Consumer activists object. They say Edison should be looking to cheaper sources of renewable power, such as large solar and wind farms and geothermal plants. They contend that Edison International shareholders, not utility ratepayers, should finance the company's huge bet on photovoltaic rooftop solar, one of the most expensive forms of clean energy.
Edison used so-called thin-film panels on its first rooftop project. Supplied by Tempe, Ariz.-based First Solar Inc., that technology is significantly cheaper than traditional silicon-based solar cells. Still, Edison estimates that electricity from the Fontana facility costs about 27 cents a kilowatt hour, compared with an average of 8 cents a kilowatt hour from conventional generation.
For The Record
Los Angeles Times Saturday, December 06, 2008 Home Edition Main News Part A Page 2 National Desk 1 inches; 45 words Type of Material: Correction
Solar panels: An article in Business on Tuesday about Southern California Edison's push to put solar panels on large rooftops of commercial and industrial businesses identified ProLogis Inc., the company hosting the first such array, as a logistics firm. Pro- Logis builds and owns warehouses.
"This is not the most cost-effective renewable they could invest in," said Sepideh Khosrowjah, policy advisor for the Division of Ratepayer Advocates of the California Public Utilities Commission. The independent advocacy operation has asked the commission to reject the ratepayer-financed plan. Others fear that Edison would drive up the cost of solar panels by gobbling a limited supply and that the utility would have an unfair advantage over private-sector solar providers, which don't have a captive group of ratepayers to fund their operations.
"This is a solar monopoly that will eliminate its competition," said Michael Boyd, president of the nonprofit Californians for Renewable Energy Inc., in a filing with utility regulators.
Edison executives said their entry into the market would help to lower solar panel prices for everyone because of economies of scale. The company's big orders would help manufacturers improve designs, increase efficiency and ultimately cut prices, said Ted Craver, chief executive of Edison International.
Edison is complementing, not competing, he said, with the private-sector firms that are thriving under California's existing Million Solar Roofs Initiative. That program provides hefty state incentives to homeowners and businesses that install systems less than 1 megawatt in size.
Craver said Edison's photovoltaic project aimed to install systems ranging from 1 megawatt to 2 megawatts on commercial rooftops.
"It fills a gap," Craver said.
California law requires Edison, PG&E Corp.'s Pacific Gas & Electric Co. and Sempra Energy's San Diego Gas & Electric Co. to procure at least 20% of their electricity from renewable sources by 2010. Schwarzenegger wants to boost that minimum to 33% by 2020. Edison is currently at 16%.
Edison already is the nation's largest purchaser of solar power with 354 megawatts under contract. Much of that comes from large-scale solar projects located in remote desert areas, which take years to permit and build.
Craver said Edison wanted to add urban rooftop solar to the mix because it can be rolled out rapidly, getting more clean megawatts online sooner. The Fontana project was completed in a few months.
Edison on Monday announced its second rooftop project atop a 458,000-square-foot industrial building in Chino that is slated for completion in early 2009. Craver said it would probably be Edison's last if the state Public Utilities Commission didn't approve its proposal.
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marla.dickerson@latimes.com
