New Round Of Solar Funds Spurs Development | Mass. still behind New Jersey, California in terms of panel installations
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Arthur Barrett, president of Barrett Distribution Centers in Franklin, says his company's plans to install solar panels would not be possible without a grant from the state's Commonwealth Solar II program.
Arthur Barrett, president of Barrett Distribution Centers in Franklin, first looked into putting solar panels on the roof of his company’s warehouse about four years ago, but the investment just wasn’t worth it.
It is now, thanks in large part to a $161,720 renewable energy rebate Barrett will receive as part of the state’s Commonwealth Solar program, which encourages installation of solar panels across the state.
“The technology has become more efficient and the incentives are there right now so that the payback makes this a good business decision,” Barrett said.
Barrett hopes the panels will be installed this summer and soon he’ll slash his energy bill almost in half.
For the past few years the state has been attempting to encourage solar installations, and it’s been working. But Massachusetts is still behind some other states in terms of solar adoption.
Regulations requiring utility companies to purchase solar energy, however, should keep demand for solar power high and rebates, like the one Barrett will receive, are expected to continue to make solar installations more popular for businesses and residents.
The first big wave of solar incentives was the 2008 Commonwealth Solar program, which had $68 million and a goal of installing 25 megawatts of solar power production by 2012.
The program was originally run through the Westborough-based Massachusetts Renewable Energy Trust. That agency moved to Boston and merged into the Massachusetts Clean Energy Center earlier this year.
The second iteration of the program, Commonwealth Solar II, plans to distribute about $4 million a year for solar installations through tax rebates in the coming years.
The Clean Energy Center has also used stimulus funds to propel solar adoption, including $8 million in one-time funds for projects of 200 killowatts or less.
The center is paying for the programs through a surcharge on each utility bill based on how much power the business or homeowner uses.
Meanwhile, the state legislature has created laws that require privately held utility companies to use annually increasing percentage of renewable energy, a certain chunk of which must be solar. Officials hope that increased demand, combined with the tax rebates, will encourage installations across the state.
The state’s efforts are similar to those other states have used around the country, but still, Massachusetts is behind in solar installations.
California and New Jersey, for example, have had robust programs to encourage solar installations for years, making them the top two states in terms of solar adoption, according to DSIRE, or the Database of State Incentives for Renewable Energy, a North Carolina-based research organization that tracks renewable energy-incentive programs.
Amanda Vanega, a policy analyst for the group, said Massachusetts’ regulations that require a specific amount of the power from utilities to be solar will help fuel demand in the solar market for the coming years.
“Solar is still relatively unknown and new to people,” Venega said. “It does take an investment, but we’re starting to see efficiency programs gain a lot of ground around the country.”
The incentives are attracting installers from all over the state to invest. The first phase of announcements related to the Commonwealth Solar Stimulus program yielded 56 projects receiving $4 million in rebates earlier this month, including a handful in Central Massachusetts, such as the Barrett plans, and Dan’s Jeep Chrysler Dodge in Westborough.
Like Barrett, Dan Tortora has been considering installing solar panels on the roof of his car dealership on Route 9 for a few years.
“It’s a positive thing for the environment and for us economically,” he said. “I’m basically going to guarantee my electric rates at a steady level for 20 years, that’s a great deal.”
Tortora hopes to work with an installer who will own the panels, allowing his two car dealerships to use the power from them. He’s set to receive a $124,000 rebate for the almost 100 kilowatts project once it is installed.
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