A renewable program to subsidise the installation of solar water heater has been confirmed according to new regulations in California. The total allocated sum for the program is $350 millions, and the motive is to reduce the level of greenhouse emissions.
The package is devised by allocating $250 million to substitute hot water heater using natural gas and around 100 million to replace electricity ones by the solar water heater. The solar water system works by having a storage tank on the roof and this tank is heated directly from the sun to provide warm water.
California’s 3 largest utilities will be provided with rebates of 30 percent involved in the cost of installing solar water systems instead of the natural gas hot water heater. Moreover, commercial buildings will be given subsidies up to $500, 000 at maximum.
The “California Public Utilities Commission” maintains around 60 percent of the finance required for these mentioned installation of solar water heaters. A household using electricity water heater can be provided around $1, 010 for the installation of solar water systems, whereby commercial buildings using electricity heaters can be provided with a maximum of $250,000. However, according to estimations only 10 percent of the water heaters in California are fueled by electricity.
The prime objective of the project is to install 200,000 solar water heating systems which will avoid 585 therms of natural gas. The project should by 2017, account for 150 MW, which will be reached at a decreasing rate over the years the program will be implemented. This implies that most effects will be achieved in the launching years.
Michael R. Peevey, president of the utilities commission said that “Today’s decision will increase consumer confidence and understanding of solar water heating technology and its benefits”
This pragmatic initiative is supposed to boost the market for solar water heaters, which last experienced its peak some 30 years ago in association with oil embargoes in 1970s to 1980s. However, subsides were removed by the federal government as the crisis stopped and many businesses in the solar water systems faced insolvency.
According to Terrie Prosper, a spokeswoman for the utilities commission, added that other states are also providing solar water heater incentive programs for example in Arizona, Florida and Hawaii.
Source: New York Times
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