When the Sacramento Municipal Utility District (SMUD) launched its PV Pioneer I program in 1993 it became the first municipality to engaged in bulk purchasing to drive down the price of photovoltaics (PVs). PVs, commonly called solar cells, use direct sunlight to generate electricity. SMUD's Pioneer I program required participating customers to pay an additional $4 per month to have SMUD install a 2-4 kilowatt (kW) solar array on their rooftops. This additional cost covered only a portion of the cost of the PV systems. The remaining costs were spread across the entire customer base of SMUD.

SMUD's Pioneer II program provided customers a reduced-cost PV system and allows them to receive the retail price for any net excess electricity generated by their systems (see Net Metering for more on this). SMUD's PV Pioneer program included residential rooftop solar units and dozens of commercial and church rooftop systems. The PV systems fed over 1,500 kW of clean electricity directly into SMUD's grid.

The demand for solar power systems grew significantly in 2001. Nearly 1,200 kilowatts of solar generating capacity was installed on more than 220 homes and business in 2001 - nearly seven times more than the utility installed in 2000. That growth spurt helped SMUD to achieve a total solar capacity of 10 megawatts, spread over more than 1,000 solar power systems that were installed through the Pioneers program. SMUD expected the program to continue growing rapidly in 2002; to meet the demand, the utility has tripled the number of staff and contractors working on the program.

Around 2004 the PV Pioneer program was changed. And as of March 2005 the solar program for residential customers requires that the customer contract directly with a SMUD-approved PV contractor for the purchase/installation of their solar electric generating system in order to qualify for financial incentives. SMUD offers an incentive of $3.50 per watt, based on system size and performance. The incentive will be paid to the approved PV contractor and should be reflected in the contractor's bid to the customer. Budgeted funding for this program was also cut slightly in 2005.

More Information on SMUD's PV Pioneer Programs

Similar Municipal Utility Solar Electric Programs:

• Long Island Power Authority's Solar Pioneers program
• Los Angeles Dept. of Water and Power's Solar Program

Other Resources:

• Seeing the Light: Regaining Control of Our Electricity System
  is the newest book from the New Rules Project by David Morris. Order Online Now! $15.00
• Photovoltaic Economics and Markets: The Sacramento Municipal Utility District as a Case Study - by Howard Wenger, Tom Hoff, Jan Pepper, September 1996