Water Director Bill Kocher says the $1.6 million panels for the Graham Hill plant are expected to produce a fraction of the energy needed to pump 4 billion gallons of water into the city's system each year.

But city officials say it is wise to have "energy neutral" measures in place before seeking permits from the state Coastal Commission for an energy-hungry desalination plant.

The panels will be installed in the spring and funded with rates paid by city water customers.

An estimated $338,000 is expected to be reimbursed by PG&E's California Solar Initiative Program