California approves innovative program to spur mid-sized solar, renewable development

SAN FRANCISCO, USA: The California Public Utilities Commission (CPUC) voted unanimously to approve a new program designed to drive small to mid-sized renewable energy development.

Called a “Renewable Auction Mechanism” (RAM), this next-generation feed-in tariff program will require investor-owned California utilities to purchase electricity from solar and other renewable energy systems up to 20 MW in size. Solar advocates and industry representatives applauded the CPUC for its innovative approach to helping California meet its renewable goals and build a strong new energy economy.

Adam Browning, Executive Director of Vote Solar, a non-profit organization working to make solar a mainstream American energy resource, said: "This is an elegant program that will drive significant new development in small to mid-sized renewables in California. The approach builds on best-practices to deliver cost-effective solar on-line quickly, in a way that delivers sustained value to ratepayers.

"In combination with California’s 80,000 behind-the-meter solar systems and the Renewable Portfolio Standard that is driving large-scale projects, this program pioneers a new approach to wholesale distributed generation. At scale, solar is more cost effective than the fossil fuel alternatives. All it takes is the right market mechanism to turn the opportunity into reality, and we thank the Commission and Commission staff for their vision."

“The Solar Alliance applauds the CPUC for creating and approving this RAM Program, which will open up a significant market potential in California for simplified renewable energy procurement,” said Sara Birmingham of the Solar Alliance, a trade association of solar manufacturers and developers.

“This program is a great step forward in facilitating the expansion of distributed solar power generation,” said Marc Van Gerven, CEO of Q-Cells North America, a global leader in developing solar power systems. “We are committed to partnering with utilities and the CPUC in continuing to grow solar adoption and California's leadership in the renewable energy market.”

“This program is a thoughtful design that helps keep the state on track with its renewable energy obligations and goals but in a cost-effective and pragmatic way. We are very excited about the significant opportunity it provides solar developers,” said Polly Shaw, Director of External Relations for Suntech America, one of the world’s largest solar energy companies.

“The passage of the Renewable Auction Mechanism by the CPUC today marks the beginning of a new era for the solar industry in the United States and will allow us to reduce air pollution, increase energy independence and create new green jobs much more quickly. We are very grateful to the CPUC staff and commissioners for their hard work to develop this program over the last two years,” said David Hochschild, VP at Solaria, a solar manufacturer headquartered in California.