LADWP Proposes Solar Cuts While Embracing Renewables

The Los Angeles Department of Water & Power proposed deep reductions in incentives for photovoltaics in the coming years at the same time it has formally embraced a 20 percent renewables portfolio standard by 2017. ?Our commitment to this is long-standing, but we never envisioned it as a permanent subsidy,? said Dominick Rubalcava, president of the department?s board of commissioners. ?We?re not like the federal government; we can?t print money.? Solar advocates, however, persuaded the board to delay action until August 17. ?We waited 18 months for the program to restart,? said Peter Parrish, president of California Solar Engineering. He added he had only three days to respond to the proposed guidelines. The rules call for payments for systems rated less than 30 kW to decrease from $4.50/watt to $3.50/watt. Systems made in Los Angeles would qualify for an additional $1.00/watt, down from the current extra incentive of $1.50/watt. Large systems? subsidies would go from $4.50/watt to $3.25/watt, with an additional $0.75 cents/watt for systems made in Los Angeles, down from $1.50/watt. The department said that any installations it approves under the incentive program would have to be installed within six months or lose funding, even in the face of module order backlogs, which have developed throughout the state because of strong German incentives for photovoltaic modules ( Circuit , July 2, 2004). The guidelines also would eliminate incentives for building integrated photovoltaic systems. In its fiscal 2004-05 budget ( Circuit , June 11, 2004), the department allocated $15.8 million for the solar program this year, which is funded by its public-benefits charge. Projected solar program funding through fiscal 2010-11 is $79 million, of which the department anticipates spending $50 million on actual incentive payments. Since starting its solar program in 2000, the department has spent $72 million, including $43 million on incentives. The department stopped accepting applications for incentive payments more than a year ago after it developed a backlog of 523 applications. This fiscal year, the department anticipates it will be able to pay out only $7.1 million for 86 of those projects that will total about 2.1 MW of installed photovoltaic capacity. Most of the payments will be for small systems under 30 kW, but the bulk of the money will go for systems rated at more than 100 kW of capacity, the department said. The proposed cutbacks in the solar incentive program come as the department has begun work to implement a 20 percent renewables portfolio standard program by 2017 ( Circuit , June 11, 2004). Earlier this month, Los Angeles mayor James Hahn appointed a ?green ribbon commission? to oversee the department?s renewables plan. In addition, the department issued a request for proposals to provide 1.3 million MWh a year of renewable energy by the end of 2010, about 13 percent of its total projected power needs. Proposals are due by August 13.

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LADWP Proposes Solar Cuts While Embracing Renewables

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