Solar Power Bill Gains Steam

Legislation proposed by Governor Schwarzenegger to incentivize solar power is gaining momentum in Sacramento:

Gov. Arnold Schwarzenegger's plan to power a million homes and businesses with the sun moved forward yesterday, despite concerns that ratepayers would be stuck subsidizing the ambitious expansion of solar energy.

The legislation would invest $2 billion in rooftop photovoltaic systems – panels that turn sunshine into electricity. Customers with solar panels would save money by producing energy and could sell excess power to the electric grid.

Homeowners and businesses would get a rebate for installing the panels, with 10 percent of the subsidies set aside for low-income homes. Currently, a solar panel system costs about $27,000. Under the legislation, a typical home would get about $10,000 in rebates and tax breaks.

Compared to current California Home Prices, that's a drop in the bucket!

UPDATE: Dan Weintraub has more on why solar makes economic sense.