The federal energy bill was good news for the governor's Million Solar Roofs initiative, which is getting closer to the finish line. If the state measure, embodied in SB 1, passes, photovoltaic system installers could take advantage of the maximum $2,000 tax credit in the federal energy package. Also, the tax credit, which expires at the end of 2007, could be in addition to the California Energy Commission's photovoltaic rebate, Dan Skopec, the governor's deputy cabinet secretary, said during a California Manufacturers and Technology conference held July 28. The Energy Commission has the flexibility to decide whether homeowners and businesses that install PV systems would be able to take advantage of both the tax credit and the rebate, he added. The CEC can also decide whether to raise or lower the commission rebate. The amount of the subsidy will turn on an assessment of the incentive level needed to encourage installation of sun power systems. The CEC has been reducing its photovoltaic rebate—which is currently $2.80\/watt—by about 20 cents every six months. The advantage of the lower rebate is that it increases the reach of the buy-down program, according to Marwan Masri, CEC renewable energy program director.