California is debating beefing up its feed-in tariff program, FBR Capital says in a note this morning.
The legislation under discussion expands the current feed in tariff’s cap from 250 MW to 750 MW. It will pay a price of $0.20-plus/kWh for solar PV installations on roof tops. FBR calls the price lucrative, but it’s less than half the price paid for similar programs in Europe.
If the state goes through with the legislation, expect a much faster adoption of solar PV, with the market becoming “materially” larger. Utilities are struggling to meet the renewable portfolio standards, this legislation could help out.
The legislation won’t take effect until 2010.
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