Governor Paterson Announces Passage of Bill to Help Businesses Produce Their Own Renewable Energy
Yesterday, Governor David A. Paterson announced the passage of a three-way bill negotiated with the Legislature to improve net metering, which encourages the development of renewable energy systems. Net metering allows electricity customers with qualified renewable energy systems to sell excess electricity back to their local utility.
"This is another step toward achieving the State's clean energy goals," Governor Paterson said. "As called for in the State Energy Plan, clean energy initiatives will create local job growth, reduce greenhouse gas pollution, and improve public health, the environment, and the State's energy independence. I thank the Legislature, the renewables industry, and utilities for working with me to strengthen the net metering law."
This legislation is the product of a "Net Metering Summit" that was convened by Governor Paterson last fall to facilitate an agreement between renewable energy installers and the State's major utilities. The bill eliminates the peak load limitation on the size of non-residential solar and wind systems that are eligible to participate in the net metering program. Non-residential solar and wind systems will now be allowed up to 25 kilowatts with the interconnection charges capped at $350 and $750 for solar and wind, respectively. For systems above 25 kilowatts, up to the overall cap of 2,000 kilowatts, the customer would be responsible for the actual interconnection charges.
Amendment of the net metering law for non-residential customers was an important recommendation from the State Energy Plan as a means to support the development of in-state energy supplies. The amendment also supports '45 by 15,' the goal set by Governor Paterson for the State to meet 45 percent of its electricity needs by 2015 through increased energy efficiency and renewable energy. The '45 by 15' clean energy goal would reduce the amount of electricity used in 2015 by 15 percent below forecasted levels, while simultaneously meeting 30 percent of the State's remaining electricity needs through renewable resources. Achievement of this goal would create an estimated 50,000 jobs in the State.
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The following statements were provided in support of the net metering legislation:
Assemblyman Kevin Cahill, Chair of the Assembly Energy Committee, said: "Net metering is a shining example of what can be done when the Legislature and the Governor work in a bipartisan manner to produce real solutions for New Yorkers. This amendment opens up further opportunities for all New Yorkers to take advantage of solar and wind power to lower costs and sell their excess clean energy back to their utility, creating one of the most expansive laws in the country."
Senator Darrel J. Aubertine, Ranking Majority Member of the Senate Energy & Telecommunications Committee, said: "This legislation expands the opportunities for businesses, especially our farms, to reduce energy costs and grow our state economy, creating and preserving jobs, especially Upstate. With these amendments to the state's Net Metering laws, we have successfully balanced the needs of farmers, business owners, the power industry and our environment. I want to thank the Governor for his role in pushing for and signing this legislation and his commitment to clean energy."
Carol E. Murphy, Executive Director of the Alliance for Clean Energy New York, said: "Commercial net metering will allow for a significant increase in the number of customer-sited renewable energy installations throughout the state, which in turn has a major impact on our environment and economy. This is a great opportunity to not only expand New York's clean energy market and create green jobs, but also make real progress in reducing our energy costs and carbon footprints. We commend Governor Paterson for his leadership on this issue and working to ensure the successful implementation his clean energy agenda."
Shaun Chapman, East Coast Campaigns Director for Vote Solar, said: "Net metering is the policy backbone of a strong rooftop solar energy market. By putting clean energy to work for New Yorkers, net metering helps put New Yorkers back to work. The program bill that Governor Paterson submitted and the Legislature passed will expand New York's opportunity for energy cost savings, green job creation, economic recovery and environmental benefit. I applaud the Governor for his leadership in advancing a more prosperous, sustainable energy future in our state."
Jeff Irish, President of Hudson Valley Clean Energy, Inc., said: "The Governor's net metering program bill is a big step forward for solar in New York State. Utility tariffs have discouraged many potential commercial, not-for-profit, and municipal customers from investing in solar electric systems. Fixing net metering is critical to making solar financially attractive for small businesses and municipal governments in the state, and growing employment in green jobs. We have numerous installations that will only now go forward because this bill has become law. I'm grateful for the Governor's leadership on this program bill and his support of the emerging solar industry in general, and thank the Legislature for unanimously passing this new law."
Adrienne Esposito, Executive Director of Citizens Campaign for the Environment, said: "Net metering propels us into the 21st century and moves NY forward as our electric meter moves backwards. Congratulations to Governor Paterson and the NYS Legislature for a pro-consumer, pro-business, pro-earth policy."
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