LIPA Increases Funding for Renewables and Creates New Solar Thermal Program
Solar Industry Continues to Grow and Cost of Installation Decreases
LIPA Restructures Solar Rebate Program to Address Current Changes In Solar
Market
(Uniondale, NY) The Long Island Power Authority has released its proposed
2010 Operating Budget which includes a 37% increase in funding for Energy
Efficiency and Renewable Energy Programs including a 22% increase for LIPA’s
Solar Pioneer and Entrepreneur Programs. In addition, LIPA has created a new
Solar Thermal program, a clean, renewable energy technology that uses the sun's
energy to heat water. These programs offer residential, commercial and
not-for-profit customers the incentives needed to invest in sustainable energy
sources and the ability to reduce their electric usage and utility costs over
the long term.
“As we operate in a fiscally conservative environment, LIPA must continue to
invest in renewable power,” said Kevin S. Law, President and CEO of LIPA. “We
have increased funding in our renewable programs providing incentives to more
residents and businesses and helping to create more clean energy jobs while
reducing greenhouse gas emissions and our reliance on fossil fuels.”
Since 2000, LIPA has rebated over $52 million for the installation of solar
systems. LIPA’s solar programs have assisted in transforming the solar market on
Long Island, increasing the amount of solar contractors from 2 part-time
individuals to over 60 companies and providing the financial incentives to
install more than 2,100 solar systems making Long Island a national and state
leader in solar installations. As the solar market continues to evolve and
develop, LIPA has found it necessary to modify its rebate structure seven times
during the tenure of the program.
While LIPA has increased its investment in its solar programs, the declining
cost of installation, unprecedented demand for solar systems and continued
federal, state and local tax incentives provide LIPA the opportunity to once
again adjust its rebate structure to keep it in line with the ever changing
solar market. Since 2000, solar customers have seen a decline in the amount of
investment needed to participate in solar energy. Then, the average customer was
paying approximately 54% of the installed cost of a system. Presently, solar
customers are paying only 32% of installed costs. In an effort to reach more
customer participation in LIPA’s solar program, LIPA has instituted a 50% rebate
cap on installed costs ($3.50/watt or 50% installed cost-the lesser of the two)
of PV systems.
LIPA will further restructure its commercial and residential solar rebates
effective January 1, 2010. The current $3.50/watt rebate on residential and
commercial systems up to 10 kW will be reduced to $2.75/watt. This reduction is
consistent with other solar rebate programs like NYSERDA, which reduced its
rebate to $2.50 for residential and commercial customers (up to 4 kW and 10 kW
respectively) in October of this year. “The new rebate incentives will continue
to provide substantial funding for the installation of solar systems but will
also allow for many more consumers to participate in investing in this
sustainable energy source,” said Law
"Solar installers have anticipated a reduction in the rebate for some time,"
said Sail Van Nostrand, Owner of Energy by Choice and a member of the Long
Island Solar Industries Energy Association. "With LIPA offering some of the
highest rebates in the state, if not the entire country they are now coming in
line with the industry standard of offering a cap as percentage of costs. This
restructuring will help to spread LIPA's solar budget to more customers."
Under Kevin Law’s leadership, LIPA has continued to increase its investment
and commitment to renewable energy,” said Gordian Raacke, Executive Director of
the not-for-profit organization Renewable Energy Long Island. “To get the
biggest solar bang for the buck, LIPA needs to adjust its rebates to the rapidly
growing solar market. The planned expansion of LIPA's solar budget for 2010
coupled with a reduction in rebate levels simply means that a greater number of
customers can take advantage of LIPA's Solar Pioneer and Entrepreneur Programs
and install solar roofs at a much reduced cost.” |
