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The math is still being worked out, but about $65 billion in direct funds and tax breaks is being distributed nationally for solar energy projects through the federal stimulus package. It may mean a far brighter economic future for the Hudson Valley and New York state, say entrepreneurs already working at solar industries. And the benefits appear to run from the grass roots entrepreneur to the industrial endeavor.
U.S. Rep. Maurice Hinchey estimates that solar initiatives will receive about $45 billion in direct funding under the economic recover package President Obama signed into law Feb. 17. An additional $20 billion dollars in targeted tax breaks should further spur development. Eighteen months ago, Hinchey helped found The Solar Energy Consortium (TSEC), a group seeking to bring solar industries to the Hudson Valley.
“TSEC is very well positioned to receive a good chunk of investment from the federal stimulus,” said Dan Ahouse, a legislative aide to Hinchey. “TSEC has been doing things to lay groundwork that were not happening anywhere else in the country and it is being recognized.” He said there is “an aggressive timetable” of 6 weeks to get funds disbursed to projects, but said he expected that time frame to slip somewhat given the complexity of the endeavor.
How much funding will end up in the Hudson Valley and New York state is still unknown because the money is being divided through a complex array of funding streams and tax breaks. Some money will go to state agencies, such as NYSERDA, the state”™s energy and research development authority, others will be awarded by the federal government directly to projects that win competitive grants being run by federal agencies connected with energy.
Other funds will go directly to consumers and businesses who install solar equipment.
“This is groundbreaking news for the solar renewable energy market,” said Curtis Karmazin, commercial and government accounts manager for Mercury Solar Systems, whose headquarters is in New Rochelle and who operates so far primarily in Westchester and nearby communities. He said the benefits will be far reaching. “This is something we”™ve been waiting for in the solar market across the country for decades.”
Mercury Solar designs and installs electric and thermal equipment for buildings. Karmazin said the stimulus contains provisions that could allow companies, nonprofits like libraries and municipalities to defray 30 percent of the cost of putting solar energy equipment on their buildings. The customers would be receiving direct repayment for their costs from the federal government stimulus money.
“It”™s an incredible opportunity to install a solar system and really have it pay for itself within a timeframe we”™ve never seen before,” said Karmazin. He said the tax breaks are designed to pay out for projects completed in the next two years and suggested interested solar parties “break ground within the next 12 months to ensure they get the project completed,” in timely fashion to get the federal repayment. He said that part of Mercury”™s service is to fill out the paperwork navigating the bureaucracy on behalf of its customers to ensure they get their federal repayment promptly.
TSEC, based in Kingston, is also seeking to gain funding through winning awards via the federal grant process, said CEO Vincent Cozzolino. He said TSEC, a nonprofit partnership of academia, industry and political officials from this region, “has been preparing for this for two years. We are going to apply for several large projects.”
He refused to detail what the grant applications would consist of, or to identify whether multinationals such as IBM are directly involved with the projects being proposed. Cozzolino is a former IBM executive and noted that Big Blue is one of TSEC”™s industrial partners, but said he couldn”™t comment beyond that.
Cozzolino said the grant applications would seek amounts for projects ranging in cost from $10 million to $200 million. “Unfortunately I can”™t tell you what they are,” he said.
but noted that once the grant applications are sent to the federal government in coming weeks they will be public information.
He said if the proposals are successful at winning funding, “Each one of them would be job-creating renewable solar energy jobs that would come to New York.” Cozzolino said that if the projects all receive funding it could result in “Between hundreds and thousands of jobs. It”™s really an opportunity for us to take the lead in solar energy projects.”
A separate pool of money would go to state energy agencies and NYSERDA for solar projects originated by state officials but here, too, exact amounts and how the funds would be disbursed are still not finalized.
Cozzolino said TSEC is not waiting for the state to act, but is going directly to the federal government. “We”™ll let them (state officials) know what we”™re looking for; if there is any opportunity to partner, well take it,” said Cozzolino.“But the big pot of money is with the federal government, and we”™re going right to the federal government for our funding.”
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