New York affiliate of the National Wildlife Federation
PRESS RELEASE
February 5, 2008
NEW YORK'S NET METERING POLICY RECEIVES "D" GRADE IN NATIONAL CLEAN ENERGY REPORT CARD
Expanding Net Metering Policy Benefits Business, Protects Environment
(ALBANY,
NY) – New York State’s net metering policy, the
practice that credits consumers for the clean power they
generate, received a failing grade of “D” on a report card
released today by the Network for New Energy Choices and
dozens of environmental groups and clean energy businesses
and associations. New York currently has one of the most
restrictive net metering policies in the Northeast.
Neighboring states fared far better: Pennsylvania and New
Jersey received “A”s and Connecticut scored a “B.” New
York’s scorecard is available at
www.newenergychoices.org.
New York’s net metering policy, the practice often referred
to as “spinning the meter backward,” restricts the size of
eligible energy systems. The state is also one of only two
in the nation (out of the 40+ that are currently home to net
metering policies) that doesn’t allow commercial and
industrial customers to receive credit for the excess power
they generate back to utility companies. In New York,
current state law limits overall system capacity at 10 kW
(kilowatts) for solar and 25 kW for residential wind, sizes
too small to give businesses—with loads up to 10,000
kW—incentives to invest in their own potentially profitable
clean energy systems.
The state can improve its net metering policy by increasing
eligible system size to at least 2,000 kW (2MW), open up net
metering to all customers—residential, agricultural and
business, expand net excess generation for wind, and
increase the overall limit on net metering enrollment.
“Solar technology is here. The public demands energy from
clean power sources and the solar energy industry is ready
to supply it. All that is needed to bring clean power safely
to market is good public policy. Good public policy starts
with sensible net metering and interconnections
standards. This will allow customers to receive credit when
they generate clean solar power,” Tom Thompson, President,
New York State Solar Energy Industries Association (NYSEIA).
“Broad-based support from both
businesses and organizations urging New York State to
strengthen our net metering policy is encouraging,” said
Kyle Rabin, director of the Network for New Energy
Choices. “Net metering can play a key role in protecting the
environment, creating ‘green’ jobs, and accelerating clean
energy development, all of which will be good
for our economy. This year, State senators, working with
the Governor and members of the Assembly, have the
opportunity right now to make New York a national leader in
this crucial component to clean energy policy.”
“In order to get a high speed clean energy
economy moving in New York, like it is in New Jersey, we
need a full package of complementary policies to motivate
the marketplace. If financial incentives are the engines
that drive markets, net metering and interconnection are the
paved roads to make sure our clean energy transition is a
smooth ride, ” Shaun Chapman, East Coast Campaign Director,
the Vote Solar Initiative.
“Current policy in New York makes it difficult for many small business owners to justify the cost of investing in clean and environmentally beneficial energy generation equipment like solar panels,” said Gordian Raacke, executive director of the not-for-profit Renewable Energy Long Island. “Instead of putting up unnecessary hurdles we should be encouraging businesses to invest in clean and renewable energy sources because such investments benefit all of us.”
“New York needs to update our net-metering laws. The good news is that state lawmakers know this, too. And if state legislators improve our net metering policy early in the upcoming legislative session, it would improve New York's grade,” David Gahl, Policy Director, Environmental Advocates of New York. “While an improved net-metering policy might not get New York on the honor role this year, the state might have a better chance at getting a date with clean, renewable energy.”
“New York State's net metering program needs significant reform in order to achieve the necessary reductions in climate-altering carbon emissions and to maximize job creation associated with manufacturing and installing clean energy systems like solar power and small wind generation,” said Jeff Jones, Coordinator, NY State Apollo Alliance.
“Clean, renewable energy production translates into improved air quality across New York State. Adopting modern interconnection and net metering policies will give New Yorkers an incentive to invest in renewable energy generation which will help us all to breathe a little easier," said Michael Seilback, Senior Director of Public Policy & Advocacy, American Lung Association of New York State.
“Net metering is about fairness, it's about economic development, and it's about the promotion of clean energy. If a consumer produces more electricity than they are using, they should be able to receive a credit on their utility bill for the power they purchase from the grid. It's common sense and it should be broadened to include small and large businesses throughout New York State. In a state that has the second highest energy costs in the nation, such a policy is profoundly important, not only for those consumers that elect to use on-site wind turbines or solar panels, but also for all New Yorkers, who will benefit from increased renewable energy production statewide and the public health, environmental and energy security benefits it provides,” said Carol E. Murphy, Executive Director, Alliance for Clean Energy – New York.
States’ grades were included in last year’s Freeing the Grid report, but detailed information was not made available until today. The report includes state-by-state scoring and grading for net metering and interconnection standards, analysis from leading national experts, most up-to-date data that are representative of existing state net-metering policies. The full report is accessible at www.newenergychoices.org.
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