NEW YORK—Electricity is a policy driven business, and to maintain long-term sustainability, those in the industry must rely on the government for success. New York, New Jersey, and Connecticut all have different state policies in place, each with varying results.
At a recent panel hosted by the Regional Plan Association, experts in the solar energy field from the tri-state area discussed how the current policies were affecting the industry and why having a long-term plan in place is best for long-term success.
“When we look at a market and decide whether to invest in people, and infrastructure and inventory, we want to be sure that that program will be there, not just this year and next year, but for the long haul,” Fred Zalcman, managing director of government affairs at SunEdison said while on the panel last Wednesday.
All of the panelists repeatedly spoke of how difficult it was to have business in a state without long-term policy because it does not create consistent work; a problem they called “start-stops.”
“It is just horrible. It is not good for the companies and it is not good for state job creation,” said Christin Cifaldi, manager of clean energy deployment at Connecticut’s Clean Energy Finance and Investment Authority.
Policy planners from the tri-state region have watching each other and learning from the successes and failures. Here is a snap shot of where each state is on policy and how it is working according to the experts:
New Jersey
649 megawatts installed
In 2010, the New Jersey Legislature created a long-term policy with ambitious yearly megawatt targets, which they have not missed. Consequently, New Jersey is currently second in the nation behind California in solar installed and year over year market growth, according to a policy brief released by the Regional Plan Association.
The rapid growth however, has not come without its problems. “The New Jersey market is almost a victim of its own success,” Zalcman said by phone on Tuesday. Supply now exceeds demand, causing the price of renewable energy credits to bottom out. A few years ago, pricing was close to $600 per megawatt hour and now it is near $100, according to Jim Torpey, director of market development at SunPower Corporation.
Legislation is working its way through the legislature to help stabilize the market and correct the “stop” pattern the current policy has created.
New York
108 megawatts installed
New York does not have a long-term policy in place and the market currently caters to mostly smaller residential projects as opposed to larger commercial ones.
