LIPA rebate aids solar project at North Fork winery

Even as its budget for solar-system rebates runs dry, the Long Island Power Authority Wednesday kicked in a third of the cost for a solar array at a North Fork winery, the largest ground-mounted system on Long Island.

Peconic Bay Winery in Cutchogue has been producing energy from the nearly 40 kilowatt system for about a week now - just in time for the energy-intensive grape harvest season.

"It's cranking," said Jim Silver, the winery's general manager, standing beside one of two long arrays set in the ground between the winery's barns and vineyards. The winery uses more energy during the harvest season to run grape-crushing machines and wine-cooling vats. The system will supply 70 to 80 percent of the winery's energy, saving owners about $9,000 a year.

The system, which was installed by GreenLogic Energy of Southampton, cost $300,000; the LIPA rebate amounted to just over $97,830. Federal tax credits and other incentives further reduced the cost.

The solar array came online as LIPA last week quietly reduced the amount it pays to subsidize home and business solar systems, to $1.75 per watt, from a previous $2. LIPA's annual budget for the popular rebate program is nearly depleted, and could run out before the end of September, officials said. Peconic Bay Winery applied for the rebate last year, and received funding at higher levels, Silver said.

LIPA and lawmakers such as Assemb. Marc Alessi (D-Wading River) and Legis. Edward Romaine (R-Center Moriches) said Wednesday they are appealing to state and federal officials for funding to keep the program running.

LIPA chief executive Kevin Law said he requested an increase in next year's annual solar budget. The $21 million 2010 budget already includes a $6 million boost from the state. But Law noted the rebates were intended to help spur an industry that must eventually stand on its own, helped more by lower costs and increased federal and state tax incentives. The rebate program will likely end by 2015.

Solar installers say a gradual wind down is fine, but running out of money before year's end will have serious implications.

"If we don't see some funding from the state, we will have to begin layoffs," Marc Cléjan, chief executive of GreenLogic. GreenLogic this week ranked 185 on Inc. Magazine's list of the 500 fastest-growing companies.

"We don't want to depend on subsidies any longer than we need to," Cléjan added. But for now, "Our growth is directly linked to how much money gets put in the [LIPA] program."