Why does LIPA offer net-metering and a rebate program?
It does seem that LIPA would lose revenue by incentivizing alternative energy through a rebate program. The Solar Pioneer Rebate Program started in 2002 at ($6 per watt) as a direct result of peak power shortages in the summer. LIPA pays other utility companies premium rates to meet their high electric demands. For now, it is in their best interest to reduce the demands on their power. Required by law, net-metering allows customers to feed electricity back to the grid, crediting your account at the same rate that you pay (up to 105% of your calculated annual usage).
