NY-Sun PV Incentive Program (Commercial and Industrial)

Summary

New York State Energy Research and Development Authority (NYSERDA) through NY-Sun Commercial/Industrial Incentive Program (PON 3082) provides performance-based incentives for installation by contractors of non-residential new grid connected solar photovoltaic (PV) systems that are ranging from 750kW to 7.5MW in the Upstate region. Incentives for residential sites in all regions, nonresidential sites 750 kW or less in Upstate and PEG Long Island regions, and nonresidential sites 7.5MW or less in Con Ed region are offered through the NY- Residential & Nonresidential program. Incentives are awarded on a first-come, first serve basis, and project applications will be accepted through December 31, 2030, or until funds are fully committed, whichever comes first. 

Eligibility

Incentives are provided to new customer-sited PV systems, greater than 750 kW per electric meter, that are grid connected and displace utility provided electricity. Funding for the NY-Sun program has been allocated by the New York State Clean Energy Fund (CEF) and Regional Greenhouse Gas Initiative (RGGI), and the Order Authorizing the Clean Energy Fund Framework, dated January 21, 2016. An Order, dated May 14, 2020, authorizes additional CEF funds to achieve the goal of 6 GW by 2025. A further Order, dated April 14, 2022, authorized additional CEF funds to achieve the expanded goal of 10 GW by 2030.

Program Description

The program offers incentives based on the performance of the PV system as a function of annual energy production. The program also offers additional incentives for projects located on a landfill or brownfield, and Community Distributed Generation (CDG) solar projects that did not qualify for a Market Transition Credit (MTC) under the Value Stack. The Inclusive Community Solar Adder (ICSA) is also available for nonresidential CDG projects serving low-to-moderate income (LMI) subscribers, affordable housing, and other facilities serving disadvantaged communities. For projects with a capacity of 1 MW or greater that submit utility interconnection applications after 4/14/2022, incentives will be conditional on the developer paying prevailing wages for construction activities associated with project design and installation.

MW Blocks

Incentives are based on the Megawatt (MW) Block design that allocates specific incremental MW targets to specific regions of the state. NY-Sun assigns a certain amount of incentives to each of the three regions (ConEd, Long Island, and Upstate region). Each region is then broken into blocks that are designated an allocation of megawatts (MW) eligible for NY-Sun incentives. Incentives remain available until all blocks within a region/sector are fully subscribed. NY-Sun intends to phase out incentives within a reasonable time frame as market conditions become more favorable to solar. The MW block structure is designed to support solar markets in the areas where support is needed most, and decrease incentives as they become less necessary to a self-sustaining solar market throughout New York. Real time incentive amounts for the Upstate MW block can be viewed here. 

Incentive Amount

The base incentive for the project is based on two years of PV System Estimated Annual Energy Production using 13.4% capacity factor (CF) for fixed systems at the incentive associated with the block in which the project application is approved by NYSERDA.

Additional Incentives

As mentioned above, additional incentives are available if installations meet certain criteria. Ground mounted solar electric systems on brownfield or landfills are eligible to receive a $0.15/W incentive in addition to the standard incentive. Projects serving multifamily affordable housing properties will receive a total incentive of $1.00/W for the first 200kW of the project. CDG projects on eligible properties will receive an additional $0.15/W if the property is owned by a public housing authority or nonprofit organization with additional criteria. The ICSA is available for CDG projects serving LMI subscribers, affordable housing, residents of disadvantaged communities (DACs), and select nonprofits and public facilities located within and serving DACs. The current ICSA is $0.10/W. Real time ICSA incentive amounts can be viewed here. 

Contractor Requirements

Incentives are paid directly to the pre-approved contractor and must be applied in full to the cost of the PV system, thereby reducing the out-of-pocket cost to the customer. Interested parties with appropriate credentials can apply through the NY-Sun program website to register as a participating contractor. Participating contractors are responsible for installing the system, and submitting all required PV incentive applications to NYSERDA.