Dec 19 – McClatchy-Tribune Regional News – Larry Rulison Albany Times Union, N.Y.

The solar industry in New York state has averted the end of an important government subsidiary program that was set to expire at the end of the year.

The program, which pays $2.50 per watt on the electrical output of a solar electric system, has been key to supporting the state’s growing solar market.

For instance, the subsidy can knock off $10,000 on the $28,000 cost of a typical 4-kilowatt home system.  

But the program was to expire Dec. 31 unless the state Public Service Commission acted to extend benefits.

The PSC, which met last Wednesday, did not act on the program and instead will consider it sometime early next year.

“Funding… will be discussed and reviewed at an upcoming session,” said PSC spokesman James Denn.

In the meantime, the New York State Energy Research and Development Authority, which oversees the incentive program, has decided to keep accepting applications under the program through June 30 as the PSC makes its decision.

“As options are being considered, there is still money flowing,” said NYSERDA spokesman Jeffrey Gordon.

The $2.50 per-watt incentive is available through the first 4 kilowatts of installed capacity. The subsidy drops to $1.50 per watt for 4 to 8 kilowatts. There are also state and federal tax breaks and a state low-interest loan program that can also significantly drop the cost of a residential system.

The solar industry has been asking the PSC to increase the amount of funding for the program. The industry benefits from the incentives because the money drives down the cost of the systems, especially solar installation firms that employ construction and electrical workers.

“We’re hopeful that the PSC will raise the level of funding available,” said John Siciliani, executive director of the New York Solar Energy Industries Association. “There’s a significant workforce that’s been put in place.”

New York spent $22 million on the incentives in 2008 and $58 million is expected to have been spent by the end of this year.

The PSC staff has run two scenarios in which the level could be set at $24 million a year over the next five years or as high as $50 million a year.

The NYSEIA believes that number has to be higher to prevent the solar industry from contracting in the state.

“The time is now for the PSC to take bod and visionary steps to ensure this industry not only survives, but expands,” NYSEIA President Ron Kamen said in a statement.

Larry Rulison can be reached at 454-5504 or by e-mail at lrulison@timesunion.com.