With ambitious initiatives such as its Solar Stimulus Program and a target of installing 250 megawatts’ worth of solar-generating capacity in the state by 2017, Massachusetts has shown itself to be a vanguard in the U.S. push for solar, and the latest news to emerge from the Commonwealth further bolsters this reputation: having tapped out its $68 million state solar fund in around half the amount of time it was allotted for, the Deval Patrick Administration is in the process of assembling a new program that officials hope will match the generosity of its predecessor, Commonwealth Solar.
“There’s a lot of folks that would just like more rebates,’’ said Philip Giudice, head of the Massachusetts Department of Energy Resources. “This is really about finding ways to make this work by using public dollars as preciously as we possibly can.’’
The new solar plan, which officials hope to have ready by January 1, has a lot to live up to. The $68 million intended for Commonwealth Solar was supposed to last three to four years, and was instead used up by October 2009, a mere 22 months after the program’s inauguration. Homeowners wishing to harness the sun’s energy received rebates that averaged over $13,000, which were funded by surcharges utilities and electricity customers pay to the state. As the average cost of a residential rooftop solar system in Massachusetts hovers in the $33,500 range, the subsidy is a boon, a deal-maker or –breaker.
“The project is really not doable for the typical homeowner without the rebate,’’ said Joel Frisch, who is planning to install a 4.8-kilowatt system at his Clinton home, funded in part with a $15,120 rebate approved by state officials last week.
Commercial solar projects, too, have been able to benefit greatly from the rebate. As these large systems can cost hundreds of thousands of dollars, state support can determine whether or not a project will even get off the ground. Thanks to Commonwealth Solar, many have—by early October, the initiative had funded 208 commercial solar projects, the equivalent of 10.3 megawatts’ worth of generating power, with each project receiving on average a rebate of $138,455. Although the state is still processing some applications, The Boston Globe reports that the first solar program will have subsidized approximately 1,200 solar projects in total, which, when complete, will be able to generate up to 29 megawatts of energy, exceeding expectations.
Details on the new program may be available as early as next week, as state officials wrap up four months of hearings and meetings with solar installers, environmental activists, utility companies, and others about the terms. Among the last matters to be decided is how much utilities will be required to help finance the subsidies.
Although it will be riding on—and hopefully bolstering—the wave of the enthusiasm generated by its predecessor, however, the new solar plan won’t be identical to Commonwealth Solar.
The next state solar program will differ from the first in one important way: It will include a credit-based system, in which utilities will be required to buy electricity credits from residents and businesses with solar panels. The price of credits will help determine the subsidy. Massachusetts officials also expect to provide a traditional rebate for homeowners, to be financed by surcharges that electric customers already pay to a state renewable energy fund.
Apparently, the recent decision of Evergreen Solar—the erstwhile source of Massachusetts’ state solar pride—to outsource hasn’t dampened the Bay State’s determination to go solar. Stay strong, Massachusetts.
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