Debate Over CA Home Solar Energy

Feb. 22 - KGO (KGO) -- With $3 billion dollars in rebates available, homeowners are suddenly anxious to take advantage of solar energy hoping to save a big chunk of the installation costs. So you may notice a lot of solar panels coming to your neighborhood soon, though some experts say, it may be a very big waste.

The sun is synonymous with California. This state produces 85 percent of the solar power generated in the United States. Now more homeowners want to zap in the energy on their own rooftops -- since the government is willing to finance a lot of the costs. This year, the California Public Utilities Commission is sweetening rebate deals and solar dealers say they see a huge surge in demand.

Brendan Neagle, Borrego Solar: "We continue to do more and more residential -- as people retrofit their homes and redo their roofs -- they're calling a solar company now."

Once a solar system is installed, PG&E comes out for free to connect you to the grid, by putting in a new meter that measures not only the electricity coming in, but the electricity you're putting out.

Paul Moreno, Pg$E spokesperson: "The net energy metering program allows customers to get a credit for their excess solar generation -- they can draw on it in winter months or at nights -- so that means you literally zero out your PG$E bill."

Fourteen thousand PG&E customers have the new meters.

Laura Peterson, Solar powered homeowner: "I think we're generating more power than we're using. We used to get bills in the winter time months on average of about $300 dollars to $400 a month -- now we're paying $40 dollars a year.

The Peterson family installed a six kilowatt system on their 2,500 square foot house in Berkeley for $40,000 dollars. But with a California Energy Commission rebate of $13,000 dollars, and a $2,000 dollar federal tax credit, they ended up spending only $25,000 dollars.

Laura Peterson: "We actually just got a new washer and dryer, and we put in an electric dryer, instead of a gas one, because we figured we might as well use the electricty that we're generating."

Severin Borenstein, UC Energy Institute Director: "They're very expensive to put in, and in the last couple of years have gotten more expensive, because there's a shortage of parts and because there is a big demand because California is throwing $ 3 billion dollars at the industry.

The director of UC Berkeley's Energy Institute believes the state is wasting its money on subsidies. He says currently solar panels are the most expensive way to generate energy.

Severin Borenstein: "Unfortunately, it's a bad policy whose time has come."

At the moment, solar seems to be politically correct.

Ted Walsh, SPG Solar: "It's a solution for everyone, not just people with huge electric bills, but people looking to conserve, be environmental."

The Clemens family just completed their solar installation last week.

Steve Clemens, Solar powered homeowner: "I don't think it's the finances that made us do it, it's more philosophical."

On their home in El Cerrito, they installed a 2.5 kilowatt system for $23,700 dollars. Minus a $6500 state rebate and a $2000 federal tax credit, going green cost $15,000 in the end.

Maria Clemens, Solar powered homeowner: "As soon as people start to learn that we've done it, they'll ask us questions, and hopefully we'll teach and model other people that this is the right choice."

Rebates are highest now and diminish over time as the state weans the industry and the public off the subsidies.

Borenstein maintains solar could be made much more efficient if we invested in science.

Severin Borenstein: "The money really should be going into research and development. To improve them."

Still the goal in California is solar panels on a million rooftops.

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