Gov. Deval Patrick on Wednesday called for a dramatic boost in Massachusetts solar energy production while directing his aides to find ways to temper the hefty subsidies being paid by electric ratepayers to support the industry.

At a rooftop event in South Boston, with solar arrays as his backdrop, Patrick said the state has already achieved its goal of 250 megawatts of installed solar capacity four years earlier than expected. He said he is setting a new target of 1,600 megawatts of installed solar capacity by 2020.

 

 Energy Secretary Rick Sullivan addresses a rooftop press conference in South Boston with, from left, Jonathan Wienslaw, president of Broadway Electrical; Brian Swett, Boston’s chief of energy and environment; and at right, Gov. Deval Patrick.

The governor also said he is directing his aides to review state energy regulations to find ways to provide more stable financing for solar developers while reducing the subsidies paid by electric ratepayers.

The subsidies have been the key to the state’s rapid solar expansion.  As CommonWealth reported  in January, electric ratepayers across much of the state have been paying a tiny bit more on their bills so solar developers can turn a profit and their customers can cut their power bills, sometimes in half. Each solar deal is different, but CommonWealth estimated a typical deal would generate revenue of at least 41 cents per kilowatt hour of electricity, which is twice as much as the initial contracted price of the proposed Cape Wind offshore wind project and six times the current market rate.

Patrick said when he came into office there was only 3 megawatts of installed solar capacity across the state. The state’s subsidies, along with generous federal financial aid, helped grow the industry quickly. More than 100 megawatts of solar production capacity was added last year alone in Massachusetts, allowing the state to reach its 250-megawatt target this year.

State officials said the 250 megawatts of solar capacity is enough to power 37,000 homes for a year and offset the greenhouse gas emissions of 26,000 cars for a year. (The environmental impact would be even greater if the electricity output of solar panels was greater; state officials say the actual power output is typically only 14 percent of the installed capacity.) Patrick also boasted that the state has the second-lowest installment cost for solar in the nation and the fourth-highest number of solar jobs.

“Strategic investment works,” Patrick said. “We can choose growth.”

Sen. Benjamin Downing of Pittsfield, who also attended the press conference, praised the governor’s leadership and the state’s solar initiatives. “We don’t have to choose between doing the right thing for the environment and doing the right thing for the economy,” he said.

Still, business groups grumble that the solar subsidies end up driving up the electric bills of residential and business customers and make the state less competitive with states where energy costs are less. Patrick administration officials, however, say the extra costs have been minimal and the economic and environmental payback has been enormous.

Dwayne Breger, the head of renewable and alternative energy development for the Massachusetts Division of Energy Resources, said the rapid rollout of solar projects in Massachusetts and elsewhere around the world is helping to drive down the price of solar equipment, making the technology more price competitive. He said his regulatory goal going forward is to maintain financial incentives for solar developers but calibrate those incentives to minimize the cost to ratepayers.