Aside from reducing greenhouse gas emissions, the Feed-in Tariff (FiT) solar program – the largest solar program of its kind in the nation – is credited with spurring major private investment in clean solar power in Los Angeles County and creating thousands of high-quality local jobs. The pilot program has reached capacity with all 150MWs originally authorized either installed or active, along with a waitlist of interested participants.
“Los Angeles has a unique opportunity to show the nation that we can harness technology, an entrepreneurial spirit and the sun’s energy to meet the demands of the climate crisis while producing the power needed to sustain our way of life,” wrote leaders organized by the Los Angeles Business Council in a letter sent today to LADWP Board President Mel Levine on behalf of the organization’s 500 members.
“Expanding solar programs [will] benefit the entire L.A. community by creating a pipeline of good paying local jobs, while reducing greenhouse gas emissions and improving the quality of life for residents,” the letter states.
This push to expand the FiT program follows a recent announcement by Mayor Eric Garcetti that the DWP will be closing three gas-fired power plants along the coast that generate nearly 40 percent of the city’s natural gas portfolio. The decision to phase out the power plants supports L.A.’s goal of transitioning to 100 percent clean energy by 2045.
City leaders have yet to announce how the DWP plans to replace the nearly 1,700MW of lost electricity without raising energy prices or increasing the risk of power outages.
“This is a moment that calls for big-picture thinking,” said Los Angeles City Councilwoman Nury Martinez. “We need to accelerate our transition to clean energy even faster by quickly scaling the FiT program to generate more renewable energy, and consistent with the call for a Green New Deal for Los Angeles, we must seize the opportunity to be first in the nation to commit to targeting the environmental and economic benefits of this groundbreaking approach to our hardest hit front-line and disadvantaged communities.”
Current participants in the FiT program include a variety of commercial, industrial and residential buildings in such neighborhoods as Boyle Heights, Sun Valley and Downtown L.A. Together, they are delivering affordable solar energy to the utility’s power grid while generating a steady stream of income for the buildings’ owners.
“The FiT pilot program generated $500 million in economic activity while displacing 2.7 million tons of greenhouse gases from the environment each year. That’s like taking away the emissions from about half a million cars annually while delivering clean power to tens of thousands of LADWP customers,” said J.R. DeShazo, director of UCLA’s Luskin Center for Innovation, which has conducted in-depth analysis on the program.
“The FiT program delivered on its promise and is now ready for a significant expansion to bring it to scale,” continued DeShazo. “According to our UCLA atlas, there are an estimated 10,000 acres of underutilized rooftops of office buildings, warehouses and apartment buildings in Los Angeles that could be put to use generating zero-carbon solar energy.”
The program has drawn investment to underserved neighborhoods, with 40 percent of all projects in “solar equity hotspots,” low-income communities with abundant rooftops for solar installations.
“The success of the FiT program demonstrates that you can grow the economy while investing in clean energy,” said Luis Amezcua, senior campaign representative for the Sierra Club’s My Generation Campaign. “We urge city officials to fast-track the expansion of the FiT to continue pumping clean energy into the grid while creating good job opportunities in communities where health and economic benefits are needed the most.”
Solar power has been in a continual state of innovation in recent years, with advances in solar panel efficiency, solar battery storage and solar system design. The FiT has also spurred innovative local manufacturing and financing programs, such as the Solar Strap roof attachment system and the imminent introduction of an online permitting process, as well as the attention of real estate owners and developers.
“The FiT program is an opportunity for our business to turn unused space – our building rooftops – into an income generating resource,” said Randy Kendrick, CEO of Xebec Realty, which just installed the largest FiT solar array in Sun Valley on the roof of one of its industrial properties. “It’s a smart business decision for us that also helps create a better environment for the community. At Xebec, we expect to install solar panels on more of our buildings within DWP territory, and already have identified two additional properties.”
The Mayor’s Sustainability pLAn sets a goal of 900 – 1,500 MWs of local solar by 2025 – half of which will be accomplished through solar FiT. Business leaders and environmental advocates convened by the LABC believe that goal is insufficient.
“We are grateful for Mayor Garcetti’s leadership in putting us on a path to 100 percent clean energy. Now we must step up our solar goals and expand the FiT program to ensure our city’s green transformation is rooted in equity and benefits communities that need it most,” said Veronica Padilla, executive director of Pacoima Beautiful.
The call to increase the city’s local solar targets comes as government, business and civic leaders are poised to convene at the LABC’s 13th Annual Sustainability Summit at the Getty Center on April 5. The summit will explore public and private sector investments needed to mitigate and adapt to climate change as well as restore certainty to California’s energy market. A full schedule of events can be found at losangelesbusinesscouncil.org.
About the Los Angeles Business Council
The Los Angeles Business Council is one of the most effective and influential advocacy and educational organizations in California. For over 70 years, the LABC has had a major impact on public policy by harnessing the power of business and government to promote environmental and economic sustainability in the Los Angeles region. To learn more, please visit www.labusinesscouncil.org.
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