Solar Rebates and Incentives

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Home solar panels doubled electric output last year

Wednesday, April 21st, 2010

Homes generated twice as much power from rooftop solar panels last year than in 2008, says a new report by the solar power industry.

These photovoltaic (PV) systems were buoyed by expanded federal tax credits and falling PV prices, causing them to produce 156 megawatts of electricity in 2009, up from 78 megawatts a year earlier, according to the Solar Energy Industries Association.

“Despite the Great Recession of 2009, the U.S. solar industry had a winning year and posted strong growth numbers,” Rhone Resch, the group’s president and CEO, said in the announcement. “We expect 2010 to be a breakout year for the U.S. solar industry.”

Last year, the U.S. government lifted its $2,000 tax credit cap on residential solar panels (also on windmills and geothermal heat pumps), allowing homeowners to deduct 30% of their total costs. Also, the report says, the price of PV modules has fallen more than 40% from mid-2008.

Still, solar energy continues to provide only a tiny amount of U.S. electricity — less than 1% of the total.

Schools continuing to embrace solar energy

Wednesday, April 7th, 2010

Homeowners aren’t the only ones saving considerable amounts of money on their electric bills with help from solar energy. Taxpayers in many parts of the country are seeing the benefits as well, with a growing number of schools and other institutions saving money by installing photovoltaic panels.

One of the latest examples comes from Amesbury, Massachusetts. A report in the Newburyport Daily News notes that the town’s high school is set to receive a $150,000 energy efficiency and block grant that will be used to install photovoltaic panels.

The newspaper added that the system is expected to generate 35 kilowatts of electricity and that the array will be installed on the school’s cafeteria.

Many other schools around the country have invested in their own solar panels to save money and help improve the environment. When educational institutions go solar, they have the added benefit of providing a new learning tool for students who can get a firsthand look at clean energy generation.

Elsewhere, a number of businesses have also chosen to take advantage of state and federal tax incentives by investing in money-saving solar energy technology.

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Solar power incentives help support businesses who want renewable energy

Sunday, April 4th, 2010

READINGTON — Several solar projects are rising at Central Jersey businesses as state and federal incentive programs help cover their costs.

The projects are a way for businesses to cut energy costs, said Jim Lacanna, business management developer for Global NES, a North Brunswick-based solar energy consulting company. That could mean more jobs in New Jersey — for those working at the cost-saving companies and those installing solar panels, as well as a cleaner environment as companies use their own energy instead of relying on fossil fuels.

New Jersey has more solar panels per square mile than any other U.S. state, Board of Public Utilities Commissioner Joe Fiordaliso said. Now, with subsidies such as rebates and credits, solar energy is becoming a possibility for more business owners, large and small. Renewable energy sources such as solar panels will help pave the way to a better environment, he said.

Solar panels, which tend to have a high set-up cost, might make more sense for businesses, which typically use more power than residences, said Michael Kerwin, president of the Somerset County Business Partnership. The payoff for solar panels on businesses may be a few years versus more than a decade for some households.

“You cannot do a solar project without some kind of subsidy. The trick is how to get there?” Kerwin said. “At the end of the day, you have to go through the analysis and ask yourself, “Does this make economic sense?’ ”

Readington River Buffalo Farm, off (Hunterdon) County Route 523, recently secured several solar panels to the side of a barn that protects John Deere tractors and other equipment. Now the farm has the power to harvest the sun, which will provide 100 percent of the farm’s energy.

“We are trying reduce our footprint and only leave a finger print,” Scarlett Doyle said about producing the farm’s 40,000 kilowatt hours of energy from the sun.

Readington River Buffalo Farm’s project cost approximately $275,000, said Jerry Doyle, who owns the 300-acre preserved farm with his wife, Scarlett and son Eric. In addition to the credits and rebates, the Doyles are applying the $600 they had been spending monthly on electric costs to repay the loan for the system, Jerry Doyle said. But once the loan is paid off — in five years — the price of the sun – unlike oil and gas – will be free.

Solar heaters to get rebates in Connecticut

Monday, February 1st, 2010

The Connecticut Clean Energy Fund is offering immediate rebates to homeowners, businesses and organizations that purchase solar-powered hot water heaters when they work with an approved contractor. Under the new federal program, homeowners and businesses gather cost estimates from a list of eligible contractors, who evaluate how much energy is generated from sunlight at the home or business during the winter months.

According to the Connecticut Clean Energy Fund Web site, rebates could be as much as $4,800 for a large house. The more energy generated by the sun, the bigger the rebate.

Using a solar path finder, a contractor measures the shading in a house and enters the information into a computer program to determine how much energy (in BTUs) the solar thermal hot water heater is likely to get from the sun.

Solar water heaters get a $350-million boost in California

Friday, January 22nd, 2010

California regulators approved a $350-million rebate offer today to encourage homes and businesses to install water-heating systems powered by solar energy.

The state Public Utilities Commission established the California Solar Initiative Thermal Program, which will use $250 million to replace natural-gas-powered water heaters, with $25 million set aside for low-income customers. An additional $100.8 million will be used to swap out water heaters powered by electricity.

The incentives will decrease steadily over eight years until Dec. 31, 2017, or until the funds run out. The rebates will begin retroactively in August 2009.

The program could result in systems that displace 585 million therms of natural gas, or the equivalent of placing a solar water heater on 200,000 single-family homes, according to the commission. It could also lead to systems that displace 275.7 million kilowatt-hours of electricity per year.

Mass. unveils new solar-rebate programs

Thursday, December 31st, 2009

Massachusetts energy officials unveiled the heirs apparent to its wildly successful Commonwealth Solar rebate program, using a mix of ratepayer funds and stimulus money to pay for the incentives.

Dubbed Commonwealth Solar II and Commonweath Solar Stimulus, the programs aim to fill the gap in financial incentives left when the first, $68 million Commonwealth Solar program ran out of money in October — more than two years ahead of schedule.

At the time, solar installers told the Boston Business Journal they were concerned the lack of incentives would stop projects from moving forward.

Commonwealth Solar II will provide rebate incentives for small residential and commercial systems, with total allocations up to $4 million per year. This program will be funded through the Massachusetts Renewable Energy Trust, which managed the last Commonwealth Solar program and is funded by a surcharge on electricity bills.

For larger projects, state officials plan to tap $8 million in state energy plan funding from the American Recovery and Reinvestment Act to provide rebates to projects.

Both programs are expected to begin in late January.

Massachusetts quickly burns through $68m in solar rebates

Friday, December 4th, 2009

A $68 million state fund to provide sizable rebates to homeowners and business owners who install solar panels was expected to last three or four years. But the program – offering homeowners rebates that averaged more than $13,000 – proved so popular that the $68 million was tapped out in October, just 22 months after the program began.

Pleasantly surprised by the overwhelming demand, Massachusetts officials are developing a successor to the original program, dubbed Commonwealth Solar, and hope to have it ready by Jan. 1. Officials are trying to make the new subsidies as generous as the original ones.

Solar Power Heavily Forecast in North Carolina

Thursday, November 19th, 2009

North Carolina could meet a substantial portion of its electricity needs from the sun, according to a new report by Environment North Carolina Research and Policy Center. The study, “Growing Solar in North Carolina,” projects increasing numbers of solar farms and nearly 700,000 solar panels on top of homes and businesses in the next twenty years, including 100,000 solar roofs in the Triangle alone.

“Move over Sunshine State,” said Elizabeth Ouzts, State Director of Environment North Carolina and co-author of the report. “With 250 days of sunlight each year, the forecast for solar energy in North Carolina is bright.”

With nearly as much annual solar energy intensity as Florida, North Carolina’s solar potential is vast. But it is limited by the availability of roofs and land suitable for solar systems and the speed with which new projects can be installed. Taking these factors into account, Environment North Carolina determined that solar power could supply 2 percent of the state’s electricity needs by 2020, and 14 percent by 2030.

Last year North Carolina’s solar installations grew more than six-fold, catapulting the state to one of the nation’s leaders in solar power. The state’s growth in solar power was fueled largely by a 2007 law requiring a certain percentage of solar power. If all announced solar power projects are completed, solar capacity will grow another six-fold by the end of 2010.

The Environment North Carolina analysis assumes a modest growth rate in solar capacity between 2010 and 2030, but new policies to promote solar power will still be required to achieve 700,000 solar roofs. The report recommends reinstating the solar manufacturing tax credit and requiring all of the solar power mandated in the state’s 2007 law to come from in-state sources.

Demand for solar energy subsidies puts stress on New York state program

Wednesday, November 18th, 2009

More New York homeowners than ever want to put solar panels on their houses.

That should be good news for the 174 contractors registered with the state to install solar photovoltaic systems. But the demand has put such a strain on subsidies for residential solar that the state has reduced the amount offered, hoping to make a dwindling pot of money last through the end of the year.

A new round of funding for 2010 and beyond has not yet been approved, and that leaves solar power installers hanging. They can’t sign up customers until they know what the subsidy will be. And without customers, an emerging industry employing between 800 and 1,000 people statewide can’t create more “green-collar” jobs.

Solar is popular for a couple of reasons. The price of solar panels is coming down due to increased production in China and falling prices for materials. It’s also easier for people with solar installations to sell their surplus electricity back to the grid.

On Oct. 13, to keep the money from running out, NYSERDA cut the incentives for residential solar photovoltaic installations from $3 per watt to $2.50 per watt, up to the first 4 kilowatts. Incentives for commercial and nonprofit solar power installations also were cut.

In one day, the agency was flooded with applications — several installers heard it was more than 100, though NYSERDA will only say it was “quite a few.” Some installers were left with the impression those applications would soak up whatever money was left in the solar incentive program.

Why Solar Rebates Are Becoming Extinct

Tuesday, November 17th, 2009

Solar rebate programs are winding down. Austin Energy cut solar rebates for homeowners by a third. Xcel Energy will cut its rebate program by about 50 percent. The Long Island Power Authority made an immediate cut in its rebate program, and one scheduled for January. New York reduced its solar incentive by 50 cents per watt in October. Massachusetts closed its rebate program, and California is gradually decreasing its incentives. Australia also stopped its rebate program. However, a 30 percent federal tax credit still exists.

Popularity and the impact on budgets are the reasons why rebates are being reduced.

Solar rebates were meant to “jumpstart the industry,” said Xcel spokesperson Tom Henley. Now it is time to “help maintain it as a viable industry.”

In 2005, New Jersey ran out of funds for its solar power grant program. The program covered up to 60 percent of a solar power system’s cost. Rebates were lowered a number of times, and projects were put on hold. Installers reported layoffs. The state decided to create an incentive structure based on Solar Renewable Energy Credits (SRECs). The state purchases a certain amount of power from solar power system owners to meet their Renewable Portfolio Standard requirements. The state is currently creating 15-year contracts for the program.

“We looked at what was happening and it was pretty clear that the program was unsustainable. We just couldn’t fund — with taxpayer money — all of the demand we were seeing,” said Lance Miller, chief of policy and planning for the New Jersey Board of Public Utilities (BPU). 7

“When you look at the numbers, it’s clear that systems are getting installed,” said Miller. “Things are not exactly where they should be, but it’s better than having a rebate program that is continually running out of money. We’re still working on making this better.”

“New Jersey is certainly having some issues — that’s apparent. But they’ve done a great job in looking at creative alternatives that will get us beyond rebates,” said Shaun Chapman, east coast campaigns director for the Vote Solar Initiative. “Is that any consolation to the business-owner who’s having trouble getting jobs done? Probably not. But it’s important to use that experience so others can move in a different direction.”