With Good Reason, Solar Installations On The Rise In Gardiner/New Paltz Area
By Fred Mayo
From Issue 24: Fall 2014
With the increasing number of solar energy companies practicing in the Gardiner and New Paltz areas and a dramatic increase in homeowners installing solar systems on their homes, it is important to understand what the issues are and why homeowners are installing these systems now.
Reasons range from the obvious desire to save money, to wanting to produce clean energy and save the planet; solar is a small but significant way to make life better for the next generation. Solar offers a chance to reduce reliance on the electricity grid and sometimes even sell power to electricity companies. It also offers protection against the volatile costs of commercially available electricity since solar energy typically offers a lower, fixed rate compared to the rising costs from conventional energy.
Some people just think solar energy is the right thing to do and are glad that the technology, state incentives and a range of companies have made it widely available. According to most professionals in the field, the dominant reason involves saving money and energy.
The current growth of solar installations is also due to several government incentives. The New York State Energy Research and Development Authority (NYSERDA) provides cash grants to homeowners who decide to install solar systems since the department is charged with advancing “innovative energy solutions in ways that improve New York’s economy and environment.” Its vision is to transform New York’s economy and empower people to choose clean and efficient energy as part of their everyday lives.
Besides the cash grant provided by NYSERDA, the federal government provides a 30% tax credit and the state government a 25% tax credit—capped at $5,000—for installing a solar system. With similar incentives in other states, 42,000 systems were installed in the last quarter of 2014, and one of the fastest growing areas of installation (north of Consolidated Edison territory) is the Gardiner-New Paltz area.
At present there are three ways to acquire solar energy panels: lease; loan to purchase; and outright purchase. Under a lease agreement a homeowner arranges with a solar company to install the company’s system on the person’s roof or yard. The solar company owns and maintains the equipment and provides the householder with electricity at an established rate that is part of the contract written in advance. In a loan to purchase situation, the homeowner hires the solar company to install the system and borrows money from the solar company using either a monthly payment plan or a portion of the savings from having solar energy to pay off the loan. When the loan is paid off, the homeowner owns the system free and clear. In the purchase model, the homeowner arranges with a solar company to have a system installed and pays for it. The homeowner owns the system and maintains it (or can sign a maintenance agreement with the company, similar to a service contract with an oil or furnace company).
Another reason that solar installations are moving forward at a fast rate is the ease of obtaining permits. In New Paltz and Gardiner, the permitting process used to be more difficult and require a careful review and approval. Currently, the application is a short form and the approval is almost automatic.
The rate that homeowners pay for solar energy can vary widely depending on the type of installation, the exposure of the solar cells to the direct rays of the sun (how much shade), the tilt of the system, and its size. Each situation is different; however, homeowners with solar pay less than the regular rate for electricity, and they have a fixed rate per kilowatt hour whereas the rates charged by Central Hudson and other providers are likely to increase over the foreseeable future.
Solar energy is a growing source of energy in this area and something worth looking into for every homeowner. Although it may not be for everyone, improved technology and financing systems are designed to encourage more people to use it and contribute their part to keeping the planet green.