As we’ve reported on this blog before (see here), a solar PV rebate program offered by the New York State Energy Research and Development Authority (NYSERDA) is set to expire at the end of the year. It’s not clear when (or if) fresh funding will be allocated to provide rebates for 2010 and beyond. What is clear is that the December 31 expiration date is having a chilling effect on demand in New York for solar energy systems.

The Syracuse Post-Standard has a short piece on the matter that’s worth a read. Some main takeaways are: (1) demand for solar is still very much reliant on government subsidies; (2) uncertainty over future regulations — which takes the form, in this case, of uncertainty over the next round of funding — can bring activity to a screeching halt; (3) sudden changes in rebate levels or terms can catch installers and interested buyers off guard; and (4) when demand falls, the associated jobs are consequently threatened.

A new round of funding for 2010 and beyond has not yet been approved, and that leaves solar power installers hanging. They can’t sign up customers until they know what the subsidy will be. And without customers, an emerging industry employing between 800 and 1,000 people statewide can’t create more “green-collar” jobs.

“We could easily hire another person if the right incentives were in place,” said Duncan Cooper, director of sales for Renovus Energy Inc. in Ithaca, an installer of renewable energy systems that employs seven. “We just don’t know where we’re going to be in the next few months.”

So what do you tell customers?

“This is the way it is now and we have no way of predicting what it’s going to be like,” said Robert Halstead, owner of Eastern Mountain Solar Corp. in Syracuse. “As you can imagine, we’re not doing a whole lot of sales between now and then.”

If there’s political will for another round of funding, let’s hope NYSERDA can get it sorted sooner rather than later.

RELATED: See this post on the Long Island Power Authority (LIPA) rebate program. While still the program is still operational, LIPA recently announced changes to the structure of the rebate.

UPDATE: In other news related to solar in New York, the state legislature earlier this week passed a bill authorizing municipalities to create Property Assessed Clean Energy (PACE) programs. In a nutshell, these programs will enable homeowners to finance the installation of solar and other types of renewable energy systems with longer-term loans that are repaid via an annual property tax surcharge. To my knowledge, Berkeley, California was the first municipal government to adopt this kind of approach.