LIPA Expands Solar Programs

January 6, 2009

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Creates New Solar Entrepreneur Program to Help Small Businesses Reduce Energy Costs

(Uniondale, N.Y.) Despite the economic hardships wrought by a global financial crisis, the Long Island Power Authority (LIPA) has reaffirmed its commitment to energy efficiency and renewable energy through the adoption of its 2009 operating budget.

Funding for LIPA’s renewable programs was increased 75% from $8 million in incentives under its Solar Pioneer program in 2008 to $14.4 million in 2009. This increased investment represents $13.2 million for expansion of the incentives provided for the residential Solar Pioneer program and the creation of a new “Solar Entrepreneur” program for businesses and municipal solar installations with capacities of up to 100kw.

Since 2000, LIPA has rebated over $36 million on the installation of photovoltaic or “PV” systems. Since its inception, LIPA’s Solar Pioneer program has transformed a market that saw the number of Long-Island-based solar contractors grow to more than 30 companies and encouraged the installation of PV systems on nearly 1,700 rooftops making Long Island the state leader in PV installations.

This month LIPA became the first utility in the state to implement commercial net metering through new tariff provisions that will allow commercial customers to sell excess power generated back to LIPA.

“Despite the terrible economy I believe it is critical for LIPA to continue to invest in renewable power,” said Kevin S. Law, President and CEO of LIPA.

“Under Kevin Law’s leadership, LIPA has undertaken a much needed expansion of solar power on Long Island,” said Gordian Raacke, Executive Director of the not-for-profit organization Renewable Energy Long Island. “LIPA’s 2009 solar budget offers incentives to more home and business owners than ever before which should result in a growing number of solar installations this year.”

LIPA was recently named among the top ten utilities in the United States with the most solar electricity integrated into its energy mix by the Washington, D.C.-based Solar Electric Power Association (SEPA). The first annual rankings were based on information provided to SEPA through a survey of utilities and independent research.

“Utilities across the U.S. are embracing the fact that solar electricity is an important part of a balanced and smart energy portfolio, and LIPA is one of the forerunners,” said Julia Hamm, SEPA’s Executive Director. “Under the leadership of Kevin Law, in the past year LIPA has drastically increased its commitment to adding photovoltaic systems both on the utility and customer side of the meter. Other electric utilities around the nation, whether investor owned or publicly owned, should be watching LIPA for examples of how to efficiently and effectively increase the amount of solar electricity on the grid.”

Last year LIPA issued a Request for Proposals for 50 Megawatts of solar energy to be generated on Long Island, which could be installed at school buildings, on commercial and municipal rooftops, along parking lots, atop landfills, and at Brownfield sites. The 50MW would be the single largest block of solar energy in New York State. The RFP drew a robust response from the private sector with more than 30 firms sending in proposals. The complex responses are still being analyzed and a recommendation of award is expected early in 2009.

“We applaud the effort and leadership of LIPA to continue supporting the development of solar energy here on Long Island,” said Kevin MacLeod, Chairman of the Long Island Solar Energy Industries Association (LISEIA). “We live on an island and must commit to do everything in our power to avoid polluting our air and waterways. For our children’s sake, we need to make every effort to reduce our contribution to global warming, and we only need to remember last summer’s oil prices to understand how those with interests of their own can affect our economy. Whether it’s due to speculators or foreign interests, we must reduce our dependence on foreign oil if we ever want to have control of our own destiny.”

Energy Efficiency

LIPA is also kicking off Efficiency Long Island this month and kept funding levels for energy efficiency programs on par with 2008 levels, despite the clarion call from some to eliminate efficiency spending all together. Efficiency Long Island is a 10-year, $924 million program to offer residential and business customers an array of programs to help reduce their energy usage resulting in savings on future bills and achieving significant environmental benefits.

Efficiency Long Island is expected to reduce peak electric demand by 500 Megawatts (MW) by 2018. Such a reduction will result in the deferral or elimination of the equivalent of one large or two medium-sized power plants from LIPA’s capacity expansion plan and avoid high-cost, on-peak energy production equivalent to saving 2.2 million barrels of oil.

LIPA has deemed the Efficiency Long Island program the most cost-effective resource option currently available. It is estimated that implementation of Efficiency Long Island will reduce CO2 emissions by about 12 million metric tons compared to the CO2 emissions that would be produced from new power plants burning natural gas. This is equivalent to removing 2.5 million cars from Long Island roads.

LIPA, a non-profit municipal electric provider, owns the retail electric Transmission and Distribution System on Long Island and provides electric service to more than 1.1 million customers in Nassau and Suffolk counties and the Rockaway Peninsula in Queens. LIPA is the 2nd largest municipal electric utility in the nation in terms of electric revenues, 3rd largest in terms of customers served and the 7th largest in terms of electricity delivered. In 2006, LIPA outperformed all other overhead electric utilities in New York State in all three major reliability categories. LIPA does not provide natural gas service or own any on-island generating assets. More information about LIPA can be found online at: http://www.lipower.org