May 18 - South Florida Sun-Sentinel



Thousands of homeowners and business owners who installed solar systems expecting to be reimbursed for the costs from the Florida Solar Rebate Program could be left footing the bill, if state lawmakers don't fund the program.

The state typically puts money into the program, created in 2006 and set to expire June 30. But last year, the federal government's American Recovery and Reinvestment Act provided one-time funding for the Florida program as part of the federal stimulus package -- amounting to $14.4 million in rebates for residential and commercial solar system installations.

This year, Florida once again was responsible for funding for the program. But state lawmakers failed to approve funding and the state has received more than 10,000 applications since the money ran out, according to the Florida Energy & Climate Commission, which runs the program.

The rebate program -- intended in part to jumpstart the solar energy industry -- offers homeowners rebates of $100 for solar swimming pool heaters, $500 for solar water heaters and $4 per watt of energy produced from eligible solar panel systems, up to $20,000 per homeowner. Businesses can qualifty for up to $5,000 for solar water heaters and up to $100,000 for solar panels.

 The federal government also offers a 30 percent tax credit for people who install eligible renewable energy energy systems to their homes.

Gov. Charlie Crist said last week that he's considering including the rebate program in the an upcoming special session. But it's unclear whether the issue will receive much attention because, according to Crist spokesman Sterling Ivey, the primary focus of the session would be on a constitutional amendment banning offshore drilling and passing a measure to require a portion of the state's electricity come from renewable resources.

Lawmakers approved a measure this year that allows local governments to issue bonds and provide loans to homeowners who install solar systems but it's unclear how long it would take to implement.

Thomas Genung, a Port St. Lucie attorney, took out a short-term loan to install a $35,000 solar panel system in his home. The loan carries a high interest rate if it's not paid off in one year. If the rebates go unfunded it "will significantly and adversely impact the financial future of my family. This may ultimately lead to me having to sell my home, and live in a more affordable home without solar," Genung wrote.

Steve Kaufman, director of renewable energy services at Kaufman Lynn general contractors in Boca Raton, said some homeowners and business owners have been taken in by solar-system installers who have been aggressively marketing the rebate program as a sure thing.

"These guys are putting ads in there telling people to 'hurry up and install your system now so you can get these rebates,' " Kaufman said. "I was telling my wife, 'Look at these jokers out there.' '"

Ted Verdone, a retired mechanical engineer who spent $41,400 to install solar panels and solar water heating for his pool and home in Oakland Park, said he felt misled by the state, not his solar installer, Jupiter-based Abundant Energy.

"You can't promise people something and not come through. I would think they would at least give some sort of communication telling people what's going on, when we can expect the money," he said. Since installing the system, his monthly electric bill decreased by roughly $50 to $100 but he said would not have installed it if he knew the rebates may not materialize.

Ed Strobel, president of Sunshine Solar Services in Fort Lauderdale, said the state ran out of money in June, six months before he was informed of it in late December. "Nobody knew the money was gone...so basically, all these people got in line," said Strobel, who is vice president of the Florida Alliance for Renewable Energy, which represents dozens of renewable energy companies, environmentalists and others.

There was a backlog in processing the applications but the state informed people in September, said Brittany Cummins, a spokeswoman for the Florida Energy & Climate Commission.

Some people oppose rebates and tax credits for home improvements because they're regressive: they require all Floridians to subsidize upgrades that renters and poor or fixed-income homeowners can't make. "To be clear, if someone wants to install $40,000 worth of solar panels on the roof of their house, I'm all for it. I just don't want low income Floridians to have to pay for it," Adora Obi Nweze, president of the Florida State Conference of Branches of the NAACP, wrote earlier this year.

Kaufman said people like him who install solar panels are typically those who can afford the expense. But he said far more people install solar water heaters, which cost about $5,000. He said the $500 state rebate for that doesn't make much of a difference.

Information about the solar rebate program is available at SunSentinel.com/energycommission or by calling the commission at 850-487-3800.

Julie Patel can be reached at 954-356-4667 and jpatel@sunsentinel.com.

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