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California to Compensate New Surplus Solar Panel Owners
Monday, December 27th 2010 5:39 PM
By GetSolar Staff.
California is a national leader in solar power. Currently, it has the most solar power installed out of any state and it leads the nation in solar power contracts for next year. Recently, the state ruled that beginning next year, those who own photovoltaic systems that produce more energy than the building consumes will be compensated for their clean energy production. 

The California Public Utilities Commission has not yet ruled when that compensation date will be, but will likely announce it early in 2011. The state has tested a solar compensation system through a "tune-up" 12-month program, and home and business owners await the news of the study.

The "net surplus compensation" is a required part of AB 920, a bill that Governor Arnold Schwarzenegger signed into law back in 2009. While fewer than 10 percent of solar power systems will be affected, solar power backers are encouraged that it is even a topic of state discussion, signifying how ubiquitous solar power has become.

The dollar amount that homeowners will receive in compensation will also likely be small, but as the state decides how best to pay its residents, other states will look to California as a benchmark of how to handle such cases.

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