The outlook for solar power in California just got sunnier. Gov. Arnold Schwarzenegger signed legislation February 26 that raises the cap on the amount of customer-generated solar power utilities must reimburse through net-metering credits. Net-metering allows homes and businesses to receive credits if they generate more solar power than they can use. In effect, the customer sells the excess power to the electric grid and gets credit for it.

According to a San Jose Mercury News article, “State law had required California's three largest utilities, including PG&E, to credit customers for renewable power they send to the grid, but limited the program to 2.5 percent of a utility's peak demand.”

The new law doubled the cap to 5 percent of a utility’s peak demand. Customers in PG&E’s service area were on track to reach the 2.5 percent level in late 2011. The higher cap allows more folks to go solar and know that they’ll qualify for net-metering credits over the long-term.

Are you in the market for solar panel installation in California? If so, check out our California solar panel installation page and sign up for a free solar evaluation.

California offers generous rebates for solar electric and solar hot water systems. When combined with federal rebates, these incentives can cover 50 percent to 60 percent of the costs of solar installation.

Join the more than 50,000 California power customers who participate in net-metering. The solar panel installations at homes, businesses, schools and cities in the state generate enough electricity each year to power the equivalent of 375,000 homes! Who knew?