Special interests shouldn't be allowed to eclipse legislation making solar water heaters a better deal
If there's one natural resource that California has in abundance, it's
sunshine. Yet it's astonishing how few residents take advantage of this
free, nonpolluting energy source. Last year, only 1,000 solar water
heaters were installed in the entire state. A sensible Assembly bill
could make solar power more attractive while discouraging consumption
of carbon-emitting natural gas, but it first has to get through the
state Senate.
AB
1470, from Assemblyman Jared Huffman (D-San Rafael), is a companion to
a similar bill that was approved last year after being heavily touted
by Gov. Arnold Schwarzenegger. That one, SB 1, imposed a surcharge on
electric bills to subsidize the installation on homes and businesses of
solar panels that generate electricity. This one would create a
surcharge on gas bills to subsidize solar water-heating systems.
The cost to power consumers is very small; AB 1470 would add only about
13 cents a month to gas bills, according to the California Public
Utilities Commission. But the benefits are potentially great. Solar
water-heating systems reduce the need for natural gas by up to 75% per
building, and that doesn't just benefit the owner of the solar water
heater. The lowered demand for natural gas would produce lower gas
prices even for those who don't go solar, while cutting greenhouse gas
emissions.
Solar
water heaters cost between $4,000 and $6,000 for a residential system.
That price could be cut in half using an existing federal tax credit
combined with the state subsidy created by Huffman's bill, which would
generate $250 million over 10 years. At the lower price, consumers
could recoup their costs via lower gas bills within a decade. And once
the technology becomes more common, its price will drop, eventually
rendering the subsidy unnecessary.
Gas companies, including
Southern California Gas Co. parent Sempra Energy, are heavily opposed
to AB 1470, as is the California Chamber of Commerce. The utilities
claim to be worried about the effect on gas consumers, but their real
concern is pretty transparent. They stand to lose
money if their customers start taking advantage of free solar energy
rather than buying their natural gas.
The bill was approved last
week in the Assembly but is expected to face a tougher fight in the
state Senate. A bright solar initiative like this one must not be
derailed by the narrow interests of a few gas giants.
