NY Sun Incentive Program
Bob Boerner
Manager, Renewable Programs
LONG
ISLAND
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NY-Sun Incentive Program
Agenda
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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.
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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’
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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
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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).
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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.
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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.
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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
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NY-Sun Incentive Program
On Bill Recovery
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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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