LIPA lowers solar rebates

August 6, 2013 | By Barbara Vergetis Lundin

The Long Island Power Authority (LIPA) is restructuring the incentives associated with its solar programs.

Credit: Corrugate/Wikimedia Commons

The declining cost of installation, the continued growth of solar contractors on Long Island, and the ever-increasing demand for solar systems has made it necessary for LIPA to adjust its rebate structure to keep it in line with the growing solar market.

"LIPA is encouraged that it has continued to attract high numbers of customers interested in solar energy. The growing interest and availability in the marketplace for solar installations, together with the availability of other local, state and federal tax incentives, make it reasonable for LIPA to adjust its incentive structure," said LIPA Chief Operating Officer John McMahon.

As the industry moves closer to market transformation, leaving solar at its lowest cost since the programs began in 2000, LIPA has made adjustments in the Solar Pioneer rebate program, explaining that the adjustments are necessary in order for LIPA to work within its budget while continuing to allow for the deployment of solar throughout Long Island and provide support for the solar industry. The success of these programs remains a key factor in driving down the price of solar.

LIPA has lowered its rebates to $0.99/AC watt (equivalent to $0.75 per DC watt for a typical system) for residential customer-owned or leased solar systems. In addition, LIPA has lifted its contractor cap for the amount of solar systems allowed per company. This cap was originally put in place to help stabilize the program to address the rapid demand for solar and allow for more LIPA customers to participate in the program.

The new rebate incentives will continue to provide funding for the installation of solar systems but will also enable many more consumers to participate in investing in renewable energy, and the restructured rebate will remain in effect until market conditions dictate the need for LIPA to modify the rebate again, LIPA says.

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http://www.fierceenergy.com/story/lipa-lowers-solar-rebates/2013-08-06