California Governor Arnold Schwarzenegger signed a bill into law today that doubles the amount of energy power companies will be required to buy back from customers with solar panels today. That means that customers will be able to sell back up to 5% of the energy they generate, double the old rate of 2.5%.

A home with solar panels installed on the roof in Los Angeles, California. From Flickr.com

This is exactly the kind of incentive that people need to expand solar technology. Many scientists and researchers say that solar technology is best implemented on an individual home basis. With legislation like this, homeowners will have a greater incentive to invest in the expensive technology.

We’ve heard of the homeowners that get paid by the power companies, but it is usually an amount so small that it rarely covers the cost of equipment. If new legislation can double that number, like it has in California, then more and more people may turn to solar.

Just as in agriculture, getting people to switch to a more expensive energy efficient technology requires financial incentive. California has taken a step in the right direction. Let’s hope other parts of the country follow suit.

But, will this bill make a big difference for regular homeowners? Is 5% high enough? Is this something the rest of the country should implement? Share your thoughts below.