Los Angeles offers businesses more incentive to go solar
Los Angeles, located in the sunny southern part of the country's largest solar market, already boasts a substantial number of solar installations. However, city leaders note that many of the best spots for solar power systems, on the larger roofs of apartment buildings and businesses, remain unused.
The city hopes to change this problem by creating a new policy to encourage businesses and other larger buildings directly. Known as a feed-in tariff, the city will offer long-term contracts to buy clean energy from businesses at a premium electricity rate.
By targeting the contracts, the policy can avoid some of the potential hazards posed by other incentives and offers more direct control over spending.
"It’s an opportunity to take advantage of the federal tax credits and depreciation and to have solar installed on their roofs and reduce their electric bills and potentially generate a new source of income, making their rooftop now an asset," explained Mary Leslie, with the Los Angeles Business Council.
The Database of State Incentives for Renewables and Efficiency notes that Los Angeles already offers several incentives for solar power systems through its local utility, the Los Angeles Department of Water and Power, but those all take the form of rebates.