CPUC Constricts Photovoltaic Subsidies

While doubling its self-generation funds, the California Public Utilities Commission unanimously put a clamp on the amount available for photovoltaic subsidies in its December 16 meeting. ?It?s possible ratepayers are paying more than it?s worth,? commissioner Geoffrey Brown said. He said indications are that the current subsidy?$4.50/watt?is too high, adding that the subsidy comes from procurement funds, ?so it raises already high rates.? Photovoltaics subsidies will decrease to $3/watt after 2005. The maximum eligible capacity size of projects would be increased from 1 MW to 5 MW. After that, the commission could restrict subsidies further as there is some concern that the price paid for installations is keeping the cost of solar up instead of allowing it to decrease with economies of scale. ?For less than $3 a watt, utilities can buy almost any type of plant,? Brown said.

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CPUC Constricts Photovoltaic Subsidies

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