January 9, 2020
Net metering (NEM) has been hugely successful in the development of the solar industry in New York City, and the growth of solar generally throughout the state of New York. In fact, according to NYSERDA, there are now over 120,000 net metered solar projects installed throughout the state of New York.
However, as you might have heard or read over the past year or so, the state of New York is planning on gradually making the transition to a different, more sophisticated method of compensating for photovoltaic generation. This comes as part of a wider plan—Reforming The Energy Vision (REV)—and we’ve covered VDER on the YSG Solar website a few times in the past:
Back in 2017, on March 9 to be precise, a VDER Transition Order was issued by the city. This order heralded the beginning of the end for net metering in the state of New York. The VDER Order stated that net metering for mass market PV customers (residential, small, and non-demand commercial projects) would only be available until 1/1/2020, before being replaced by other, more finely-tuned processes for the compensation of PV generated energy. This date has, of course, now passed and we are over a week into January 2020.
Potential tariff designs for the future have been discussed and explored at length by the New York Department of Public Service Staff, through a Rate Design Working Group. This process of determining potential tariff designs has also seen input from industry stakeholders. Last month, on 12/9/2019, the DPS released the Staff Whitepaper on Rate Design for Mass Marketing Successor Tariff. The whitepaper, available here, seeks public comment, with solar PV developers and contractors in particular encouraged to offer their comment with regards to any future tariff design.
Furthermore, the DPS has extended Phase One Net Metering until 1/1/2021. This extension applies to mass market projects, as well as on-site projects which are under 750kW. Those projects which are completed by January 1, 2021, will lock in net metering for 20 years. So, as things stand, net metering in New York isn’t done and dusted just yet.
If you’re interested in learning more about net metering, VDER, or just the New York solar industry in general, reach out to YSG Solar today—call us at 212.389.9215 or send us an email.
By Shane Croghan
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