By TIM FAULKNER/ecoRI.org News staff
Vito Buonomano doesn’t
beat around the bush when talking about renewable energy and our future. His
solar installation business is hurting, the state’s new incentive program for
renewable energy, he said, snubs small projects, and he's concerned little is being
done to address climate change.
“It’s horrifying,” he
said of the predicted effects of sea level rise during a recent meeting held by
the state Office of Energy Resources (OER) for renewable energy developers.
“Why don’t we tell this to our grandchildren? And we’re sitting here arguing
about pennies.”
The pennies he refers
to are the monthly charges on National Grid utility bills that fund renewable
energy programs. Most residential customers pay about 2 cents daily to
subsidize these incentives.
When the state tax
credit for residential and small renewable projects disappeared in 2010, so did
many of the residential and small business customers for Buonomano and other
wind and solar contractors.
EDITOR'S NOTE: before you post a comment saying that green energy shouldn't need to be subsidized, that it should be able to stand on its own, STOP. We HEAVILY subsidize the oil, natural gas, coal and nuclear industries and have done so for years. For green energy to take hold, it deserves a fair chance on an even playing field. Now, go ahead and post your anti-subsidy comment.
Rhode Island's new
distributed generation program was supposed to help the renewable sector by
providing fixed electricity pricing contracts. Predictable pricing, of course,
means predictable revenue. It’s also considered effective for bringing
renewable energy prices closer to fossil fuel-based electricity prices, which
in theory will eventually reduce the reliance on incentives to promote
renewable energy projects.
“The ultimate goal of
distributed generation is to create a clear and streamlined incentive program
that leads to a decline in prices,” said Julian Dash, former head of the
state’s Renewable Energy Fund and principal of Clean Economy Development.
But some small
developers complain that the state's distributed generation program favors
larger wind and solar projects.
Since December 2011,
16 renewable energy projects have been awarded contracts, or fixed pricing, by
National Grid. All but one are big solar arrays, such as the one proposed for
the Quonset industrial office park and another at a closed landfill in East
Providence. Only one is categorized as small scale, which produce less than 500
kilowatts for solar and 1.5 megawatts for wind. The least amount of electricity
a qualifying project can create is 10 kilowatts, which is much larger than a
typical solar or wind project for a home or a small business.
Awarding contracts to
numerous smaller projects creates more local jobs by spreading money across
many companies, according to Buonomano, who runs Northeast Solar and
Wind Power. By contrast, larger projects often hire employees and
firms from out of state, he said.
“Whose interest do we
have here,” he asked. “Do we have National Grid’s best interest or Rhode
Island’s?”
Other small-scale
developers complained that the 1 megawatt of electricity National Grid reserved
for the fixed pricing isn’t enough to divide among small developers.
“It’s not worth it for
us in Rhode Island for 1 megawatt of power," said Middlewtown resident
Scott Milnes of Beaumont
Solar. "It makes more sense to go to Massachusetts."
Stephan Wollenberg of People’s Power &
Light and Mass Energy said a Massachusetts
program has helped grow the Bay State’s small renewable energy sector. “I think
having lots and lots of (smaller) solar projects really raise the awareness for
renewable energy," he said. "And that is a good thing.”
At the Sept. 7
meeting, Chris Kearns of the OER urged patience with the Rhode Island program.
“People need to keep in mind that this is a brand-new program," he said.
His boss, Marion Gold,
the OER’s new director, noted that Gov. Lincoln Chafee must still appoint the
committee to oversee the distributed generation program. National Grid must
also be more forthcoming with information, Gold said.
Buonomano said the
Massachusetts program allows renewable energy projects of all sizes to enroll
in the state's renewable certificate program. In Rhode Island, fees of up to
$4,500 must be paid just to apply. There also are other administrative fees
that Massachusetts doesn’t require.
Both Wollenberg and
Dash, however, believe Rhode Island will eventually offer a tax credit or
rebate to promote the small wind and solar industry. “I would expect to see
something to come this year to stimulate the residential renewable energy
market,” Dash said.
Spreading incentives across numerous smaller
renewable energy projects reduces the risk of high-profile failures and better
creates jobs, Buonomano said. “We have an opportunity to create long-term,
sustainable job growth with these projects," he said.