Sun Power: Solar Surges Thanks To Rate Hikes, Incentives

It sounds almost too good to be true—harnessing the power of the sun to run the electricity in your home with no money down, getting a tax rebate or even a deduction that can roll over from year to year, and credit back from PSEG Long Island rather than a bill. But is it really all that and a bag of Sun Chips?

According to residents and the companies that sell or lease solar panels for homes, it is. The combination of a three-year rate hike from PSEG Long Island coupled with new programs and existing incentives may make this the best time to go solar, according to several East End residents.

In the Town of Southampton alone, permits for solar panels rose from 80 in 2013, to 112 in 2014, to 221 last year. Across Long Island, there were more commercial and residential solar installations in 2015 than in the previous eight years combined. “It was my best year yet,” said John Rocchetta, a partner in Green Logic, a renewable energy design and installation firm with offices in Southampton, Manorville and other locations on the island.

“From 2012 to 2015, New York saw an increase of 575 percent in the number of solar systems installed as well as an increase in development, which has also generated a significant increase in the number of solar-related jobs across the state,” said Kristina Pappas of PSEG LI.

According to a national report released in February, New York’s solar industry is now the fourth largest in the nation and employs more than 8,250 workers, an increase of more than 3,000 jobs since 2013. In 2016, double-digit job growth is expected to continue with another 1,000 additional jobs created as a result of the state’s robust solar project pipeline.

Besides the desire to switch to a cleaner renewable energy source, Mr. Rocchetta pointed to the many benefits residents can receive from regional, state and federal incentives that have led more people to seek solar. A system normally ranges from about $30,000 to $50,000 for a large home, with more than 50 percent of that being picked up by the various incentive and rebate programs, and the rest often financed by the New York State Energy Research and Development Authority.

Although a 30-percent federal Investment Tax Credit—originally set to expire in December—has been extended to 2019, another available credit from PSEG based on volume of systems is almost maxed out. That credit, called the statewide NY-Sun Incentive Program, allots “megawatt blocks” for residential systems, with 122 megawatt blocks allocated for Long Island as a whole. The first block on Long Island, which began in January 2014, offered a 50-cent incentive per watt, while the latest block, which is the fourth and final one, offers only 20 cents. In addition, the number of watts left in the pool for Suffolk County is shrinking rapidly—“There’s only about 10,000 kilowatts left,” Mr. Rocchetta said.

On the other hand, the New York State 25-percent tax credit, with a maximum of $5,000 per system, has no expiration date. And as solar systems become more popular on the East End, new programs are becoming available.

“I’ve been very active in trying to get PACE adopted by Southampton,” said Water Mill resident Steve Abramson, referring to the Property Assessed Clean Energy program, which would allow residents to amortize a loan for their system into their property taxes over 20 years, transferring the obligation should the owner choose to sell.

“The funding mechanism is going to make solar easier and more affordable,” Mr. Abramson said. State Assemblyman Fred W. Thiele Jr. introduced the bill in 2008, he said, “but it’s taken until now to get Suffolk County on board.” Last November, the Suffolk County Legislature unanimously sponsored the county to be added to the state’s Energy Improvement Corporation, legislation sponsored by then deputy presiding officer Jay Schneiderman. Mr. Abramson expects PACE, which will affect commercial properties and homes in corporate names as early as April, to be available to homeowners by early 2017.

Bob and Liz Pucci of East Hampton had their system installed about eight years ago—in between the energy-conscious movement of the 1960s and ‘70s and the recent solar boom.

“I had always considered renewable energy since my college days,” Mr. Pucci said. “It was always in the back of my mind.” When a friend, a local cub scout leader, started “raving” to them about his solar panels, the Puccis bought their own. “Leasing wasn’t as prevalent yet,” said Mr. Pucci. “LIPA paid about half, and with the tax credits about 60 percent of the cost of the system was covered.”

How does the system operate? “It’s pretty carefree,” Mr. Pucci said. “It supplies all of our energy needs, with the exception of the dead of winter or running air-conditioning on high, which we try not to do anyway.”

Mr. Abramson believes that seeing more systems installed on the South Fork will, with luck, create even more of a boom. “It’s not an imperative,” he said, “but awareness is created when you see that other people are doing it in your neighborhood.”

The rise in solar power is attributed to word of mouth more than any other factor, Mr. Rocchetta said. “People see it on their neighbors’ house, and they get curious,” he said. But, he cautioned, every house is different. “A lot of people think that because my neighbor did it, I should do it. But it really is custom for every household. You need to see how it fits for you.” Green Logic’s Brian Dorgan agreed. “It’s application-specific,” he said. “Two homes right next to each other might have completely different needs, due to shade trees or the way the house faces.”

Another factor heading the solar surge is the introduction of nationwide solar installation companies on the island, companies like SolarCity, which offer leasing options for solar arrays, often with no money down. Mr. Rocchetta, whose company does not lease systems, offered that this option may be best for senior homeowners. “It allows the company to take advantage of the tax credits,” he said. “It’s a win-win.”

Mr. Abramson, who is “of a certain age,” purchased his system through Long Island Power Solutions, an Islandia-based company, almost a year ago. “I’ve always been predisposed to it,” he said. He attended four conferences on renewable energy because of his long-standing interest.

“I’m not typical,” he said. “I was going to wait for PACE to kick in, but then I thought, ‘What am I waiting for?’”