LIPA Feed-in-Tariff Generates Massive Response

The Long Island Power Authority’s (LIPA) Clean Solar Initiative Feed-In-Tariff (FIT) was formally launched on July 16^th, 2012. Given our experience with other Solar Feed-in-Tariff programs in Vermont, Rhode Island, and Florida (Gainesville), the PowerFlex team expected that there would be a lot of interest in the FIT Program – and the massive response did not disappoint…Although LIPA’s FIT program is still in the early stages (and the data below is preliminary), it is clear that the demand for large-scale commercial solar projects on Long Island is tremendous. The table below depicts the number of applications received by LIPA in the first 13 business days of the FIT program, and the data shows that response to the FIT was huge, particularly in the Large Category (projects over 500kW). We think this is a positive – albeit early – indication of success for Governor Cuomo’s New York Sun Initiative (http://ny-sun.ny.gov/ ), of which the LIPA FIT is a central element.As we discussed in a prior blog post, this FIT program is a real game-changer for the large-scale commercial solar market on Long Island. Building owners can now lease their unused roof areas to solar project developers, thereby generating revenues from previously under-utilized assets. The owners of solar systems (which can also be the owner of the building itself) can generate highly attractive ROI with predictable long-term cash flow streams. If you have a facility with a useable roof area in excess of 50,000 square feet, or useable land areas in excess of 2 acres, this new LIPA solar Feed-in-Tariff can provide a compelling financial proposition.If you are a business or real estate owner on Long Island and are interested in learning more about the program, please contact PowerFlex today.