With more than 300 days of sun a year and a number of environmentalists, Los Angeles seems like the perfect city for solar panel installation. Surprisingly, this isn't the case and experts blame it on the cost. Recently, the Los Angeles Department of Water and Power announced that it would increase the cost of electricity by 5%. The proceeds from this increase would go towards renewable energy purchases and programs- an equivalent to a carbon tax since all consumers will see rates fall as the city becomes less reliant on other energy.

With high unemployment rates, flat wages, and a sluggish economy California is still facing tax increases that are supported by Los Angeles Mayor Antonio Villaraigosa. Mayor Villaraigosa argues that this increase will ultimately stimulate the economy by creating jobs to the city. Although Los Angeles has never fully embraced the idea of solar power due to its high cost, there are many solar installation Los Angeles companies that are now offering lower prices to make solar energy affordable. "A well-crafted carbon surcharge achieves two goals," Los Angeles's chief deputy mayor, Jay Carson, said. "The first is a drastic reduction in fossil fuel usage for energy, but the second, and more important for Los Angeles, is the creation of thousands of green-collar jobs."

Under this program, Los Angeles would take a step toward Gov. Arnold Schwarzeneggar's larger goal of one million solar panels Los Angeles on roofs in California by 2018, through state incentive programs. About $150 million will be set aside to use in energy alternatives to use in the city. This money would also be used to pay a feed-in-tariff, where the utility will pay a set rate for electricity from customers who install solar systems. But "feed-in tariffs for solar power is not good use of money," Professor Borenstein from University of California "Solar power at the residential level is not close to economical. There are many things you should do before you subsidize it."

The city also plans on offering more incentives to users who get solar panel manufacturers in Los Angeles giving companies an incentive to open their business here. The city will adopt a popular program in which homes undergo an energy audit and the owners borrow money from the government to make their business more efficient. Californians have been squeezed by high unemployment rates, but Los Angeles residents may not give in to a rate increase so easily.

For references please visit: http://www.nytimes.com/2010/03/11/science/earth/11solar.html