The Long Island Power Authority has announced another round of cuts for its Solar Pioneer Program, which provides a rebate for home solar energy systems.  This marks the fifth time the subsidy has been cut this year.

Close to 1,100 homeowners have drawn on the LIPA solar subsidy this year.The rebate is currently at its lowest level since the program began.  The new rebate level stands at $1.75 per watt, a $.25 cent reduction from its previous level, and down from $3.50 at the end of 2009.

According to LIPA, the decreased subsidy is due to declining installation costs of home solar energy systems, what it calls "unprecedented demand" for such systems, and government incentives that enable LIPA to alter its Solar Pioneer rebate structure "to keep it in line with the ever changing solar market."

LIPA maintains that the cuts indicate that the program is working. So far, close to 1,100 homeowners have drawn from the subsidy this year, nearly tapping out LIPA's $21 million solar budget.

However, the subsidy cuts mean that home solar consumers must now either reduce their systems' operating costs or pay the difference, according to Newsday. The subsidy cutbacks also increase the time it takes for solar systems to recoup installation costs and pay for themselves.