NYSEIA News

Solar Association Urges PSC to Approve Increased Funding at Dec. 16 Meeting

ALBANY, Dec. 15, 2009 -- The New York Solar Energy Industries Association (NYSEIA) is calling on the Public Service Commission (PSC) to increase proposed levels of incentives available for solar energy projects in New York that are funded by the state’s renewable portfolio standard (RPS) program.
With the state PSC scheduled to consider RPS funding at its meeting Dec. 16 in Albany, the association urged the following actions:

• Increasing the recommended incentive levels for solar electric projects to support a growth rate of at least 40 percent per year, noting that growth has been 60 percent annually for the last five years. Incentives would decrease over time as solar costs continue to decline.
• Transitioning to an incentive model that rewards actual system production, rather than up front rebates that are currently based on estimated production. This would lessen the short-term impact on taxpayers.
• Including solar thermal systems that generate heat for water and space heating as an eligible technology under the RPS

According to NYSEIA President Ron Kamen, the current PSC staff-recommended incentive levels of $24 million for solar electric projects over the next five years (published in the PSC mid-course review of the RPS program) need to be increased to prevent a contraction of the solar energy industry in New York and potential loss of clean energy jobs.

“NYSEIA supports secure and reliable solar incentives to ensure the continued growth and private investment in the clean energy businesses that are so vital to the state’s economic recovery,” Kamen said. “Solar projects are shovel-ready and carry considerable added value to New York’s economy and environment. The PSC’s decision on this critical issue will affect the lives of hundreds of New York families currently employed by this burgeoning industry and can create thousands of new jobs in the near future. The time is now for the PSC to take bold and visionary steps to ensure this industry not only survives, but expands.”

The PSC adopted an RPS in 2004 with a 25 percent target by 2013. Funding is generated through a surcharge on each kilowatt-hour sold by the state’s investor-owned utilities and is managed by New York State Energy Research and Development Authority (NYSERDA).
NYSEIA has submitted comments to the Commission calling for a clear vision and solar specific goal, with increased solar incentives that will support a continued growth rate of at least 40 percent per year.

NYSEIA proposes that incentives decrease over time as solar installation and material costs continue to decrease and the industry gains price parity with existing electric generation and transitions to mainstream acceptance.

NYSEIA also supports an overall transition to an incentive model that rewards actual system production rather than up front rebates that are based on estimated production.
“This type of approach would have a lesser short-term impact on ratepayers, open private financing streams into solar project development, and create a market for larger solar system sizes that are so vital to the expansion and growth of the industry,” said Kamen.

NYSEIA also supports the PSC staff recommendation that $4.3 million per year be allocated to Solar Thermal systems, which generate heat for water and space. The PSC staff proposed having New York join 13 other states that include Solar Thermal as an eligible technology under the RPS.

NYSEIA recommends that the PSC and NYSERDA continue to work with the statewide Solar Thermal Consortium to develop a Solar Thermal Roadmap that will establish New York as a national center for this fast growing technology sector.

“NYSEIA applauds the PSC and its staff for recommending that solar thermal should be included in the RPS. This is a major step forward in the RPS program and state energy policy as a whole,” said Kamen.

About NYSEIA
Founded in 1994, NYSEIA is the state solar membership trade organization representing over 190 companies involved in the manufacture, design and installation of solar technologies throughout the New York. NYSEIA works to advance sensible policies that promote the advancement of solar electric and solar thermal markets throughout the state while providing its members companies with an array of services designed to help them succeed, profit and grow. For information, visit www.nyseia.org

Media Contacts:
Sandy Frinton            (845) 454-3895        NYSolarNews@gmail.com

Ron Kamen                (917) 453-5740         Ron.Kamen@EarthKindSolar.com

Last changed: Jan 21 2010