Governor Supports Clean Energy for New York

Governor Supports Clean Energy for New York

Shaun Chapman

Governor Supports Clean Energy for New York: Renewables an Important Part of State of the State Address

NEW YORK, NY - The Network for New Energy Choices (NNEC) is delighted about Governor Eliot Spitzer’s support of clean energy technologies and policies in his State of the State speech. Specifically, NNEC is pleased with his mention of net metering. The Governor spoke encouragingly about New Yorker’s ability to run their meters backwards with clean technologies, like solar and wind. Net metering is the billing arrangement by which customers realize savings from their renewable energy systems, where 1-kWh (kilowatt-hour) generated by the customer has the exact same value (in cents/kWh) as 1-kWh consumed by the customer.

“Energy policy, with its direct impact on the economy and the environment, is one of the key issues facing New York State and we commend Governor Spitzer’s initiatives and comments”, says NNEC Director Kyle Rabin. “In addition to the obvious benefits for the environment, a strong net metering policy will also aid in the development of New York’s clean energy industry which in turn can help to reinvigorate the state’s economy, in particular revitalizing the upstate economy.”

“New York’s leaders have a real opportunity to transform what is one of the country’s most restrictive net metering programs into one of the nation’s strongest”, says Rabin. “If the state fails to make the necessary changes to its net metering policy, then New York is essentially telling the renewable energy industry, with its great potential for job creation, that the state is closed for business. Neighboring states, like Pennsylvania and New Jersey, have very strong net metering programs. In fact, New Jersey continues to look for ways to improve its program. We’d hate to see New York get left behind.”

There are several ways in which New York can improve. NNEC’s Freeing the Grid 2007 report, a coalition piece, lays out the best practices embodied within some state net metering programs. The report also grades net metering programs across the nation. The most notable ways in which New York can improve its net metering program:

Increase system size to at least 2-MW (megawatts): System sizes should be expanded to meet customer needs. Large commercial operations have loads that can run in the tens of megawatts. A good net metering program should allow these customers to have a 2 to 3-MW clean energy system.

Open up net metering to ALL customer classes: NY’s net metering program currently is limited to residential and agricultural, meaning businesses can not benefit from this important energy cost hedge. Indiana and New York are the only two states, out of 40, with net metering programs this restrictive.

“As Freeing the Grid 2007 points out, without exception, significant deployment of clean, customer-sited, renewable energy only occurs in states with modern net metering policies”, comments James Rose, Policy Analyst for NNEC. He goes on to add, “Because of neighborhood NIMBY-ism, it is a struggle to settle disputes about power plant and transmission line siting. Net metering is a way to get people to say, ‘YES! In my back yard!’”

While NNEC understands the importance of support in this critical speech, NNEC recognizes that speech without action is simply rhetoric. NNEC applauds the Governor’s administration for doing the important daily work to improve New York’s clean energy future and looks forward to working with leaders in 2008 to make essential changes to New York’s net metering law to help reinvigorate our economy, and bring more clean power to New Yorkers.