SOLAR POWER TO THE RICHEST PROJECT FUNDS GO TO UPSCALE AREAS.

Byline: Beth Barrett

Staff Writer

Touted nearly a decade ago as a way to boost clean energy in Los Angeles, a Department of Water and Power program funded by ratepayers is largely subsidizing solar power systems for wealthier residents even as it falls far short of its energy goals, the Daily News has learned.

Since its inception in 1999, DWP ratepayers have paid $50.8 million to fund the city's Solar Incentive Program, which has financed half the cost of 1,022 solar power systems for residential and commercial property owners.

But of the $18.1 million in residential solar subsidies, nearly three-quarters has gone to 633 customers in five council districts encompassing upscale Westside communities, the West San Fernando Valley and the Silver Lake area.

Meanwhile, just 300 residents in the city's other 10 council districts -- which have twice as many residents -- have gotten just $4.9 million in subsidies.

And while $32.7 million has funded solar panels for 89 commercial customers, all of the residential and commercial systems combined are generating just 10.2 megawatts of power -- well below the utility's goal of 280 megawatts by 2016.

"It's unacceptable when some doctor in Encino or investment banker in Brentwood is being subsidized by someone in the northeast Valley or East Los Angeles," said DWP Commission President Nick Patsaouras.

"The rich boys and girls are subsidized by the little guys."

But DWP general manager David Nahai vowed that the inequities will be addressed as part of a far-reaching plan to boost solar power through public-private partnerships, solar-powered public buildings and initiatives such as tax credits.

"This issue of making sure solar is equitable between affluent and less affluent families is foremost on my mind, and to make sure we provide equal benefits to low-income areas is something under consideration," he said.

The Berkeley model

Nahai said the subsidies originally were designed to initiate the program and attract as many residents as possible. But the cost was too much for many low-income customers, even with discounted utility rates.

Patsaouras said the disparities should be bridged with surplus program funds as the cost of solar technology and installation is reduced possibly through a city-trained work force.

And he said the impact of the program on ratepayers wasn't adequately thought out.

"They didn't see the forest for the trees," he said.

Northeast Valley Councilman Richard Alarcon has just seven residents in his district who have received $200,000 in subsidies, and three businesses that have received $1 million to install solar power systems.

Alarcon said the DWP should have worked harder to reach out to low-income communities. But he said until prices are even lower, it's unreasonable to expect low-income homeowners to pay even $4,000 of the cost for a small $8,000 solar roof.

"I'm not giving anyone a pass, but I do recognize the market forces that are needed for a lot of people to want to buy them," Alarcon said.

West Valley City Councilman Greig Smith's district is at the opposite end of the spectrum, with 105 residents having received $2.7 million and six businesses having received $6.7 million.

Smith himself is installing a new solar panel and shingle roof on his Granada Hills home, but he agreed that the solar program has been too pricey for many.

"The roof is $48,000 and the subsidy was $25,000, but the rest was on my back -- which is out of reach for most homeowners," he said.

Smith is urging Los Angeles officials to instead look at following Berkeley's lead in paying up-front solar costs that would be reimbursed by property owners through a 20-year property tax assessment.

Smith said customers would likely save enough on their annual energy bills to more than pay for the assessment. He said he expects his own roof to pay for itself through energy savings within a decade.

Councilwoman Jan Perry, chairwoman of the council's Energy and Environment Committee, called the disparity ridiculous and said she expects DWP officials to address it next month.

"A large swath (of the city) is being left behind," Perry said. "I can't think of a rational reason why it's the case ... it bothers me very much."

Nine businesses in Perry's district -- which runs south from downtown -- have gotten $7.3 million in subsidies, while 19 residents have received a total of $200,000.

Nahai promised reforms are under way.

"A plan is being developed," he said. "And these issues are very much at the forefront of the department's thinking."

beth.barrett(at)dailynews.com

818-713-3731

CAPTION(S):

photo, map

Photo:

City Councilman Greig Smith is installing a solar panel and shingle roof on his Granada Hills home at a cost of $48,000, with a $25,000 subsidy.

Evan Yee/Staff Photographer

Map:

LADWP Solar Incentive Program 1999-2007: Residential

SOURCE: Department of Water and Power

Gregg Miller/Staff Artist