California solar incentives have been among the strongest in the nation for years, leading the pack much of the time. Distributed by utilities rather than by a state body, the California Solar Initiative’s rebate has made it possible for the state to make incredible progress towards its goal of 1,940 MW of installed solar capacity by 2016 with solar installations distributed geographically across the state. In October 2009, the program had reached 509 MW, and demand isn’t slowing down. Southern California and the San Diego area have been booming right along with the rest.
So what could slow this freight train of solar growth? Not much, frankly, but the newly increased solar permitting fees in San Diego are at the very least causing a backlash of bad PR for the city, which prides itself (PDF) on being one of the leading solar cities nation wide. The Union-Tribune reported today on last month’s rate hikes, now that solar pros have had a chance to absorb the changes and react:
The cost of getting a solar installation plan approved and the system inspected has risen to $565 from $93. The increase reflects a policy change by the city to quit subsidizing solar installations and adjust fees to reflect what it costs to issue the permits, officials say…[T]he revised fees are part of an overall effort to make sure people pay what it costs the city to provide services. They are not related to the city’s general fund.
“We are encouraging solar,” [Mayor Jerry] Sanders said. “But one of the things we’ve learned is we get sued when we subsidize one type of development from other developers.”
Be that as it may, San Diego solar installers are not happy with either the increased fees or increased wait times for permit approval (a problem the city insists is temporary). There is also a problem with the logic of Sanders’ argument: if solar is being subsidized across the board–which it is, with programs like the solar rebate and new, innovative residential financing models sponsored by the city–then putting permitting fees on level with other industries does not necessarily follow. Furor over the change will likely die down as the industry adjusts, and as San Diego solar installers build the increased cost for permitting into the business models. This may drive the cost up on the consumer end with slightly higher quotes, but a few hundred dollars increase is just a fraction of the total cost of an average California solar installation.
Between rebates, tax credits and creative financing options, going solar in the state is still an excellent investment. The San Diego solar market may experience a brief, disgruntled drop in growth, but the city is still supporting its solar industry whole-heartedly and we expect installations to continue to climb.
Permit fees vary so widely in Florida and fluctuate it is nearly impossible to quote the fees. Our permits range from $75 to over $1,500.00 for a 5kw system. And the expensive ones usually require a licensed engineer for a special inspection, not included in the original costs… also they usually determine that after the permit is issued. So add the engineer, and the special permit processing fee and you have a $2,000 permit. 50 miles down the road.. $75.00.