Solar Energy Expands in California

A solar energy boom is taking place in California’s organized electricity market. Nine solar energy projects have been proposed in the state, totaling 4,300 megawatts (MW) of solar power – a remarkable total considering the total installed solar power capacity of the entire country totaled just over 2,000 MW in 2009.
 
California has already been leading the way in America’s solar energy market through a mix of private investment and regulatory oversight. It topped the list of both installed capacity and cumulative installed capacity in 2009, and already reached 42 percent of its goal of 3,000 new MW of solar energy by 2017.
 
This new boom is already showing results. The 1,000 MW Blythe Solar Power Project in southeast California has been approved for construction, and when completed will produce enough electricity to power over 800,000 homes. The total price tag is estimated to be slightly in excess of $6 billion, but the benefits extend beyond creating green jobs. Blythe “will take some 2 million tons of carbon dioxide out of the atmosphere every year,” said Uwe Schmidt, executive chairman of project developer Solar Millenium. “We will be doing our part (in) improving the overall environment of the planet.”
 
The mix of a well-structured market and effective state policies is quickly pushing down the price of solar energy. For every dollar the state has spent on solar, another $2.62 was invested from other sources. The price of solar systems in the state has dropped from $10.04/watt to $8.49/watt, and state incentives have dropped from $2.50/watt to as low as $0.65 watt since the California Solar Initiative (CSI) launched.
 
As more projects come online and technology advances, alternative generation sources like solar energy will move closer to cost parity with traditional energy supply technologies. Our nation’s competitive electricity markets offer advantages to clean energy generation and stand ready to help move toward a low-carbon future.

Joel Malina | October 12, 2010