NJ's Solar Success-Not OH

[irishbobcat]

New Jersey’s Solar Success-Why not Ohio?

July 1, 2008

Last week in the New York Times, Anthony DePalma wrote about New Jersey’s booming solar power success.
With oil prices skyrocketing, demand for solar power is booming. And New Jersey, which has used a rebate program to help install more solar panels than any other state but California, is getting burned by its own success.

There is a backlog of more than 700 applications for the rebates, and property owners have to wait months, even years, to get solar panels installed. The program, which is paid for by surcharges on all utility bills, has been shut down several times over the last three years because applications far outpaced rebate money. Some solar installation companies have had to lay off workers while they waited for rebate checks to be sent.

All this has convinced New Jersey regulators that it is time to wean solar energy from public subsidies altogether. The state plans to replace rebates with energy credits that can be bought and sold on the open market.

As it works out the details of the transition, New Jersey â€" not the place most people associate with solar innovations â€" finds itself at the forefront of a growing national debate about the role of government in helping stimulate this sector of the energy economy.

Under a state energy master plan, solar power should account for 2.12 percent of New Jersey’s electricity by 2020. But even though more than 3,100 residential and commercial solar systems have been installed during the six years the state has offered rebates; they generate only 0.07 percent of current energy needs.

The state is planning to turn to a program it started several years ago that issues energy credits. The concept is simple: Solar projects generate energy credits every year, and the state requires utility companies to buy them to offset carbon emissions from their power plants and to help meet renewable-energy targets. By purchasing credits, the utilities do not actually generate solar power, but they offset the cost of installing and operating solar equipment.

New Jersey plans to greatly expand the program by allowing the credits to be bought and sold like commodities, with long-term contracts and prices set by the open market.

Regulators say that will be fairer to ratepayers and help the state reach its renewable-energy goals faster. They also say the plan provides safeguards for small installers and ensures competition by prohibiting any company from capturing more than 20 percent of a utility’s yearly credits.

SunEdison, based in Maryland, has already made inroads in New Jersey using a new approach â€" called power purchase agreements â€" that smaller companies do not have the capital to duplicate.

Under those agreements, which the state first allowed in 2004, property owners do not have to buy or operate their solar projects, or handle the sale of energy credits. Instead, they avoid all up-front costs by contracting with SunEdison or other large companies, and bill property owners at fixed rates that are lower than utility company rates.

SunEdison has put up more than 22 solar systems in New Jersey, along with dozens in others states, mostly for large retail companies like Kohl’s.

Experts say these purchase agreements can promote the move to solar power. And regulators hope that a vibrant market for energy credits will speed that growth to the point where solar power can compete with conventionally generated electricity.
Again, we see another state moving ahead of Ohio in providing renewable energy jobs and savings to the poor, working, and middle class.

As the Green Party Candidate for State Representative, I would work to bring Ohio and the 60th district the same type of renewable energy choices other Americans are being offered today.

Dennis Spisak- Campaign web site: Http://votespisak.tripod.com