California pushes a new plan to cut rooftop solar incentives by capping the average output of each solar system at 100 kilowatts. A previous version of SB827 could have allowed homeowners to receive a 100 kilowatt subsidy on up to three solar systems, meaning homeowners could have received more than $400 per property for their solar system.
California Gov. Jerry Brown (D) signed the bill earlier this week, but the final text of the measure still has to be reviewed and finalized by the Legislature.
“When the bill was recently signed into law, I was pleased to see that the price for rooftop solar has dropped significantly. We need this reduction to reach the level of what is needed in this country, and so we have made significant progress in lowering the cost at the state level,” Brown said in a statement Thursday.
“Today, we’ve made a major step forward for California and our state’s economy, by continuing to make the process of putting solar on our rooftops more affordable,” he added in a separate statement from the governor’s office.
“This will set the baseline for California, and I hope other states follow suit,” Brown’s statement continued.
The bill passed the state Assembly on a 47-4 vote after a marathon evening of negotiations, with only one Democrat voting against it.
But SB827 did not stop all solar subsidies to move to the state level, said state Sen. Jim Nielsen, who authored the measure.
The cap will still allow rooftop solar owners who generate more than 150 kilowatts of power to qualify for an investment tax credit of up to $1,500, as well as a 30 percent investment tax credit, which will now be limited to $7,500 per property, according to the California Energy Commission.
The bill will also continue to permit homeowners up to three qualifying rooftop solar systems above an additional 25 kilowatts per system to receive an investment tax credit of up to $10,000 per