Photovoltaic Systems For Profit

Say what you will about "Der Governator" Arnold Schwarzenegger

, but when it comes to energy and the environment, he, unlike most of his fellow Republicans and a host of "blue dog" Corporate Democrats, actually gets it. For the past several years, Governor Schwarzenegger has been going against the grain by putting in real incentives for Californians to switch to renewable energy sources, such as photovoltaic solar panels.

Carrots, Not Sticks

One of the incentives that Sacramento has been offering to California businesses is tax credits for installing renewable energy sources. When a business, operating in one of the state's 42 "enterprise zones" installs photovoltaic solar panels, the owner can get a substantial tax break and in some cases, these are retroactive. However, until recently, there have not been similar incentives for individuals.

Taking PG&E To Task

There aren't many California homeowners who have been able to totally "zero" their utility bills with the use of photovoltaic systems alone, but some have. Unfortunately, utilities that get more electricity back from a homeowner than they provide have not had to pay anything for the extra energy that is fed back into the grid until now.

Recently, Assemblyman Jared Huffman of Marin County authored Bill 920, which requires utility companies like PG&E to pay customers who, through the use of photovoltaic solar cells, actually produce more electricity than they use. This bill has now been signed into law by Governor Schwarzenegger.

It's Nothing New

This model, known as "feed-in tarriffs," has been used in Germany for many years. The German government subsidizes homeowners for the cost of installing photovoltaic systems and provides low interest loans that can be repaid over an eight-year period. These homes sell their excess energy back to the utility, and this revenue is used to repay the loan. The result is a win-win situation for everyone and German homeowners get their photovoltaic solar panels virtually free.

In the United States, such programs are dismissed and even derided as being "socialist." Be that as it may, it's worth noting that Germany is not addicted to Saudi Arabian oil nor is the German government obligated to drain its treasury by stationing its military around the world to protect oil supplies.

It is said that as California goes, so goes the nation, however. Perhaps once the Golden State demonstrates the effectiveness of feed-in tariffs, the rest of the nation will follow suit and begin to wean itself off its decades-long dependence on foreign oil.

by: Wayne Hemrick

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