LIPA Poised to Become First Utility in State to Launch Commercial Net
Metering to Encourage More Use of Solar Energy
LIPA President Law commends Governor Paterson and State Legislature for
passing bill to authorize net metering changes statewide
Uniondale- NY- June 20th, 2008- The Long Island Power Authority (LIPA)
is amending its electric service tariff to further encourage the use of solar
generating resources and will become the first utility in the state to make
commercial net metering available to commercial customers.
Under the proposed changes, LIPA will introduce new tariff provisions to
allow for net metering of energy for commercial customers who install solar
generating equipment at their facilities and would expand existing tariff
eligibility provisions for net metering to residential customers as well.
LIPA’s tariff will conform largely to the legislation spearheaded by Long
Island lawmakers Senator Owen J. Johnson and Assemblyman Steve Englebright that
recently passed both houses of the Legislature and that authorizes utilities to
implement these changes statewide.
Under LIPA’s existing net metering program, residential customers who
generate electricity with solar power can in effect see their electric meters
“spin backwards” and receive full credit for the electricity they generate with
an opportunity to sell back any excess power they produce to LIPA. Net metering
provides a significant economic incentive to customers considering the
installation of solar generating resources in their homes and businesses.
“This legislation will help Long Island businesses and other businesses
throughout the state become eligible for the same advantages residential
customers already enjoy,” said Governor David A. Paterson, who called for an
expanded and enhanced net metering law earlier this year as one of 16
recommendations from his Renewable Energy Task Force. “Expanding net metering
opportunities to commercial customers will lighten the load on the utility grid
and give us another renewable option as we continue to wean ourselves from our
reliance on fossil fuels and foreign oil.”
“Including commercial customers, and expanding eligibility requirements for
residential customers under LIPA’s net metering program is a key part of our
continuing efforts to promote the use of renewable sources of energy,” said LIPA
President and CEO Kevin S. Law. “As we move forward in these tough economic
times when fuel prices continue to soar, it’s important we give all of our
customers the same opportunity to reap the rewards of using solar energy
resources in their homes and businesses.”
Law added that he expects these modifications to generate a significant
number of “green collar” jobs for renewable energy manufacturers and installers.
LIPA hopes to generate the momentum for a market transformation on the
commercial side, as it already has for installation of residential solar power
systems under its successful Solar Pioneer Program that has seen the
installation of more than 1,200 photovoltaic systems since the program’s
inception and has resulted in more than $30 million in customer rebates. Just
last month, Governor David Paterson and Law announced an RFP seeking the largest
block of solar power (50 MW) in the state, to be generated on island, and
produce enough energy to power approximately 6,500 homes and reduce carbon
dioxide emissions by 20,000 tons.
"As long-time advocates for clean renewable energy technologies, we are
thrilled to finally see that all Long Islanders will now be able to lower their
electric bills and even sell excess solar power back to LIPA," said Gordian
Raacke, Executive Director of the not-for-profit Renewable Energy Long Island (RELI).
"Kevin Law must be commended for making Long Island the first region in the
state to enact this simple and sensible policy."
“We’re looking forward to working side by side with LIPA to make Long Island
the solar capital of New York State,” said Kevin MacLeod, Chairman of the Long
Island Solar Energy Industries Association (LISEIA). “We applaud Kevin Law for
his leadership in moving solar power forward.”
“At a time of skyrocketing fuel prices and increasing global warming, clean,
renewable energy makes more sense now than ever," said Neal Lewis, Executive
Director of the Neighborhood Network. “This vote by the State Legislature to
provide the mechanism for commercial businesses to tap renewable energy
resources is historic. Today’s announcement by LIPA means that Long Island can
lead the state in implementing commercial net metering. This is a strong
demonstration of leadership by LIPA that will create ‘green collar’ jobs locally
while providing long-term relief to local businesses hit by skyrocketing fuel
costs.”
“This will allow businesses to take advantage of the opportunity to sell
power back to LIPA and reduce operating costs,” said Desmond Ryan, Executive
Director of the Association for a Better Long Island (ABLI). “As our region
continues to struggle under the weight of high property taxes and the exodus of
our highly-educated and skilled workforce for less expensive pastures, this
opportunity for LIPA’s commercial customers could not have come at a more
appropriate time.”
Under LIPA’s current tariff the net metering program is not available to
business customers. In addition residential customers are limited to the amount
of solar they can install and still be eligible for net metering. The proposed
amendments would include the following:
- To authorize net metering for non-residential customers with an overall
capacity of up to the lesser of the customers peak demand, or 2MW
- Increase the overall capacity for net metering on residential solar
customers from 11kW to 27.5 kW
- Increase the combined total allowed overall capacity for residential and
non-residential net metering on LIPA’s transmission and distribution system
from 3.6MW to 51.2 MW
Law commended state lawmakers for passing the legislation to expand the net
metering provisions statewide. “By loosening the state’s net metering
restrictions, the Legislature is allowing for the expansion of the use of solar
power, which will no doubt lead to positive impacts economically and
environmentally,” Law said.
Fore more information on LIPA’s net metering program visit
www.lipower.org
|
