A world of possibilities

Posted 8/21/12

Opportunities for solar development are evolving so rapidly In New York State, it’s hard to keep up with all of the initiatives on offer. According to NYSERDA, the New York State Energy Research …

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A world of possibilities

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Opportunities for solar development are evolving so rapidly In New York State, it’s hard to keep up with all of the initiatives on offer. According to NYSERDA, the New York State Energy Research and Development Authority, solar is expanding in New York at three times the national rate of growth. A quick trip to the NYSERDA website (www.nyserda.ny.gov) revealed a number of new programs, now consolidated under the title NY-Sun, a $1 billion initiative designed “to advance the scale-up of solar and move New York State closer to having a sustainable, self-sufficient solar industry.” With its own website (www.ny-sun.ny.gov), NY-Sun is a good starting point to research your options and eligibility for incentives like low-interest loans and tax credits, review the steps in the process and identify a qualified installer.

If you are looking to install solar generation on a single-family residence or multi-family residence of four or fewer units, there are smart energy loans with affordable interest rates and repayment periods of five, 10, or 15 years. The on-bill recovery option lets you repay the loan on your monthly utility bill. Small businesses and non-profit organizations can also access low-interest financing; a NYSERDA-qualified installer can file the financing application on your behalf. New York offers an investment tax credit for up to 25% of the cost of a new, grid-tied system, capped at $5,000. And Congress just extended through 2019 the Federal Investment Tax Credit on solar, which applies to 30% of the cost. For low- to moderate-income homeowners, who may not benefit from the tax credits and may have difficulty borrowing money for a solar installation, NYSERDA recently introduced the Affordable Solar program, which doubles the available incentives for households whose total income is less than 80% of the Area Median Income (AMI). AMI varies from county to county; data is available at the NY-Sun website. Farmers can access USDA Rural Energy for America (REAP) Grants that will cover up to 25% of the cost of installation, not including costs covered through other programs such as NY-Sun.

I am most excited about new opportunities in the category of community solar, which includes innovative strategies for homeowners, businesses and whole neighborhoods. The NYS Public Service Commission issued an order in July 2015 that allows New Yorkers to form consortiums with their residential and commercial neighbors to share a community-scale solar installation, a configuration that solves the problem of individual home or business owners who don’t have a sufficient solar resource on their own property. The solar developer might build the system through investor financing and sell the electricity to the consortium members through a power purchase agreement (PPA), or the consortium members can develop their own financing and own the facility. Done right, this systematic approach gives landowners a level of control over the siting and financing of the project, encourages local investment, and can create energy districts that will contribute to the overall resiliency and reliability of the electrical grid, and dovetail with other projects of regional significance.

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