The Long Island Power Authority (LIPA) has restructured its solar financial incentive programs in response to what it says is the declining cost of installations. Beginning July 31, LIPA has lowered its rebate from $1.19 to $0.99 per AC watt for the installation of a residential customer-owned or leased solar system.
In addition, LIPA has lifted its $75,000 contractor cap on the value of solar systems allowed per company that had been in effect in July.
While LIPA says its solar programs continue to flourish, the declining cost of installation, the continued growth of solar contractors on Long Island, the ever-increasing demand for solar systems and continued federal, state and local tax incentives have prompted the non-profit utility to adjust its rebate structure to work within its budget while continuing to provide support for the solar sector. In July, LIPA announced plans for a 100 MW feed-in tariff program.
‘LIPA is encouraged that it has continued to attract high numbers of customers interested in solar energy," says LIPA Chief Operating Officer John McMahon in a statement." The growing interest and availability in the marketplace for solar installations, together with the availability of other local, state and federal tax incentives, make it reasonable for LIPA to adjust its incentive structure.’
LIPA says the restructured rebate will remain in effect until market conditions dictate the need for it to modify the rebate again.