NYSEIA Calls on New York Public Service Commission to Provide Bridge Solar Electric Funding to Prevent Job Loss

Online, January 13, 2010 (Newswire.com) - ALBANY, NY, Jan. 12 - In response to state solar electric incentive cutbacks, New York Solar Energy Industries Association (NYSEIA) today called for the New York Public Service Commission (PSC) to authorize $4 million per month as bridge funding for the state's Photovoltaic (PV) program.

This interim funding for PV installers would remain until new programs are put in place for the Customer Sited Tier of the Renewable Portfolio Standard (RPS), which are currently under consideration.

The association representing the industry also called for the PSC Commissioners to hold a special "Technical Hearing" that specifically focuses on solar electric PV and solar thermal technologies to address long-term funding issues.

These requests are in response to the announcement on Jan. 11 that New York State Energy Research and Development Authority (NYSERDA), which administers RPS funding, has immediately reduced investments for solar electric installations.

With the NYSERDA cutbacks, solar electric installation incentives have been reduced to $1.75 per watt for residential systems. The Commission also has put a cap of 5 KW for any residential application, plus limited the number of applications per installer and eliminated the energy smart loan program for PV.

"While we understand the reasons for the temporary program changes that have resulted from inconsistent long-term state funding, these actions will seriously hurt solar businesses throughout the state," said Ron Kamen, NYSEIA president and a senior vice president for EarthKind Solar.

"New York's solar industry has been growing at 60 percent per year, even through the current recession," he said. "This cutback will critically damage the growing base of small- and medium-sized solar businesses in the state. The state's action will result in job cutbacks and sends the wrong message to the brightest beacon for the emerging new clean energy economy."

NYSEIA has been working with its members as well as environmental allies, regulatory leaders and state representatives to develop a plan to install 2,000 Megawatts (1 MW = 1,000,000 watts) of solar electric, plus another 2,000 MWs of solar heat and hot water systems by 2020.

NYSEIA is proposing that the PSC establish a Megawatt MW goal for PV each year, planned as equal monthly commitments, along with a budget for reaching that goal.

Under the NYSEIA proposal, all applications received each month would be funded at the incentive levels published at the time of application. The amount of funds remaining in the annual tranche would be apportioned over the remaining months of MW goals. Incentive levels would be adjusted monthly so that the remaining funds are evenly allocated to the rest of the time left in the year.

"This self adjusting incentive program ensures that the funds for the year are never exceeded, and would eliminate further surprises and the same stops and starts that have plagued the industry over the least several years," said Kamen. "It would also ensure a smooth transition to lower incentives as determined by the appetite of the consumers, and ensures a pathway to the day that incentives are no longer required."

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 [email protected]
Sandy Frinton (845) 454-3895 [email protected]

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