Subsidies for installing solar power systems on low-income housing developments would be provided by legislation passed by the Assembly Utilities and Commerce Committee April 25. AB 1383, by Assemblymember Fran Pavley (D-Agoura Hills), passed on a 7-3 vote. It would allow affordable home developers to offset up to 75 percent of the cost of solar power systems installed?25 percent above the current photovoltaic (PV) subsidy paid for from the ratepayer-funded public-goods funds. This measure would allow subsidies for both PV and solar thermal power. Less than 1 percent of the current $135 million allocated for solar rebates of $2.80\/watt has gone to low-income developments, Pavley said. Since March 2003, the California Energy Commission has approved 327 affordable-housing rebates, according to the bill analysis. AB 1383 would require the California Public Utilities Commission to assess whether rates should rise to pay for this program and to look at other potential funding sources. The cost of a large increase in rebates for residential solar systems is a highly contentious issue, threatening to thwart the governor?s two-year-old plan to install solar-powered systems on one million roofs.