PG&E hires Solon to build pilot solar project

* German module maker chosen for substation solar project

* Part of California utility's bigger renewable power push

SAN FRANCISCO, July 8 (Reuters) - California's Pacific Gas
& Electric Co has hired Solon (SOOG.DE) for a pilot solar
project on one of its properties as part of the utility's
larger plan to build 250 MW of solar capacity for itself.

The utility, owned by PG&E Corp (PCG.N), said the German
solar module maker would create the 2-megawatt facility at its
Vaca-Dixon substation.

The site is about 50 miles (80 km) north of San Francisco,
where PG&E is based, and happens to be just north of a recently
unveiled wind-power plant built by French-backed enXco that
will supply PG&E with 150 MW of power. [ID:nN26287783]

PG&E is pushing to meet state mandates requiring utilities
to produce 20 percent of their power from renewable sources
such as the wind and sun by 2010, and then 33 percent by 2020.

PG&E announced in February its plan to develop 500 MW of
photovoltaic solar projects over five years, which would meet
1.3 percent of its electric demand. Up to half the capacity,
costing $1.4 billion, would be owned by PG&E and largely built
at existing power station sites or on land it already owns.

The other 250 MW will be built and owned by independent
developers, and overall, the project will generate enough
electricity to power about 150,000 homes. [ID:nN24425296]
(Reporting by Braden Reddall, editing by Matthew Lewis)