LIPA Restarting Solar Rebates: Possibly December 1st

On November 23, 2010 Governor Paterson announced  that $15 million has been allocated to the Long Island Power Authority (LIPA) for residential and large-scale solar energy projects.   $8.3 million will go directly to LIPA’s Solar Pioneer program that provides rebates for residential installations.  Strong statements of support by numerous political leaders in New York indicate the growing significance of solar energy to the state.  Please see the Press Release below for further details.

With a fresh injection of funds, we expect  that LIPA will restart the solar program on December 1^st, most likely at $1.75 / watt up to 10 kW for residential customers.  We will notify you as soon as we hear official details.  Please stay tuned for further information.

Official Press Release

http://www.state.ny.us/governor/press/11232010-15MillionFederalStimulusFunds.html

Town of Hempstead Encourages Solar

The Town of Hempstead has recently taken many steps to go green, including installing a hydrogen fueling station at the Conservation & Waterways building in Point Lookout and hosting numerous solar and energy efficiency seminars.  On October 5, 2010, the Town passed a cap of $100 on the fee for permit applications for solar system installations, a move which is expected to further promote the technology that is already lowering residents’ electricity bills.

Before the cap, the permit application fee was 1.2% of the total cost of the project.  This was typically around $300-$500 for the average solar installation, which costs $10,000-$25,000 after rebates and tax credits, depending on overall electricity usage of the building.  The new $100 cap allows Town of Hempstead Residents to keep a few hundred dollars more in their pockets, while also representing the Town’s continued effort to “go green.”

Read more on the Long Island Herald website.

LIPA REBATE CHANGE

We are pleased to announce that LIPA has extended the 2010 solar rebate program.  Here are the program details:

1. Solar Pioneer (Residential):

There will be one (1) additional 750 kW block at $1.75/Watt for the Solar Pioneer Program. The 750 kW block will become effective 8:00 AM EST on October 1, 2010. Once the block is fully subscribed no further applications will be accepted until January 1, 2011.

For up-to-date information on the Residential Solar Pioneer Program, please refer to LIPA’s website at http://www.lipower.org/residential/efficiency/renewables/solar.html

2. Solar-Entrepreneur (Commercial/Munis/NFPs/Schools)

There will be one (1) additional 750 kW block at $1.75/Watt For Profit, $2.75/Watt Non-Profit, for the Solar Entrepreneur Program. The 750 kW block will become effective 8:00 AM EST on October 1, 2010. Once the block is fully subscribed no further applications will be accepted until January 1, 2011.

For up-to-date information Commercial and Non-Profit Solar Entrepreneur Program can be found here:            http://www.lipower.org/commercial/efficiency/solar.html

If you would like to proceed with a solar electric system this year we encourage you to contact us soon.  Please call our Sales Manager Joe Cordes at (516) 286-1477 at your earliest convenience to get started.

Affordable Solar Electric via Feed-in Tariffs?

The National Renewable Energy Lab (NREL) reports that feed-in tariffs are responsible for 75% of solar photovoltaic and 45% of wind projects worldwide.  Feed-in tariffs (FITs) require utilities to pay per kilowatt-hour to purchase electricity from renewable energy generators.  They enable stable and reliable pricing, and small generators and large plants have an equal opportunity to compete. Countries in Europe, especially Germany, France, and Spain, have used feed-in tariffs to greatly increase renewable energy production because of their increased cost-effectiveness.  For example, California receives 70% more sunlight for producing solar energy than Germany does, though the latter installs 15 times as many solar electric systems per year due to the effective use of FITs.

Generally, green markets in the United States lack strong federal support, and instead, progressive states like California create markets and regulations that eventually spread to the rest of the country.  Though many states have established FITs before, institutional resistance, too high or too low pricing, and bureaucracy have rendered them virtually ineffective. California is again taking the lead and has recently proposed to launch a new variation of the tariff.  In California, investor-owned utilities will be required to purchase electrical energy from renewable generators that are 1MW-20MW in size.

New York recently pushed a bill for FITs on Long Island, but it did not pass. The Long Island Power Authority (LIPA) already awards large rebates (up to half of system cost!), and the 25% New York State and 30% federal tax credits have already made solar systems incredibly cost-effective.  We can only hope that pushes for cost-effectiveness like the FIT can get the United States on par with our European friends.

Long Island Power Authority Reduces Solar Rebates Once Again

When I first came to EmPower Solar as a lowly intern in June of 2009 (don’t worry, now I’m full time, with a degree), the Long Island Power Authority (LIPA) was paying solar system owners $3.50 per watt of electric power capacity installed as part of its Solar Pioneer Program.  That means the utility could literally pay you $35,000 – half the total cost – for a typical 10kw residential system.  This is not including federal and state tax credits, which can further reduce the cost to owners.

I came back to EmPower full time upon completing my degree earlier this summer, when rebates were down to $2.00.  After a few weeks, we got word that the rebates were going down even further, and might even dry up for the rest of the year! Luckily that didn’t happen, but rebates have officially been lowered to $1.75 per watt for up to 10kw or $17,500.

What does this mean for homeowners who want to go solar? Well, fortunately system costs have gone down as well.  It’s a typical effect of supply and demand: demand for solar panels have skyrocketed in the past few years nationwide, so industry kicked up production and took advantage of economies of scale.  It’s still a great time to go solar, as rebates tend to stay somewhat proportional to system cost.  But it is likely that utility rebate funding will indeed dry up in the near future.  This is a tribute to the success of the program – and the awesome fact that Long Islanders are supporting the clean energy mission – but the money won’t be available forever.  If you are at all considering going solar, now is the time.  Solar panels are cost effective anyway, but you don’t want to miss the chance to have LIPA pay a large chunk of your system cost and reduce the payback by a few years.  Given the speed at which rebates have been dropping, there is no predicting how long they’ll last.

See for yourself a rebate update on LIPA’s Solar Pioneer Rebate Block Guidelines Site website.  If you follow some links to the rebate block graph, you can see the rate at which the rebates are being dispersed.

And to read a Newsday article on LIPA’s rebate status, click here