December 24, 2020
The State of New York has set some of the most ambitious climate targets in the United States. As part of the Climate Leadership and Community Protection Act (CLCPA), NY has outlined nation-leading climate targets including:
85% reduction in greenhouse gas emissions by 2050
100% zero-emission electricity by 2040
70% renewable energy by 2030
3,000 MW of energy storage by 2030
6,000 MW of solar by 2025
22 million tons of carbon reduction through energy efficiency & electrification
The state intends to meet these goals by following Governor Cuomo’s comprehensive energy strategy—Reforming the Energy Vision (REV). Under the REV strategy, two key programs have been designed to make both solar power and energy storage more affordable, accessible options for consumers.
The Value of Distributed Energy Resources (VDER) Program
The NY-SUN Program
What is the New York VDER Program?
The Value of Distributed Energy Resources (VDER) Program, or the Value Stack, is a compensation mechanism created to replace its predecessor, net metering. VDER is a more accurate method of compensating those who are generating solar energy, boosting the benefits of going solar for NY consumers. Under VDER, the value of solar energy is calculated through a pricing mechanism called the VDER Value Stack. The following four components make up the Value Stack:
Location-Based Marginal Pricing: This is the wholesale value of energy in the local market.
Installed Capacity: This is the cost of the resources required in order to deliver energy to the utility.
Environmental Benefits: The environmental benefits offered by solar energy.
Demand Reduction Value: This is a lump sum, based upon the generator’s average hourly output, during peak hours in the previous year, multiplied by the DRV rate.
How Does the New York VDER Program Work?
Compensation under the VDER Program is provided to customers via monthly credits. Each month, the utility transfers a credit, equal to the VDER rate multiplied by the number of kilowatt (kW) hours produced by the solar PV system, to the customer. This is a monetary credit applied to the customer’s consolidated bill. The pricing of the VDER Program remains in effect for twenty-five years.
What is the NYSERDA NY-SUN Program?
As noted above, the NY-SUN Program is an affordable solar program set up by the New York State Energy Research and Development Association (NYSERDA) in 2012 as part of the REV strategy. The intention of the program is to make solar PV and energy storage projects more affordable and accessible to both residential and non-residential consumers across New York State.
What Incentives are Available Under the NY-SUN Program?
NY-SUN consists of a number of different incentive programs. The two most notable programs under the NY-SUN umbrella are the NY-SUN MW Block and the NY Storage Adder.
NY-SUN MW Block: Financial incentives to install solar for both residential and non-residential projects. The incentive is available on a first come, first served basis per region/sector, and solar developers must apply on behalf of businesses and residents.
NY Storage Adder: Currently, NYSERDA provides $350 per kWh of energy storage capacity on top of the current NY-Sun solar incentive. In order to receive the Storage Adder you must be working with an NY-SUN approved contractor like YSG Solar.
With the cost of going solar lower than ever before, and the looming danger of incentives disappearing in the near future, there has never been a better time to go solar. If you’re interested in a solar project, it’s better to act sooner rather than later to ensure the biggest savings on your utility bill and the greatest return on your investment. With utility costs trending upwards and incentives like the NY-Sun MW Block running out, now is the time to act.
If you want to install solar for your home or business and take advantage of the incentives outlined above, get in touch with YSG Solar now. YSG has been operating in the New York solar sector for over a decade, so we know the market inside out. To learn more, send us an email or call at 212.389.9215 today.
YSG Solar is a project development vehicle responsible for commoditizing energy infrastructure projects. We work with long-term owners and operators to provide clean energy assets with stable, predictable cash flows. YSG's market focus is distributed generation and utility-scale projects located within North America.
Sources:
https://www.forefrontpower.com/new-york-solar-questions-answered-part-1/
https://www.nyserda.ny.gov/all-programs/programs/ny-sun
Featured Photo by Patrick Tomasso on Unsplash.