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FOUNTAIN VALLEY — Power shortfalls and price spikes are leading some California companies to consider solar power, not just as a cleaner substitute for conventional energy but also as a reliable source of electricity in a volatile market. 

Two solar projects went on line Wednesday at Southern California office buildings, including a one-acre, 230-kilowatt array in Fountain Valley. It is believed to be the largest private commercial photovoltaic system in the Western Hemisphere. 

The energy companies involved in that project and another in Carlsbad said interest in onsite energy sources is rising about as fast as electricity prices and power alerts. 

“There’s been an enormous increase. We’re basically sold out through the first quarter (of 2001),” said Daniel Shugar, executive vice president of PowerLight Corp. 

The Berkeley-based company has sold nine 100- to 200-kilowatt photovoltaic systems in the last two months. 

“People want their systems online by summer,” he said. 

The managers of California’s power grid declared about 15 Stage Two emergencies last summer when reserves fell below 5 percent, triggering voluntary outages. The state has never called a Stage Three emergency, which would be triggered when reserves fall below 1.5 percent and force rolling blackouts. 

Winter is shaping up to be just as rough on the grid. 

The California Independent System Operator declared its third Stage Two emergency in as many days Wednesday. Also Wednesday, inspectors examined all the state’s power plants to verify an unusually high number of forced outages. 

The solar energy produced at the Fountain Valley office complex won’t solve the state’s power problems. 

In fact, it will provide only about half the electricity needs of the 110,000 square-foot building, or enough to run about 40 homes. 

It will, however, provide an important hedge against power outages, said Robert Accomando, a vice president for property owner Arden Realty. 

“If we can’t provide electricity to our tenants, we’re out of business,” he said. 

The photovoltaic systems for the Fountain Valley and Carlsbad offices cost a total of about $2 million. They are owned by RealEnergy of Los Angeles, which will sell Arden the electricity for whatever rate the utility company is charging at the time, RealEnergy Chairman Daniel Cashdan said. 

Solar energy costs about 15 cents per kilowatt hour to produce, while traditional electricity can run as low as 3 cents, RealEnergy President Paul Slye said. Electricity costs during periods of peak use, however, can rise to 27 cents or more per kilowatt hour, he said. 

Subsidies are helping pay for the Fountain Valley and Carlsbad projects, including more than $880,000 from the state. 

The state has provided more than $10 million in incentives to buy solar systems and other alternative fuel sources during the last four years, California Energy Commission economist Sanford Miller said. 

A recent extension of the incentive program means it could provide nearly $200 million by 2012. 

Cashdan said RealEnergy is working on other commercial projects that likely will be bigger than the Fountain Valley system. 

“I think this marks the beginning of a new era of innovation in energy,” said Ananth Ananthasubramaniam, director of new technology investments for the utility DTE Energy, a company involved in the solar projects. “It’s just like PCs, just like cell phones — I think this will transform the business.” 

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On the Net 

www.realenergy.com 

www.energy.ca.gov/greengrid 

www.caiso.com