News and Press

May 2007

Solar Power Your Home
Tuesday, May 1st, 2007

The trend of wearing black never seemed to go out of style. Sure, pink became the new black, and even orange had its moment. These days, it seems that “being green” is as popular as black ever was.

Most people want to be thought of as green advocates and they are “thinking green” and thankfully as a result, many others are following their footsteps. Most folks are recycling more, hybrid cars are becoming very fashionable, and many are switching from the traditional incandescent light bulbs to the 77% more efficient compact florescent variety. In fact, it looks as though California will ban the use of the incandescent bulb all together. Considering that all of us here in the USA are responsible for 25% of the world’s greenhouse gas emissions, it is safe to say that reducing our dependence on fossil fuels is crucial.

From Corporate America to Small Town America, everyone is beginning to care, and it’s a very good sign. There is even a solar initiative that provides for one solar installation in a low-income neighborhood for each array installed on the home of a celebrity. Some towns are taking matters into their own hands. Within the next ten years, Woodstock, NY is planning to become entirely carbon neutral. We are moving in the right direction.

Here on Long Island, there are also bright, encouraging signs for the future. The Town of Southampton is the only township in the state to offer its citizens a $2,500 rebate for having a solar electric system installed. That rebate, when combined with the substantial LIPA rebate plus the state and federal tax credits, can cover 55% of the cost of a solar electric installation. Incidentally, the federal government is considering a serious increase of the federal tax credit. This action will make the purchase of a solar electric system even more affordable for a residential application.

Currently, a solar electric system pays for itself in 8 to 11 years. Homeowners who have solar arrays installed are paying for systems with money that they would have been paying LIPA anyway. Most solar panels are under warranty for 25 years and will continue to produce significant power long beyond the span of its warranty. It is clean, green and economical!

The ultimate goal of a residential solar application is to “zero-out” your LIPA bill. If a homeowner has the desire and available space, he or she can have a system installed that will enable them to bring their yearly LIPA bill down to $0. Even if a homeowner chooses only to meet a portion of their power needs with a solar array, the math still works. The system would still pay for itself in 8 to 11 years, their LIPA bill will shrink significantly and the homeowner will shed a considerable portion of their reliance on fossil fuels. As most people know, we do not just power our cars with fossil fuels; most of our electricity is produced by fossil fuels as well.

So, if a solar installation makes so much sense, then how come there are only a total of 800 grid-tied solar arrays on all of Long Island? Grid-tied simply means that solar energy powers your house by day and LIPA powers the home at night. Ideally, the overproduction by day compensates what is being used at night. It is affordable, efficient and easily financed. As solar energy becomes more popular on Long Island, more homes are being designed in ways that can accommodate solar panels arrays.

There are other areas where solar energy makes sense as well. Municipal buildings, schools and not-for-profit organizations have a higher rebate from LIPA. Commercial applications are also attractive. LIPA offers the same rebate to a commercial entity as it does for a homeowner. The good news is that the 30 % federal tax credit of the remaining cost of a solar array after the LIPA rebate has been subtracted from the price. The federal tax credit has no cap for a commercial application and currently a residential application can only receive a maximum $2,000 federal tax credit.

Where do we go from here? There are so many steps that each of us can take toward energy independence. Producing your own electricity and lowering your electrical load go hand in hand. Start by looking at every outlet in the home and see which items are making the meter spin. Phone chargers, DVD players, and sprinkler systems are all using power, even when they are not in use. Also, save power by replacing appliances with Energy Star models. There are even high performance pool pumps that use significantly less power than traditional systems. Have a look at www.lipower.org, where you can find a list of 53 ways to lower your electric bill.

Of course renewable energy does not stop at solar electric systems. Solar hot water, wind power and geothermal systems are also viable options. LIPA is working on a rebate offer for wind turbines. Many towns are also considering revising their code to allow for wind installations.

Being green does not mean that you have to drastically change how you live your life. The commitment to a greener existence can truly help “save the planet,” and actually save you money too.

SunStream USA has world headquarters located in Southampton, NY. They are also planning to open in New Caanan, CT, servicing all of Westchester and Southwestern CT. Visit their website at www.sunstreamusa.com or call 631-283-0057 for more information.

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Southampton Town rebate program slow in catching on
Tuesday, May 1st, 2007

Author: By Jennifer Landes

While regional demand for solar energy has driven down the Long Island Power Authority’s reimbursement rates for home systems, Southampton Town’s $2,500 rebates have been slower to catch on.

Out of the 20 rebates the town allowed for in its capital budget last August, eight have been paid. Seven of those were granted last year and one since the beginning of this year. Charlene Kagel, the town comptroller, said the available rebates would roll over each year until they were exhausted.

Although many involved in the program thought it would be more popular, Town Supervisor Patrick A. Heaney said last month that the town’s rebate plan was initially approved late last year and had not had enough time to catch on before the seasonal decline in demand. Industry representatives said the level of interest in town rebate applications is not a direct indication of the level of sales of solar energy systems in the area, but it does say something about the barriers that still exist to greater demand for the systems.

Gordian Raacke, executive director of Renewable Energy Long Island, said that while regional interest had increased, information about the rebates available and the long-term cost benefits of solar energy may not be reaching local consumers. Renewable Energy is a non-profit group that promotes clean energy solutions on Long Island.

In the meantime, federal, state, and county governments have acted to promote the environmentally friendly systems through their own incentives. Mr. Raacke pointed to a federal residential tax credit of up to $2,000 for residences, and 30 percent on the cost of the systems for businesses—with no cap—which went into effect January 1 and will be in effect through the end of 2008. The state has also acted to increase its maximum tax credit from $3,750 to $5,000. Suffolk County, meanwhile, has waived its sales tax on the purchase of the equipment.

LIPA has been issuing rebates to homeowners installing solar panels since 2003, when it reimbursed customers for their systems at $5 per watt. That amount has decreased over the past few years to $3.75 and should continue to decline as each block of money the company has set aside is used up.

LIPA will reimburse the dealer so that the savings are passed on before the customer has to pay for the system.

These incentives significantly reduce the cost of installing a system. Renewable Energy’s website has a calculator that will estimate the cost of a system for a homeowner based on the monthly household electric bill or annual use.

A 5-kilowatt system, which is about average for this area, will cost about $37,000 installed, but after all of the incentives actually will cost $13,000—without the town rebate included. Renewable Energy projects that such a system, with a 25-year life and “very conservative” estimates of what electricity costs will be over that time period, would save the homeowner close to $32,000.

Even so, Mr. Raacke said there were still several hurdles to cross to have consumers understand the benefits of solar power. “There is a lack of information and a lack of knowledge. People don’t know this technology exists today,” Mr. Raacke said. “They don’t know about the rebates and tax credits available. I suspect in Southampton, the majority interested in installing do not know about the rebates.”

Mr. Raacke said he would also like to see solar energy financing that resembled car financing where the dealer does all of the paperwork and files for the approval.

Yet, he said the number of inquiries he is receiving in his office, through phone calls and the website, leads him to believe the systems are “becoming quite popular.”

John Tortorella, the owner of Sunstream USA, a solar panel dealer and installation company in Southampton, recently confirmed that business has increased substantially since he started the company two years ago. He added that Southampton’s rebates require the homeowner to apply, but the company supplies its clients with packets of the required documents for all rebates and tax credits.

Southampton Building Department officials said that as far as the town’s policy was concerned, dealers could act as agents for homeowners as long as the documents were completed and signed by the homeowners. The town requires two forms to be completed as well as an electrical inspection and a paid invoice. Mr. Tortorella said, given his sales experience, he believes the remaining rebates will be applied for in the next five to six months.

“People are becoming more aware. You’re not only conserving energy, you’re reducing emissions that lead to global warming,” he said. “We have a major energy situation here. Fuel surcharges are going through the roof.”

Once people receive their tax refunds in the spring, Mr. Heaney predicted there would be more interest in home improvements and solar energy as an option. He noted that a seminar the town hosted at the Hampton Bays Community Center on solar energy options drew 40 town homeowners with speakers from LIPA and trade representatives, who answered questions about the available rebates, tax credits, and other incentives.

Mr. Heaney added that Southampton is “still the only town I know of in the state of New York that is offering rebates,” but he preferred that the industry be responsible for promoting the program since they are more knowledgeable about the technology involved.

For more information, visit the Renewable Energy Long Island website at http://www.renewableenergylongisland.org/.

 

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Paul T. Smith Jr., right, and Brian Tymann of Sunstream USA


Brian Tymann of SunStream USA reviews available types of solar panels.