AB 1470 is a $250 Million statewide incentive program, created to encourage residential and commercial installations of solar water heating systems. The intention of AB 1470 is to grow a mainstream market for solar water heating, with a goal of converting 200,000 conventional water heaters to solar over the next 10 years. The program is funded through a small surcharge (13 cents/month) on gas bills (capped at $250 million) on ratepayers.
The bill was created in order to address a growing problem: California relies heavily on natural gas for water heating, 85% of which is imported. As California’s population continues to grow, demand for natural gas will only increase accordingly. If left unchecked, limited supplies will be further strained, prices will spike, and greenhouse gas emissions will continue to rise.
Fortunately, California’s abundant sunshine can be captured through reliable solar water heating technologies. These systems are designed to last decades, over which time they save their owners 50-85% on water heating. By creating a mainstream Solar Water Heating market, California can save about a quarter of the state’s overall residential natural gas usage. To work in concert with the financial incentives offered, this program also aims to increase the public awareness of Solar Water Heating.
Solar water heating could reduce global warming pollution by 6.8 million tons of CO2 per year. This is equivalent to the annual emissions from over one million cars, and represents 5% of the total reductions needed to meet the state’s greenhouse gas emissions cap by 2020.
AB 1470 carves out at least 10% of the total funds for installing solar water heating systems on low-income and affordable housing projects. In addition, low-income ratepayers that are enrolled in CARE or FERA programs are exempt from paying the surcharge created to fund the program.
Palo Alto represents one of two Pilot Programs for Solar Hot Water Heating (the other being in San Diego County). The statewide release of the funds appropriated in AB 1470 is contingent on the success of the Pilot Programs in these markets. TS.
