What Will Happen to Long Island’s Solar Industry?

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?

Read more…

EmPower’s Commercial Solar Webinar

On Wednesday, April 14, David Schieren (EmPower’s CEO) hosted a webinar on commercial solar systems.  EmPower will be hosting more free webinars and free community seminars.  Check back to our website regularly to find out when and where our next events will be held.

Some of the topics covered in the commercial solar webinar were:

1. Benefits to Business
2. Pricing & Financing
3. Rebates &  Incentives
4. Ideal Solar & Roof Conditions
5. Plenty of Sample Solar System Pictures

You can view a recording of the webinar below.