Sun shines on California's solar power programme

SAN FRANCISCO -  The California Public Utilities Commission has approved a US$2.9 billion ($4.23 billion) programme to make California one of the world's largest producers of solar power.

The "California Solar Initiative", backed by Governor Arnold Schwarzenegger, aims to add 3000 megawatts of solar energy over 11 years through the installation of 1 million rooftop solar energy systems on homes, businesses, farms, schools and public buildings.

That amount of electricity would be equivalent to about six new power stations.

The measure was approved on a 3-to-1 vote with one commissioner recusing himself because of a possible conflict of interest.

Michael Peevey, president of the commission, said the effort "is designed to create a sustainable solar industry" and to demonstrate California's leadership in moving to reduce dependence on fossil fuels.

If the programme is fully implemented, California would become the world's third-largest solar generator behind Japan and Germany. The state has about 100 megawatts of solar electricity.

The programme will offer rebates for adding solar systems and is expected to boost makers of solar power generating cells and panels.

An industry official said the commission's decision would give investors more certainty about the future of solar electricity.

The money for the programme will come from existing funds already earmarked for solar energy and gas and electric utility rates.

The average residential utility bill would go up by 65 cents a month, according to Environment California.

Solar spending could save California utility customers an estimated US$9 billion from a reduced need to build new power plants and buy electricity supplies during high demand days in the summer, according to a commission report.

Schwarzenegger pushed a solar energy bill in the state legislature last year, but it stalled amid policy disputes and amendments.

- REUTERS