Long Island Power Authority: PV Rebate Program

LIPA offers its customers rebates for grid-connected photovoltaic (PV) systems as part of the Solar Pioneer and Solar Entrepreneur programs. Residential PV systems up to 25 kW and non-residential PV systems up to 2 MW (the limits of LIPA's net metering policy) are eligible for an incentive ranging from $1.30 - $2.00 per watt depending on the customer sector. The program is only available for customer-owned systems; leased systems are not eligible for incentives.

Systems should generally be sized so as not to exceed annual electricity consumption. Rebate amounts will be limited to the amount dictated by a system sized to produce no more than 105% of on-site electricity consumption during the prior 12 months. Rebates are only provided for the first 10 kW on residential systems and the first 50 kW on non-residential systems. LIPA's rebates are designed to reflect the current PV costs. The rebate may not exceed the lesser of 50% of installed system costs for residential and business-owned systems, 65% for municipal and non-profit systems, or the incentive value as determined by the rebate schedule. The installed costs are defined as the PV system cost to the customer minus any government grants or subsidies.

The most recently published rebate levels offered by the program are as follows:

• Residential: $1.75/watt DC for first 10 kW
• Commercial: $1.30/watt DC for first 50 kW
• Gov't, Schools, Nonprofits: $2.00/watt DC for first 50 kW

Schools, not for profit, and government facilities receive higher rebates to help compensate for tax incentives available to residential and commercial customers. For the additional incentive, proof of non profit (501(c)3) or equivalent status is required and tax credits/depreciation cannot be applied for the PV installation. Each municipal subdivision is currently limited to one application of up to 50 kW. All equipment must meet the minimum technical, warranty, and installation requirements established by LIPA. The program has a $100 non-refundable application fee.

History

LIPA launched the Solar Pioneer Program in 2000 as part of the utility's five-year Clean Energy Initiative -- a $32 million commitment to developing clean energy alternatives. In May 2003, LIPA announced that it would extend its Clean Energy Initiative for another five years and increase funding levels by $5 million per year, to an annual investment of $37 million and a total investment of $185 million. Under the Efficiency Long Island Program (which replaces the Clean Energy Initiative) budgets have exceeded this investment level, with total efficiency and renewables budget of $119.3 million for 2012.

In recent years the solar rebate program has been expanded with the addition of rebates for large commercial systems. The large commercial program is called the Solar Entrepreneur program. With the addition of the Solar Entrepreneur program, the overall program budget has increased dramatically, to more than $26 million in 2012. LIPA has reportedly issued rebates for more than 3,300 PV systems over the 10-year life of the program. Past reports indicate an average PV system size of approximately 5.9 kW.