Long Island Power Authority - Wind Energy Rebate Program

Summary

Note: The program web site listed above is for the residential wind energy program; however, LIPA also offers incentives for non-residential wind energy installations.

The Long Island Power Authority (LIPA) offers rebates to its residential and commercial electric customers -- including non-profits, schools, and governments -- for the installation of grid-connected wind energy systems. It is part of the broader LIPA Efficiency Long Island Program, which also offers residential and commercial incentives for energy efficiency improvements and solar energy systems. In order to qualify for an incentive, the electric customer must own the wind energy system; leased systems are not eligible for incentives.

Rebate amounts are generally based on expected annual energy production in kilowatt-hours (kWh). System size is limited to that needed to provide no more than 105% of customer energy demand during the prior 12 months. System size is also limited by the applicable, residential, farm service or non-residential limits of LIPA's net metering tariff. Thus maximum possible system size is 500 kW for a farm-service customer, 2 MW for a non-residential customer, and 25 kW for a residential customer. Non-residential applications are only eligible for pre-approval of up to 100 kW of generating capacity or expected production of 175,200 kWh (commercial) or 101,333 kWh (non-profits, schools, and governments) per 12-month period. Multiple applications may be accepted to the extent that they do not exceed these limits. Rebate amounts will be calculated as the lesser of 60% of the installed system costs or the amount resulting from the following formulas:

• Residential: $3.50 per annual kWh up to a maximum of 16,000 kWh.
• Commercial: $3.50 per annual kWh up to 16,000 kWh and $0.50 per annual kWh for energy production between 16,000 kWh and 175,200 kWh.
• Gov't, Schools, Nonprofits: $4.50 per annual kWh up to 16,000 kWh and $1.50 per annual kWh for energy production between 16,000 kWh and 101,333 kWh.

As described above, the incentive for governments, schools, and non-profits is essentially the commercial incentive with an added $1.00 kWh bonus. All systems must come from LIPA's list of eligible wind energy systems and be installed in accordance with the applicable local, state, and national codes and standards, including the state of New York's standard interconnection requirements. All projects must be pre-approved by LIPA in order to qualify for a rebate, which will be paid in two phases. The first phase pays 65% of the total rebate upon system installation while the second phase pays the remaining 35% one year after installation based on annual performance and output.

The 2013 budget for the small wind rebate program is $817,000. LIPA has furnished a customer checklist on the program web site to help guide consumers and installers through the rebate process. Prospective applicants should consult this checklist prior to making any project decisions.