Holding to a firm tradition of supporting solar energy within New York, the Public Service Commission has voted to provide $12 million for solar rebates through June of this year. The solar market in the state has been holding its breath since the NYSERDA rebate expired at the end of 2009, with no new incentives on the shelf. The PSC wants to establish a more long-term incentive structure to continue encouraging solar development, but in the meantime, this cash infusion will make it possible for solar homes and businesses to move forward with their projects. The Times Union reported that the industry is treating the news with “cautious optimism”:

“Our position is it’s good that the commission passed an interim plan — it’s better than a stick in the eye,” said Ron Kamen, president of the New York Solar Energy Industry Association. “But the reality is we need to come up with a long-term solution.”

The NYSEIA, which represents solar installers, distributors and manufacturers, says that it wants $50 million in annual solar incentives for installers to offer customers. The state spent $58 million last year as demand spiked for solar electric, also known as photovoltaic or PV. That was up from $22 million in 2008.

Residential solar installations will be eligible for a rebate of $1.75/watt, which is significantly lower than NYSERDA’s closeout levels last year (up to $2.50/watt). Still, for a typical home solar array of 5 kw, that’s almost $9000 cash back–not shabby. NYSERDA’s claim that this new level is competitive with other states, however, demands a closer reading: New Jersey’s rebate ranges from $1.55-1.75/watt, but is coupled with the state’s outstanding SREC purchasing program, which can add a revenue stream of a few thousand dollars per year to an average solar energy system. Massachusetts also has a low rebate per watt that’s coupled with SREC payments at a state-mandated level.

So, New York: don’t let the solar industry down! By the time this summer rolls around, we want to see a sustainable solar energy incentive program in place. The Empire State has a reputation to uphold here.