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.”

LIPA, a non-profit municipal electric provider, owns the retail electric Transmission and Distribution System on Long Island and provides electric service to more than 1.1 million customers in Nassau and Suffolk counties and the Rockaway Peninsula in Queens. LIPA is the 2nd largest municipal electric utility in the nation in terms of electric revenues, 3rd largest in terms of customers served and the 7th largest in terms of electricity delivered. In 2010, LIPA outperformed all other overhead electric utilities in New York State for frequency of service interruptions, and ranked second for duration of service interruptions. LIPA does not provide natural gas service or own any on-island generating assets. More information about LIPA can be found online at: http://www.lipower.org.

Media Contact Information
Mark Gross
Phone - (516) 719-9892
Media Pager - (516) 229-7248
media.relations@lipower.org

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