaner than coal, still releases toxins into the air that can exacerbate health conditions such as asthma and obstructive pulmonary disease. According to Scientific American, particulates emitted from fossil fuel power production is estimated to cause 59,000 cases of acute bronchitis and 603,000 asthma attacks annually.

While this is a problem in many communities spread throughout the U.S., EarthTechling, a clean technology news site, points out that seven of the ten worst counties in the nation in terms of air pollution are located in California. Much of this air pollution comes from the production of electricity, and could be eliminated through greater reliance on solar power.

When considering the merits of having a rooftop PV system installed on your home or business, along with the environmental and financial advantages, keep in mind that you’ll also be contributing to improved public health.