A plan for NYC solar power by 2022

The Center for Sustainable Energy has set a goal - the establishment of 500 solar roofs in New York City within the next four years. CSE, founded in 2003 at Bronx Community College, is part of CUNY's Million Solar Roofs Initiative.

On a peak summer day, New York City consumes approximately 11,000 megawatts (one megawatt can power 1,000 homes). The energy needs of New York ranks somewhere between Switzerland and Portugal. And New York's consumption is growing. Eighty percent of New York City's power is produced in the five boroughs while the rest comes from the Indian Point nuclear plant in Westchester and power plants found in surrounding states.

Most power plants in the city are run on natural gas - a non-renewable resource. But a solar roof only employs photovoltaic (PV) panels to convert sunlight into electricity. CSE's study, "New York City's Solar Energy Future," claims that the amount of solar energy that falls on the city each year is two times the amount the city requires. They estimate that photovoltaic systems on rooftops and building facades could provide 18 percent of the city's power needs by 2022.

The report looks at the complex interplay of federal and state agencies, regulations, tax codes and Con Edison requirements, which can stymie CSE's goals. Many policies make the installation of PV systems less than cost-effective. For example, New York State Tax Credit for solar roof systems is only available to residential taxpayers, while the vast majority of available rooftops are on commercial and municipal spaces. Tax credits are also considered income by the federal government and are thus taxable items. In addition, the state tax regulations say that any grant money received for the PV system reduces its depreciable basis.

Getting a PV system connected to the grid in New York State is an expensive, time consuming and bureaucratic process. It involves not only the State's Standard Interconnection Requirements, as well as Con Ed's requirements - Con Ed often mandates PV systems to incorporate expensive reverse power relays that prevent the possible back-feeding of power, even though the risk is small.

Local Law 86 requires that city agency construction and renovations of over $2 million be designed, according to the U.S. Green Building Council's Leadership in Energy and Efficiency Design rating system. LEED assigns points based on the specific green practices a building employs. The sum of the points determines whether the building will be rated certified, silver, gold or platinum.

While it is widely credited with promoting sustainable energy practices, LEED does not reward points optimally. Supplying 2.5 percent of the building's electricity from an onsite renewable source earns one credit, but so does installing a bicycle rack for employees. The study states that of the 388 LEED projects certified in the U.S. by June 2006, only 4.6 percent were silver or certified projects that also had onsite renewable energy systems.

In addition, government policies that support green technology are not sufficient to sustain market growth. A primary cause is the lack of funds for PV systems in public buildings. One of the many reasons is that city agencies do not control their own energy budgets. All of the City's energy bills are paid centrally, through the City's Office of Management and Budget. OMB's process for the development of PV systems is filled with red tape and the agencies do not directly profit from PV projects.

The cost of installing a PV system is rising due to global silicon shortages. But New York City's cost is higher than the rest of the state. Labor costs, special equipment like cranes for high-rise urban buildings and more complex wiring all contribute to increased costs.

But even with these drawbacks, the study concludes that, once the silicon shortage is over, solar energy has the potential to be the cheapest source of energy in the next two decades.

The study refers to Baruch College's eTownPanel survey, which claims that over 80 percent of New Yorkers would pay an additional $1 to $5 a month for more wind and solar energy. The study advocates imposing a green power surcharge to fund green energy. They also recommend the development of a "solar stock exchange" similar to programs in Zurich, Lausanne and Copenhagen where green power sellers are matched to buyers.

The study also advocates programs currently in use in Japan and Germany. Japan provides upfront rebates and Germany offers performance-based incentives. Both programs help reduce costs and promote growth.

Tria Case, executive director of CSE and co-author of the study, said, "Much of what needs to happen to unlock New York City's solar potential has to happen at the state level."

She credited Governor Elliot Spitzer's efforts while he was State Attorney General; his administration successfully sued several utilities in other states and the proceeds funded various solar projects. CSE has just provided the study to the governor's office and is hopeful that they will continue to have sustained support.