David Schieren in the new fully electric Chevy Volt

LIBN: Do you think today’s young people will be a sort of “Generation Green” who accept solar from the start?

David Schieren:  It’s part of your DNA. I was with an executive from the American Petroleum Institute. I said there’s one thing the oil industry should be worried about. I pointed to the mind. The mindset is shifting, especially with students. Sustainability is becoming part of the DNA. While we’re starting to make progress today, I think we’re going to see this as the renewable energy century. You have a mindset shift.

Click here to read the full interview.

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

As was mentioned in the previous post, LIPA made rebates of $1.75/watt available for 750kW of Residential Solar for the rest of 2010 as part of the Solar Pioneer Program.  Rebate applications were accepted beginning at 8:00am on October 1, 2010, and were fully subscribed 11 minutes later, at 8:11am!  Contractors across Long Island waited at their computers to press “send” right at 8, and those applications that were received first will be processed in the coming weeks and months.  All other rebate applications will have to wait until January 1, when the 2011 Solar Pioneer Program will re-start.

It may seem as though solar on Long Island is doomed for the rest of the year.  But we at EmPower see it as quite the opposite.  Just for reference: it used to take almost a whole year for 750kW to go, and now it’s going in less than a quarter of an hour!  This is great news for the clean energy industry.  Demand is high, which means Long Island is on its way to achieving energy independence, reduced energy costs, and a cleaner, greener environment.  We are excited to continue working with LIPA in 2011 and beyond to further these goals.  In the mean time, feel free to contact us as we are still doing site visits and proposals, and stay tuned for an announcement regarding the 2011 Solar Pioneer Program rebate details.

Important note: LIPA rebates are still available for commercial and non-profit projects.

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.

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.

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



The current rebate is $2.00/watt (up to 10KW) for a residential solar electric system.  That means LIPA will potentially pay up to $20,000 of the system cost!  However, it is possible that the LIPA Rebate will run out in the next two weeks and there are no guarantees that rebates will be available in the future.

The chart below was taken from the LIPA webpage:

This graph shows that as of August 6, 2010 the Solar Pioneer Rebate (which is the Residential program) is almost gone.  There are only 200 KW left for the year – that’s only 20 residential systems for all LIPA customers!  Just to give you some more insight, in the last three weeks the block went from 500KW to 800KW.  Within the next couple of weeks, the Solar Electric Rebate will likely disappear for the rest of the year.

If you would like to proceed with a solar electric system, there’s no time to waste if you want to secure these rebates.  Please call our Sales Manager, Joe Cordes, at your earliest convenience at 516-286-1477 and we can get you started.  We will have to submit your Rebate Application before they close the program for new applicants!

Invest with confidence. Act now.

Schieren: Reasons to take a shine to solar power

By David Schieren

Long Island’s and our nation’s current energy paradigms are not sustainable. Every day we buy about $1 billion of oil from other countries, some of which are hostile to America. Every day, air pollution from our fossil-fueled power plants creates serious public health problems, including increased asthma rates, cardiac issues and premature deaths. Every day we wait for BP to plug the Gulf oil leak as we helplessly witness the destruction of wildlife and the livelihoods of thousands of Americans.

A renewable energy economy is the solution. A renewable energy economy will stabilize future energy prices, create jobs and increase domestically supplied energy while decreasing imports. A renewable energy economy will create a more prosperous, healthy and civil world for ourselves and future generations.

Locally, there is a pressing need to bring new energy sources into our power mix. Renewables, including solar energy, are beneficial for all Long Islanders. Solar rebates and tax incentive programs not only benefit those who choose solar energy systems for their homes and businesses, but also are good for all ratepayers. Here’s why:

As grid electricity prices continue to go up because of volatile and increasing fossil fuel prices, solar prices are coming down. Electric bills have consistently increased in recent years while solar costs have decreased at a rate of nearly 4 percent a year since 1998, a trend expected to continue. Many industry experts predict solar energy will achieve “grid parity” (the moment when solar electricity costs the same as traditional electricity) within the next five years. Through net metering, excess solar capacity is sold back to the Long Island Power Authority resulting in significantly lower bills for the solar user and a supply of clean, low-cost power for the other ratepayers.

There is much more than meets the eye regarding the value of solar output. The true market price of electricity fluctuates during the day, even though customers pay a constant rate. The real-time price of electricity spikes during sunny hot summer days, which is exactly when solar power works best. LIPA benefits from bringing more solar online because it reduces this peak demand, which has great economic benefit to the utility.

In addition to the direct economic advantages, solar energy boosts overall grid reliability because it puts a cap on surging demand on hot summer days. Remember the 2003 blackout? Richard Perez at the Atmospheric Sciences Research Center at SUNY Albany states that if as little as a few hundred megawatts of solar energy had been online throughout the Northeast, the blackout could have been avoided.

The socioeconomic gains of renewable energy are enormous. Solar does not release particulates or carbon dioxide into the air, leading to significant health benefits. Solar can be used to fuel electric vehicles and help reduce our insatiable reliance on foreign oil. Renewable energy and energy efficiency-related jobs cannot be outsourced overseas. The green industry can be a powerful force for reviving Long Island’s economy and that of our nation.

In the near future, solar, wind and other renewables won’t need incentives to be economically viable, but for the moment they are a necessity. Currently before the state Legislature is the New York Solar Industry Development and Jobs Act of 2010. This legislation would create a solar renewable energy credit market where solar owners would receive a SREC for every megawatt-hour of electricity produced; utilities would be required to purchase SRECs based on a certain percentage of their electricity sales. This would move solar away from a rebate structure and create market-driven incentives for individuals and organizations to install them. Whether or not this legislation passes, it is clear that the price of solar is coming down, and because of its many benefits, Long Island, New York and the United States should continue to aggressively invest in renewable technologies.

The solar industry on Long Island has undergone dramatic changes over the past 9 months.  Last November, LIPA was providing solar electric rebates of $3.50/watt for residential and commercial clients.  On March 1, a new rebate structure was instituted, which created set rebate reductions based on the number of rebate applications.  In this new structure, the first megawatt of applications received $2.50/watt, the second megawatt received $2.25/watt, and the third megawatt received $2.00/watt.  We are currently in the fourth traunch which allocates $2.00/watt for 1 MW of residential installations, and $1.75/watt for 1 MW of commercial and non-profit installations.

Although rebate reductions are a strain, they bring many positive things to light.  In just 3 months, more than 3 MW of solar rebate applications have been submitted.  There is clearly a demand for solar on Long Island.  LIPA’s Solar Pioneer Program has helped to make Long Island one of the best solar locations in the U.S.  But this also demonstrates the need for a consistent and predictable incentive structure.  It is challenging for consumers and business to plan and make decisions when net system costs can change so suddenly.

That said, there are many alternatives to a rebate incentive structure.  In the New York Assembly and Senate, bills have been introduced to create a solar renewable energy certificate (SREC) market in the state. An SREC market is what New Jersey used to successfully grow its solar industry.  For every set amount of energy produced, a solar system owner would receive a SREC (in New Jersey, owners receive an SREC for every 1 megawatt hour of energy produced).  Utilities would be obligated to purchase SRECs based on a certain percentage of the electricity they sell each year.  New Jersey has seen SREC prices usually between $500 and $600.  This means an owner with a 10 kW system, which produces approximately 12,000 kWh per year, would acquire about 12 SRECs in one year.  These 12 SRECs would in turn have an expected market value of between $6,000 and $8,400.

The New York solar industry should unite behind a common incentive structure to bolster the industry statewide.  The SREC legislation could be a great opportunity to further catalyze the solar market.  However, if this is not the best option for New York, than everyone in the industry should work together to advance quickly an effective alternative.

What are your thoughts?  Do you think SRECs are the way to go or is there a better option?

Annual US Grid-Tied PV Capacity Additions

Solar energy is growing strong in the United States.  Despite the deep recession,  installations grew 38% in 2009.  On Long Island solar installations have surged.  Solar has been successful in the region because of a good solar resource, high electric rates, and great Long Island Power Authority (LIPA) rebate program.  The growth of the industry has brought decreased system costs as manufacturers and installers achieve economies of scale.   LIPA carefully gauges installation costs and decreases its rebate accordingly in order to maintain a relatively constant solar investment rate of return.

LIPA solar rebates started at $6/watt in 2001.  Its sustained support over the past 9 years has been instrumental to the local industry’s growth.   In January of this year LIPA announced a 4 MW rebate program comprised of 4, 1-megawatt (MW) blocks to provide a degree of visibility to the industry.  The first block started at $2.50 / watt; the rebate decreases $0.25 / watt after 1-MW of solar rebate applications has been received.  LIPA also committed to posting the real-time rebate allocation information on its website.  We were pleased to have some degree of visibility.

Yesterday (May 3rd), LIPA lowered the  solar rebate by $0.25 to $2.00 /watt, meaning that 2 MW of the 4 MW is already allocated.  The first 2 MW were gone in just a few months – faster than expected – which shows that there is strong solar demand even at the lower rebate levels.  However, it is cause for concern because this implies that funding for the solar program could be gone by late summer.

There is uncertainty right now and we understand that might make some feel uneasy.  There has always been a notable amount of risk in this business because, despite decreasing equipment costs, we are still heavily dependent on subsidies.  There are many questions: Is the solar business viable on LI without rebates?  Does this mean companies should be more cautious about additional investment in the business and growth?  Will there be cut backs and layoffs in the Long Island solar industry?

While there is cause for concern, we are confident that the solar industry will remain strong, especially on Long Island.  Here is why:

Macro Trends

The macro solar trends are positive.  According to SEIA, against the powerful tide of the deep recession, grid-tied solar electric installations int he US grew 38 % in 2009 (graph pictured above).  SEIA’s 2009 Year in Review report explains many of the key industry trends.  Some salient points from SEIA’s report:

1. Solar equipment prices and installation costs are coming down significantly. We believe we are in the midst of a virtuous cycle of increasing scale and decreasing costs.  Upstarts and major established manufacturers are investing heavily in capacity expansion and R&D.  Installers are scaling up and increasing productivity.

• Module prices have declined 30 % in the past year.
• From 1998 to 2008, solar installation costs decreased on average by 3.6% per year, or $0.30, according to this DOE report, and the trend is   accelerating b/c of module price declines.
• Industry is laser focused on achieving grid parity – the point at which solar is competitive without subsidies.

2.  Public awareness of the technology is increasing dramatically. Grid-tie solar electric have a successful track record, and there is an expanding positive reputation.

3.  The public at large supports moving away from fossil fuels because of environmental and national/economic security reasons.  Polls suggest that the majority of the populace supports the country going solar above all other technologies.

4.  Political leaders support solar. President Obama is one of our greatest champions. After healthcare, the administration is more focused on energy issues.

• Last Thursday a representative from the white house called me to ask if the stimulus funding was helping our business and solar in general.  He initiated an ongoing dialogue.
• Locally, Congressman Israel and numerous state supporters are key.

5.  Prices of fossil fuels remained high during the recession, and from our point of view are poised to spike again once the economic recovery gains steam.

6.  Federal tax incentive for solar of 30% is in place until 2016.

7.  Impressive solar advocacy leadership.

• National level: SEIA is exceptionally well organized and has a notable track record.
• NYS level: LISEIA, NYSEIA, Vote Solar, ACE NY, RELI, Etc.  As a group they have a successful track record.
• We and our allies are gaining critical mass

8.  Critical for LI: LIPA CEO Kevin Law is a true supporter.

9.  SEIA identifies more than 6,000 MW of solar projects in the pipeline for 2010 and beyond in the U.S. (Chart below)

US PV Project Pipeline

There is no rosy picture here of guaranteed success – indeed there are no guarantees in life.  There are going to be ups and downs in the solar industry at large.  It is up to us to shape our future.  We have come far, and we have a long way to go.  Through hard work and ingenuity, we believe that there will be a bright future for solar and specifically for solar on LI.

Soon we will post specific ways for solar advocates to ensure solar’s success on Long Island.