By: Matthew K. Norris, Contributing Writer to MyEnergySolution

When people think of the best states for solar power, California is often the first state to come to mind as it has strong financial incentives for solar power but also possesses an abundance of sunshine that makes solar power seem logical. However, many state governments on the east coast of the U.S. are having success promoting solar power and are seeing quality installation rates (see chart below). The following is just a summary of the financial support receivied in three states: Connecticut, Massachusetts, and Pennsylvania.

In Connecticut, the Connecticut Clean Energy Fund just recently re-opened its commercial solar photovoltaic program with a $3 million grant (with an additional $8.9 million request in state money) from the American Reinvestment and Recovery Act to help Connecticut commercial facilities install solar panels. Re-opening the Clean Energy Fund is certainly a cause of celebration, however, a larger grant to Connecticut would have had a bigger impact on the future prospects of solar power in the state. One thing to bear in mind is that the Clean Energy Fund was initially funded with $77 million but had to shut down because those funds were used up supporting installation of residential and commercial solar systems throughout the state...clearly a success. So while funding remains tight, the state government and the public have the shown the willingness to push for and utilize increased funding to support the state solar industry. Good thing too as participation in the Clean Energy Fund rebate program can reduce the cost of Connecticut solar panels by approximately half and has lowered the cost of solar panels for homes in the state to about $8.50 per watt, with an average system size of 4.3 kilowatts. Despite a tougher funding environment, Connecticut has still seen very respectably growth in grid connected solar installations, approximately 16% from 2008 to 2009, and the state still remains an excellent market commercial and residential solar energy because it has the second highest electricity rates in the U.S. making solar power financially attractive.

Massachusetts has seen stunning growth in the installation of solar panels across the state. The Massachusetts Clean Energy Center initially created its solar rebate program, Commonwealth Solar, in 2001 and by 2009 over $65 million in state funds had been allocated to support and finance residential and small commercial solar systems. And in 2010, Commonwealth Solar II was created to provide an additional financial rebates and incentives to residential and commercial consumers who want to buy solar. All in all, Massachusetts has dedicated over $160 million of renewable energy and federal funds to support investment in solar energy totaling almost $330 million. And, according to the Clean Energy Center, the state-wide support of solar has really paid off with the number of installed commercial and residential solar energy systems growing dramatically. Massachusetts solar has seen year-over-year growth of  grid connected PV installations of approximately 171% and as of mid-2010, more than 2,200 systems were installed with an additional 400 systems coming online by the end of the year, providing more than 45 MW of solar power, which is enough to power almost 7,000 homes.

The story has also been very similar in Pennsylvania. According to Pennsylvania’s Department of Environmental Protection, Pennsylvania’s solar capacity has increased by approximately 350% over the last year, pumping approximately $1.4 billion into the state economy. Pennsylvania boasts a strong rebate program that refunds up to 35% for residential solar panels and commercial solar panels…this is in addition to the 30% federal income tax credit making commercial and residential solar energy very cost-effective for state residents. In addition to the state rebate programs, solar panel costs in Pennsylvania are declining with the average per-watt cost of going solar falling from $9 in 2008 to $6 in 2009. And in September, Pennsylvania governor, Ed Rendell, announced that the Pennsylvania Energy Development Authority was providing an additional $20.5 million in grants for solar energy and other renewable energy projects around the state.  In addition to all of this state funding, Pennsylvania has enjoyed more than $200 million in private investment helping to spur innovation and raise installation rates around the state. As you can see, Connecticut, Massachusetts, and Pennsylvania are three more states in the U.S. where solar power has blossomed to become an attractive and affordable way to lower your energy bill and produce your own energy.

Despite these success stories, there are many potential consumers that are still wary about installing solar...whether its concern over how to finance a solar project, how to find a reliable solar installer, or what to expect throughout the installation process, consumers have lots of questions that keeps them out of the market. For these interested consumers – homeowners and commercial business owners – that are unsure about solar power and how they should go about evaluating whether solar is right for their situation, please know that there are answers to your problems and all you need to do is a little research at great sites like the U.S. Department of Energy, Solar Energy Industries Association, and MyEnergySolution.com. Remember, solar power is potentially a large investment, so it’s advisable to look into both the technical and financial considerations before either getting the wrong solar panel system or dismissing the chance to save with solar.

Matthew Knox Norris is currently a Finance and Project Manager with Spindrift Partners, Inc., focusing on the bidding, development and management of U.S. government-leased properties. Prior to this, he was a member of the Executive Finance Development Program at Thermo Fisher Scientific where he was responsible for developing strategies to improve customer profitability and operational performance for the Fisher Healthcare business unit. Mr. Norris has an MBA from The University of Texas at Austin and a B.A. in Economics from Claremont McKenna College.