Palo Alto Establishes Permanent Solar Water Heater Rebate Program
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Palo Alto Utilities is set to become the first municipally owned gas utility in the state with a permanent rebate program for residents who install solar water heaters. City residents who install a solar water heater will be eligible for a rebate of $1,500, in addition to a federal tax credit. Businesses are also eligible for a rebate. The City Council approved a five-year, $730,000 contract with the California Center for Sustainable Energy (CCSE), which already runs a solar water heater incentive pilot program in San Diego. After the Palo Alto program launches on May 17, 2008, CCSE will help run the program, coordinating inspections, processing applications and giving technical advice through a phone hot line. Solar water heaters are smaller and cheaper than a full photovoltaic system, which requires 16 to 20 panels and can cost at least $20,000. Solar water heaters require only one or two panels and typically cost between $6,000 and $6,500. Although a new state law passed in October 2007 requires natural gas utilities to offer solar water heating incentive programs (e-Newswire, 10/17/07), Palo Alto's program will be in place before state requirements kick in.