On Earth Day 2001, Governor Pataki announced the LIPA/Fala
solar project at a ceremony at Fala. At that time, he applauded
both LIPA and Fala’s initiative in helping to demonstrate how
solar power can be used as a low-cost, dependable and renewable
energy alternative by large commercial electricity consumers.
Fala, long recognized as a pioneer in the use of advanced
technologies for its direct mail business, decided to install
the $6.1 million solar system with LIPA agreeing to provide a
one-time $4.1 million research grant to help underwrite the
capital cost of the system, and allowing LIPA the opportunity to
evaluate the impact of such large renewable generating asset
upon its daily grid operations. According to Fala’s Chief
Operating Officer Stephen Paladino, who has primary
responsibility for coordinating his company’s involvement in the
project, the solar system was initiated in what would be a
particularly significant year, both for the nation and the
direct mail industry.
LIPA's Clean Energy Initiative
When fully operational, the output from the solar power
system is projected to reduce Fala’s peak load requirements by
an approximately 33%. The energy savings and clean air benefits
are exactly what Governor Pataki had in mind in May 1998 when he
directed LIPA to implement its Clean Energy Initiative (CEI),
which promotes energy conservation and efficiency, and the
development and use of alternative energy technologies.
LIPA’s CEI was designed as part of the Governor Pataki’s plan
to lower Long Island's electric rates - which at the time were
the highest in the nation - by an average of 20 percent through
the takeover of LILCO's retail electric business by LIPA.
Through its CEI, LIPA has been actively engaged in developing
the use of wind, solar, geothermal and fuel cell technologies as
renewable energy resources for Long Island. LIPA initiated a
Solar Pioneer program to spur the use of residential solar units
and has provided over $5.2 million in rebates for 203 units
Islandwide. Additionally, LIPA has provided for the installation
of another 49 residential units through two lottery programs.
LIPA also co-funds a technical support and training programs at
Farmingdale University to encourage wider use of solar power by
building trade allies. To date, 78 electricians have attended
the training sessions to learn how to properly install and
maintain residential solar systems.
LIPA's Clean Energy Initiative
When fully operational, the output from the solar power system is
projected to reduce Fala’s peak load requirements by an
approximately 33%. The energy savings and clean air benefits are
exactly what Governor Pataki had in mind in May 1998 when he
directed LIPA to implement its Clean Energy Initiative (CEI), which
promotes energy conservation and efficiency, and the development and
use of alternative energy technologies.
LIPA’s CEI was designed as part of the Governor Pataki’s plan to
lower Long Island's electric rates - which at the time were the
highest in the nation - by an average of 20 percent through the
takeover of LILCO's retail electric business by LIPA.
Through its
CEI, LIPA has been actively engaged in developing the use of wind,
solar, geothermal and fuel cell technologies as renewable energy
resources for Long Island. LIPA initiated a Solar Pioneer program to
spur the use of residential solar units and has provided over $5.2
million in rebates for 203 units Islandwide. Additionally, LIPA has
provided for the installation of another 49 residential units
through two lottery programs. LIPA also co-funds a technical support
and training programs at Farmingdale University to encourage wider
use of solar power by building trade allies. To date, 78
electricians have attended the training sessions to learn how to
properly install and maintain residential solar systems.
Annual Savings
Fala is expected to save approximately $120,000 annually on its
electric costs. In addition to generating electricity, the PV system
will further insulate the buildings, thereby reducing the costs of
heating and air conditioning, which is estimated to save and
additional $20,000 per year. It will also protect and extend the
life of the existing roofs.
Fala will save an additional $160,000 per year through other
conservation measures such as lighting energy management systems,
variable speed air compressor replacement and heating and air
conditioner upgrades. These additional conservation measures will
cost Fala approximately $875,000 of which $140,000 will be rebated
by LIPA as part of LIPA’s energy conservation rebates through its
CEI.
The combined savings realized from the electricity generated by
the PV system, the savings derived from Fala’s conservation measures
and the savings that will result from lower roof top maintenance
costs and better insulation is approximately $305,000 per year. Over
the next 25 years Fala could save as much as $12 million dollars in
energy costs, when adjusted by 2.5 percent per year for inflation.