California to Subsidize Solar Water Heaters

[depakid]

California regulators on Thursday approved a $350 million program to subsidize the installation of solar water heaters to reduce greenhouse gas emissions.

The program will allocate $250 million for the replacement of hot water heaters fueled by natural gas and $100.8 million for those powered by electricity.

Solar hot water systems typically consist of a storage tank and a rooftop array that collects heat from the sun to warm the water.

Customers of California’s three big investor-owned utilities will receive rebates of up to $1,500, or about 30 percent of the cost of replacing a residential natural-gas hot water heater with a solar system. Owners of multifamily commercial buildings are eligible for up to $500,000 in incentives.

The California Public Utilities Commission reserved 60 percent of the funds to install solar hot water systems on those buildings, with the balance going to single-family homes.

Homeowners with electric hot water heaters can receive up to $1,010 to install a solar hot water system and owners of commercial buildings will get up to $250,000. Only about 10 percent of hot water systems in California are electric, according to the utilities commission.

The program’s goal is to replace 585 therms of natural gas -– the equivalent of installing 200,000 solar hot water systems — and 150 megawatts of electricity by 2017. Incentives decrease over the eight-year life of the program.

More: http://greeninc.blogs.nytimes.com/2010/01/21/solar-water-heaters-get-a-boost-in-california/

[Bobbieo]

1. My water heater run on solar power lasted almost 28 years - the average life

of a water heater is about 8 years. It was replaced last week with a six year warranty. A fluke, perhaps, but I don't think so. It serviced 3 people.

[kelly1mm]

2. Are these funds coming from the utilities or from the taxpayers? Either

way it is a good goal but last time I checked CA is BROKE and asking for a federal bailout. If it is coming from a surcharge on the utility companies then I suppose it is OK (unless they pass it on as a green charge or something) but from the state funds I would oppose it at this time. Again, worthy goal but not the right time.

[kristopher]

3. So without knowing the economics you condemn the program?

Have you considered the possibility that it saves money?

[bhikkhu]

4. There's never a right time, its more about priorities

Solar water heaters are really a no-brainer in CA, simple tech that's been around a very long time. Getting them back in the mainstream should do a great deal for the long-term health of the energy economy there.