Category: World Wide: News

Are Solar Rebate Funds Running Out?

Author: Tina Metcalf

A recent New York Times article points out that Connecticut’s solar rebate funds are running dry. As it happens, the program has been so successful, that there are no more funds to go around. According to the article, since 2005 more than $8.5 million has been given out for 815 residential solar projects and 127 business and government projects.  A whopping 300 percent growth spike in the purchase of residential systems in the latter half of 2008 essentially drained all the available funding.

We can find echoes of this sticky situation in Florida and in New Jersey.  During the second half of 2008 over 3,000 Floridians applied for solar rebates from the state; while 1,300 have been approved, the remaining 1,700 are still waiting in the wings.  The problem is, there is no money left.  Again, we see the same thing happening in New Jersey, where a surfeit of applications has outpaced the rebate money by far.

This is somewhat of a false dilemma as it signals something more profound than legislative quagmires.  What’s truly of standout quality here is that Americans are more than ready for solar. We no longer want to be a nation of oil guzzlers.  Applying for solar rebates is just one of the first steps in weaning ourselves from oil, which can get pretty pricey on more than one level.

Now the obvious drawback of course, is the cost. Rebates are effective, but limited.  State support can only go so far. But, let’s take a step back.  At the moment, solar energy panels are indeed expensive, hence the rebates.  Nevertheless, the predictions look quite rosy.  We may see a price drop of as much as 43% on the cost of solar silicon—the stuff used to make solar panels—by the end of the year.  In the next five years, we could see even more cuts, with silicon prices falling by as much as 67%.  In particularly sunny regions, the cost of solar energy will be on par with electricity, making going solar very affordable.  So, although government incentives lag, the future of solar looks sunny.

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