November 25, 2008

Los Angeles, CA, USA: Mayor Tables Long Term Solar Power Plan

Mayor Antonio Villaraigosa, City Council President Eric Garcetti, Councilmember Jan Perry and the Los Angeles Department of Water and Power today unveiled Solar LA. If implemented as proposed, it would be one of the country’s largest solar power plans. It is aimed at jump starting the green economy in Los Angeles with the installation of 1.3 gigawatts of solar power.

“It is time that we use our most abundant natural resource to create the electricity and the jobs we need for our future,” Mayor Villaraigosa said. “Today, we are turning up the heat and taking the next step to become a shining example of green growth worldwide.”

Solar LA, the largest solar project undertaken by any single city in the world, lays out a far-reaching course of action to create a 1.3 gigawatt solar network of residential, commercial and municipally-owned solar systems to replace more volatile fossil fuels during peak energy demand. As cities and countries worldwide struggle to deal with the devastating effects of climate change and curb their contribution to the global crisis, Solar LA will cut Los Angeles’ carbon emissions and give the City a steady supply of clean, renewable energy to power its future.

Solar LA also represents a major opportunity to turn environmental solutions into economic opportunities for Angelenos by investing in and stimulating the local economy. With every 10 megawatts (MW) of solar potentially creating 200 to 400 jobs, Solar LA will jumpstart Los Angeles’ cleantech economy by spurring green- collar jobs across a broad range of occupations: research and development, manufacturing, installation, maintenance and repair.

"Los Angeles is becoming greener and cleaner, and now we're launching the nation's most aggressive municipal solar plan. Going solar will not only help clean up our environment, it will create good jobs and help grow this sector of our economy," said Council President Eric Garcetti.

"Los Angeles is the sunshine capital, making it one of the best solar resources in the nation, if not the world. It makes sense that our City would take the lead in delivering innovative, environmentally-friendly technology and make job development and training in the field of solar energy a top priority," said Councilwoman Jan Perry, Chair of the City Council's Energy and Environment Committee.

The Solar LA plan consists of three primary components: Programs to boost residential and commercial customer solar systems; LADWP-owned solar projects in Los Angeles; and large-scale solar projects owned by the LADWP outside of the LA basin.

Customer Solar Programs – Total goal: Installation of 380 MW by 2020

Expand Residential Program: Using $313 million in State funds set aside for solar projects, LADWP will expand its rebate programs to encourage DWP ratepayers to install solar panels on their roofs. In low-income communities, LADWP will provide free systems to a limited number of customers. LADWP will also extend to residential customers low-interest loans for the installation of solar systems now available to commercial customers. The terms of the loans will be extended to 10 years at interest rates of 5 to 6 percent. Innovative financing models will be developed, such as loans made to residential customers that are repaid through property taxes. The goal is to install 130 MW of solar systems by 2020.

New Feed-in Tariff (FiT): A significant challenge to developing solar projects in Los Angeles has been the long-standing prohibition against non-LADWP entities selling electricity to other customers on the local grid. A Feed-in-Tariff (FiT) would address this problem by allowing a solar developer in the City to sell power directly to LAWDP through a long-term contract between the private seller and LADWP. These third-party sellers could take advantage of tax incentives of 30-60 percent of the installation costs, and after 5-8 years could choose to sell the solar systems to LADWP. The FiT goal is to install 150 MW of solar systems by 2016.

New SunShares Program: For residential customers interested in investing in solar power, but without the means or opportunity to install their own solar systems, SunShares will allow them to purchase shares of an LADWP solar power plant. SunShares would leverage the collective purchase power of groups of customers to fund commercially-sized solar power plant built and operated by LADWP. Customers, in turn, would receive their “dividend” through credits on their own energy bills. The goal of SunShares is to install 100 MW of solar systems by 2020.

LADWP-owned Solar Projects in LA – Goal: Installation of 400 MW by 2014

Installing solar systems on rooftops, reservoirs and parking lots on City-owned property, the Los Angeles Green Energy and Good Jobs for Los Angeles Initiative will require LADWP to install 400 MW of solar systems by 2014 – more than currently operating in all of California. The project will be used as a springboard for the City to attract and cultivate a local solar industry that includes research and development, manufacturing and warehouse operations.

Large-Scale Solar Projects – Goal: Installation of 500 MW by 2020

Taking advantage of some of the world’s best solar resource areas, such as the nearby Mojave Desert, LADWP will procure 500 MW of utility-scale solar power projects developed under agreement by third-party solar developers. These projects will feed into LADWP’s two transmission stations in the area, and LADWP will have the option to purchase the plants after about eight years.

By tapping its most abundant natural resource, the City of Los Angeles seeks to create a home-grown solution to an energy and public health problem facing cities across the country.

“Solar LA serves as more than a blueprint to a greener LADWP,” Mayor Villaraigosa said. “By sparking a broad movement to solar energy across a city of 4 million residents, we are priming the pump for Los Angeles to become a world leader in the solar industry and delivering on the vision of re-making Los Angeles into the cleanest, greenest big city in America.”

Further details about: Solar LA Plan