NYSEIA News

ALBANY, NY, March 25 – Immediate action is needed to reverse the dramatic slowdown in the New York Solar Industry since the NYS Public Service Commission (PSC) implemented changes to NYSERDA’s PV program, according to New York Solar Energy Industries Association (NYSEIA).

Responding to information supplied by New York State Energy Research and Development Authority (NYSERDA) after a formal industry request, NYSEIA found that the solar industry’s robust 57 percent annual growth rate has been “slammed on the brakes” by the program changes.

NYSERDA reported that average PV applications for January and February of 2010 were only $1.5 million per month, a drastic reduction from the 2009 average of over $5 million per month. Total PV program applications in the first two months of 2010 were down 40 percent from the 2010 average and are down 70 percent from the same period in 2009.
 
“It is unfortunate that the program has been cut back at this crucial time in our state’s economic development,” said Gail Markels, NYSEIA Executive Director. “The need for clean energy jobs has never been greater and the program reductions are causing great concern for the future of the solar industry in the state.”

In an interim order to keep the PV program alive while it debated its overall realignment of the Renewable Portfolio Standard (RPS), the PSC ordered that the PV program be reduced to $24 million on Jan. 10. Rebates were lowered to $1.75 per watt, installation sizes were limited to a maximum of 5 KW and the total program was capped at $2 million per month.

NYSERDA reported that program applications for January were $1.9 million. Application totals dropped to $1.1 million in February, and there were only $314,000 of applications submitted through March 13.

NYSEIA President Ron Kamen, senior vice president of EarthKind Solar, said that the industry’s survival is due in no small part to the $41 million of American Recovery and Reinvestment Act (ARRA) funding that NYSERDA has approved for PV projects, specifically:

• PON 1613: $16 million of ARRA funding for 65 PV projects
• PON 1686: $10 million to five companies (seven projects) that will result in approximately 6 MW of PV
• $15 million in ARRA funds that are being used to support the interconnection of the PV resulting from the LIPA 50MW PV program.

In addition, he also expressed gratitude for the $6 million of funds from the Regional Greenhouse Gas Initiative (RGGI) that will be used to support LIPA solar program incentives, and another $6 million in RGGI funds will support the upstate PV incentive program.

“Unfortunately, the issue with ARRA funding is that this is a one-time deal,” said Kamen. “In addition, future funding from RGGI is also not guaranteed. So, without a long term plan, the industry faces the prospect of another impending down cycle next year.”

NYSEIA said that one promising PSC initiative that could help make up a part of the program differential is the PSC’s $30 million per year “Geographic Equity” funding for downstate consumers.

“We urge the PSC to ensure that the Solar Energy industry continues to grow and to show that New York State continues to be committed to being a leader in the clean energy economy by using the $30 million per year to primarily fund PV projects,” said Markels.
 
To get the industry back on track, NYSEIA urged NYSERDA and the PSC to immediately increase the current 5 KW program cap to 10 KW and to increase the rebate by 25 cents to $2 per watt. “Then they should adjust the rebates monthly depending on the market reaction,” said Markels.

NYSEIA also called on the NYS Legislature to pass a Solar Jobs Act that would put the state on a clear trajectory toward 5,000 MWs of PV by 2025.

 “New York State has been making progress toward achieving its clean energy goals through solar,” said Kamen. “The 50 MW LIPA and 100 MW NYPA solar power purchase agreements, the Net Metering fix, and passage of the Property Assessed Clean Energy (PACE) and Green Jobs Green New York acts are all great steps in the right direction”.

“Now it’s time to put in place a clear, long-term solar program that will create jobs, increase our energy independence, and provide the long-term consumer savings that will result from sensible investments in renewable energy,” said Kamen. “Passing the 5,000 MW Solar Jobs Act will stabilize the industry and create the future we all want and need”.

About NYSEIA

The New York Solar Energy Industries Association, founded in 1994, is the only statewide non-profit membership and trade association dedicated solely to advancing solar energy use in New York State. For information, visit http://www.nyseia.org

Media Contacts:
Ron Kamen                  (917) 453-5740           ron(dot)kamen(at)earthkindsolar(dot)com          
Sandy Frinton              (845) 454-3895           NYSolarNews(at)gmail(dot)com
Gail Markels                 (917) 364-4760           gail(dot)markels(at)nyseia(dot)org         


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Last changed: Mar 26 2010