Florida Utility Prematurely Yanked a Solar Rebate Program, Trade Group Claims

Categories: Environment

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David.Monniaux via wikimedia commons
It's getting ugly between Florida's solar industry and the state's public utilities. All summer, both camps have been sniping at each other after Florida's power companies blocked solar industry advocates from sitting in on a policy skull session at the Florida Public Service Commission.

Now, the war of words is turning to actions. Solar advocates now claim this month Florida Power & Light yanked funding from a residential solar rebate program prematurely, with no warning or explanation.

For the past four years, FPL has administered rebates paid for by the Florida Energy Efficiency and Conservation Act (FEECA). Under the program, residential homeowners who install solar water-heating systems are eligible for a $1,000 rebate from the state -- essentially a financial cherry atop a pitch for solar.

"It reduced a homeowner's expenditure, saving them money, and making it more accessible for people to have solar hot-water heaters," explains Wendy Parker Barsell, executive director of the Florida Solar Energy Industries Association (FlaSEIA).
Last October, around $1.1 million was placed in an account for the residential rebate. Applicants would have until September 30 of this year to submit rebate requests.

But according to FlaSEIA, on August 7, one of the group's members logged onto FPL's site for the rebate and saw a notice that the program would be ending -- at 5 p.m. that day. According to the website, there was still about $238,000 of rebate money available and $294,000 in an account for a similar program for commercial property. FlaSEIA scrambled to send out a notice to its members to take advantage of the rebates while they still were available. At 5 o'clock, both accounts read zero. Now the site reads, "Applications are no longer being accepted. All reservations have been issued."

Barsell says solar installers knew the funding would dry up -- but in September. The move to shut down the funding blindsided the industry.

"We have not been told. Nobody knew," she says. "[The rebate] is something that really helps sell it. When you don't get the $1,000 to offset the cost, it makes it less attractive for the homeowners. It was going to be gone, yes, but that's still a lot of units that could have been sold."

FPL, however, says that FlaSEIA's account is wrong. Says company spokesman Mark Bubriski: "I don't know how they wouldn't have known" the funding was set to expire. According to Bubriski, all the reservations for rebates made this year will be honored. The association knew the program was going to be done soon. "We haven't gotten any complaints from any contractors," Bubriski says. "Why didn't [FlaSIA] just give us a call?"

The radically different takes on what went down is pretty much indicative of the mood across the state right now, where the bitter feelings between utilities and solar contractors are growing.

"We want solar to advance in Florida," Barsell says. "It just seems like at every corner, we're getting beat up."

Send your story tips to the author, Kyle Swenson. Follow Kyle Swenson on Twitter





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2 comments
ray.boggs
ray.boggs

1. Add up your lease payments and when compared to an outright purchase you'll find that you're easily paying up to 3 times more on a $0 down solar lease versus a purchase.


2. You'll probably pay so much more for a lease than a purchase that's it's actually you who will be over-paying for your own maintenance, monitoring and insurance not the leasing company.


3. You'll probably have trouble selling your home because what home buyer in his right mind will want to assume your lease payments on a used, outdated system when they can buy a brand new system with the latest technology and keep the 30% federal tax credit for thousands less. Don't believe it ? Well then simply type the keywords "solar lease scaring buyers" into Google and you can read many accounts of homeowners and real estate professionals reporting difficulty when trying to sell a home with a 20 year solar lease or PPA attached to it. 


4. After making 20 years worth of leasing payments, you won't even own the system. It will still belong to the leasing company.


5. Check that quote from the solar leasing company and you'll find that most of the time they won't even tell you what brand of equipment they're installing on your home. I wonder why?


6. Most if not all $0 down solar leases include an annual payment escalator that will increase your monthly payment by up to 2.9% per year for 20 years.


7. Remember, the solar leasing/PPA companies are still using Gen 1, boxy looking aluminum framed solar panels that were originally designed back in the 1970s, instead of the latest, Gen 2, Hyper X 2,  one quarter inch thick, Bifacial solar panels. So you'll be stuck with the same aging solar system without the ability to upgrade for the full 20 year term of the contract. If you bought your system instead, you can sell it at any time and take the proceeds from the sale and upgrade to the latest and greatest equipment. You can't do that with a lease because it's not your system to sell.


8. You'll have to forfeit the 30% federal tax credit and any applicable cash rebate to the leasing company and you won't get tax deductible interest on your lease payments. Only a $0 down solar loan or $0 down PACE financing will give you tax deductible interest and let you keep all of your incentives for a much better return on your investment.


45464321128
45464321128

Not true, Mr. Bubriski. As a contractor I did complain via email to the standard rebate email address, and received a response from FPL's administrator. You HAVE received complaints. I know of others who have done so as well.

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