NY Sun Incentive Program

NY Sun Incentive Program Bob Boerner Manager, Renewable Programs LONG ISLAND LONG ISLAND 1 NY-Sun Incentive Program Agenda • • • • • • • Solar PV...
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NY Sun Incentive Program Bob Boerner Manager, Renewable Programs

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NY-Sun Incentive Program Agenda • • • • • • •

Solar PV Technology NY-Sun Incentive Program Net Metering Costs/ROI Purchase/Lease Financing GJGNY Next Steps

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NY-Sun Incentive Program How Solar Electric Systems Work A solar electric system converts sunlight into electricity using solar cells. Solar cells contain special materials called semiconductors (usually made of silicon). Panels of solar cells are mounted on your roof and convert particles of light energy, known as photons, into direct current (DC) electricity. An inverter changes DC power into alternating current, which we know as AC.

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NY-Sun Incentive Program How Solar Electric Systems Work

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NY-Sun Incentive Program System Optimization Orientation - for best performance, a south-facing area Shading - free from surrounding trees and structures

Tilt – array tilt (roof pitch) is optimal at 30 degrees TSRF (Total Solar Resource Fraction) - the incentive for a project will be reduced in proportion to output losses when losses from factors such as shading and orientation exceed 20% of ideal kWh output. LONG ISLAND

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NY-Sun Incentive Program Statewide NY-Sun Incentive Program To support the continued success of the solar industry on Long Island, and to support the industry’s transition from the Long Island Power Authority to PSEG Long Island, NYSERDA will more than double the proposed allocation for the Long Island region from $28 million to $60 million, increase the maximum size of the PV system eligible for incentives up to 200 kW, and will partner with PSEG Long Island to locally implement the statewide NY-Sun program.

Press Release, April 24, 2014: ‘GOVERNOR CUOMO ANNOUNCES HISTORIC COMMITMENT TO SOLAR POWER’ LONG ISLAND

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NY-Sun Incentive Program NY-Sun Incentive Program NY-Sun Incentive Program offers incentives to help reduce the installation costs associated with solar electric systems up to 25 kilowatt (kW) for residential customers, and up to 200 kW for nonresidential applications (larger multi-unit buildings, schools, not-for-profit, and government) in most of New York State— available to residential and non-residential customers.

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NY-Sun Incentive Program How is LIPA/PSEG Long Island involved in NY-Sun? NYSERDA is the statewide administrator of the NY-Sun Incentive Program, and PSEG Long Island is the local administrator on Long Island. PSEG Long Island was involved in the MW Block system design process, it reviews and approves applications received by NYSERDA for LIPA customers and it works with installers on Long Island to approve projects, verify installations and inform NYSERDA when the projects are ready for payment. NYSERDA will perform these tasks for the other two regions of the State.

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NY-Sun Incentive Program Who Can Participate New York State residents and businesses, including nonresidential applications such as larger multi-unit buildings, schools, not-forprofits, and governmental buildings

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NY-Sun Incentive Program Megawatt Block Incentive Structure The structure allocates Megawatt (MW) Blocks to specific regions of the State, breaks those regional MW targets into blocks to which incentives are assigned, and awards incentives based upon the block in effect at the time. The block structure provides allocations based on historical demand, market penetration, installed cost per watt, and equity on a regional basis. The MW Block approach provides the solar PV industry and their customers with certainty and transparency regarding incentive levels to the industry and accounts for regional market differences

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NY-Sun Incentive Program The MW Block Dashboard The Megawatt (MW) Block Dashboard provides real time information on the status of block and current incentive levels by sector and region. Block status is updated as applications are submitted, so click the refresh button to see the current status. http://www.nyserda.ny.gov/pv-dashboard

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NY-Sun Incentive Program Megawatt Block Incentive Structure Long Island Residential

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Block

MW

Incentive/Watt Up-to 25kW

1

37

$0.50

2

15

$0.40

3

20

$0.30

4

50

$0.20

Total

122

Closed

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NY-Sun Incentive Program Megawatt Block Incentive Structure Long Island Nonresidential Incentive/Watt 50 kW up to 200kW total

Block

MW

Incentive/Watt Up-to 50kW

1

7

$0.50

$0.50

2

6

$0.45

$0.43

3

7

$0.40

$0.36

4

9

$0.35

$0.30

5

15

$0.25

$0.23

6

14

$0.15

$0.15

Total

58

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Closed

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NY-Sun Incentive Program How To Participate Customers choose a Participating Contractor to perform the installation and who will: • Inspect site location to determine the best system size and placement options,

• Assist with paperwork for applying to the NY-Sun Incentive Program, including financing options, • Perform the installation and submit all paperwork to NYSERDA.

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NY-Sun Incentive Program Participating Contractors Participating Contractors have demonstrated that they fulfill the minimum requirements for participation the PV Program and have a fully executed Participation Agreement with NYSERDA, in which the Participating Contractor agrees to abide by the NY-Sun Incentive Program terms and conditions. Incentives are paid directly to the Participating contractor

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NY-Sun Incentive Program Participating Contractors are listed on NYSERDA’s website:

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http://ny-sun.ny.gov/Get-Solar/Find-A-Solar-Electric-Installer.aspx

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NY-Sun Incentive Program Application Process Each New Application for Incentives must include a completed and accurate copy of each of the following: Project Application Form Site Map (Site Plan) Photos One or Three-Line Drawing System Output and System Loss Analysis (PSEG LI Production Calculator) • Utility Bill for Non-Residential Applicants Only • Permits • Environmental Assessment (systems over 4000 S.F. in size) • • • • •

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NY-Sun Incentive Program Payment Process To receive the full incentive payment, the installer must submit an Incentive Request Form which will include a utility interconnect letter and one of the following: • Final inspection certificate issued by authorities having jurisdiction • Digital photo of inspection sticker issued by authorities having jurisdiction • Documentation of a successful inspection by NYSERDA or its representatives. In most cases, the utility interconnection letter is the C.O.D. letter which is issued by Power Asset Management. Leasing/PPA installers will not turn on the system until after they receive the C.O.D. letter.

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NY-Sun Incentive Program Net Metering • Most New Yorkers choose a grid-connected system. Gridconnected systems are tied to the local utility, which means that you can tap into the grid for electricity whenever you need it. • One of the big bonuses of a grid-tied system is called net metering, which can earn credits with your utility company and generate savings on future energy bills.

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NY-Sun Incentive Program Return on Investment • The return on investment on a solar electric installation is estimated to be less than 10 years on average, but depends on the rate you pay for electricity. • Where electricity rates are high, the payback is faster, and where electricity rates are low, the payback can be much longer. Bear in mind that if energy prices increase, your solar electric system will save you even more. • Consult your accountant or a financial adviser to explore all of your options.

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NY-Sun Incentive Program Estimated Pay Back Calculation System Size(Watts)

Cost

Rebate

6,500

$24,375

$2,600

Cost/Watt $3.75 Cost After Rebate State Tax Credit (25%) Federal Tax Credit (30%) Net Installed Cost

$21,775 $5,000 $6,533 $10,243

Energy Savings (kWh) Average Retail Rate Estimated Bill Savings

8,275* $0.196 $1,621

Simple Pay Back (Yrs)

6.32

* Favorable Design Factor LONG ISLAND

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NY-Sun Incentive Program PV System Costs • The final cost of installing a solar electric system will depend on many factors, including the size of the system, the type of solar electric panels and other equipment, and whether you want to own, lease, or purchase the power produced by the system (power purchase agreement or PPA). • You should first consider whether you wish to purchase, lease or enter into a PPA.

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NY-Sun Incentive Program Buy a PV System If you own your home and plan to live there for a while, consider buying a new PV system to generate part or all of your electricity needs for years to come.

Lease a PV System

As an alternative to the up front costs of a new solar system for your home, consider leasing through a Lease Agreement or Power Purchase Agreement (PPA). LONG ISLAND

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NY-Sun Incentive Program Power Purchase Agreements • With a power purchase agreement (PPA), a solar installer owns, pays for installation, and maintains a solar electric system at a home, business, not-for-profit facility, school, or municipal building and enters into a contract with the utility customer to sell the electricity generated by the system to the utility customer at a price that is lower than the utility price for electricity. • Contracts are for a specified period, which is usually 20 years. The third-party owner is eligible for certain tax credits and depreciation allowances and can use incentives to lower the cost of the contract. LONG ISLAND

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NY-Sun Incentive Program Leases • Many solar companies offer leases, which means essentially renting the system with the benefit of all the power it produces. • Typically, with a solar lease, you will pay monthly with little to no money down at the start of your contract. • The company assumes responsibility for all system maintenance. Note that maintenance of a solar electric system today is typically negligible as solar panels are highly durable and come with lengthy warranties. LONG ISLAND

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NY-Sun Incentive Program Solar PV Green Jobs Green New York Financing

On Bill Recovery/Smart Energy Loans NYSERDA provides financial incentives for qualified utility rate payers who install/purchase a solar electric system through a NYSERDA participating contractor

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NY-Sun Incentive Program GJGNY Financing • Residential Customers For residential customers, loans are available for up to $13,000, or up to $25,000 with higher costeffectiveness standards, with repayment periods of 5, 10, or 15 years.

• Small Business and Not-For-Profit Organizations For small business and not-for-profit organizations, Participation Loans of up to $100,000 at below the market interest at 2.5% interest are available, with repayment periods of up to 10 years.

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NY-Sun Incentive Program On-Bill Recovery and Smart Energy Loans – Residential Only • On Bill Recovery (OBR) Loan provides the convenience of paying solar PV installations on your utility bill. Loan repayments will appear as a loan installment line item charge on your electric utility bill

• Smart Energy Loan (SEL) offers affordable interest rates and simple repayment options. Repaid monthly directly to NYSERDA’s loan servicer

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NY-Sun Incentive Program Process for OBR & SEL 1. Customer applies to EFS for Loan Preapproval

2. Contractor submits to [email protected]: EFS Loan Preapproval Letter & ProForma (Excel version) 3. NY-Sun Incentive Award Letter issued via email 4. EFS issues Loan Approval Letter to customer and contractor/installer and Loan Documents to customer for signature 5. Contractor will complete and submit to PSEG-LI Rebate Processing the Closeout Documents and Loan Approval Letter 6. EFS will issue Payment to PV contractor LONG ISLAND

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NY-Sun Incentive Program On Bill Recovery • • • • •

Convenient – no separate bill to pay Repay from the money you save on energy Low 3,49 interest rate Transferable if you sell your property Your annual loan payment is calculated to not exceed the anticipated amount of money you save on energy costs

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Thank you

Questions?

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