New York introduces new value-based distributed energy compensation system
The New York State Public Service Commission (PSC) recently announced a new compensation system for distributed energy resources (DER) based on the value that the resources bring to society and the electric grid.
The PSC also approved an implementation plan for the system that includes a plan to support community solar projects.
“Expanding access to cost-effective, clean energy is a primary goal of New York’s Clean Energy
Standard, which will create enough renewable energy to meet half of the state’s electricity needs by 2030,” Commission Chair John Rhodes said. “The new compensation mechanism will spur the development of solar power, energy storage and other localized forms of electric generation.”
The new Value of Distributed Energy Resources (DER) compensation system will include valuation of locational and environmental benefits and energy storage systems used in combination with a DER.
DER systems installed before March 9, 2017, will continue to use the net energy metering compensation mechanism. Homeowners and small commercial customers that install DERs between March 9, 2017, and Jan. 1, 2020 will remain on net energy metering compensations for 20 years.
All other systems installed after March 9 will use the new VDER compensation mechanism once the utilities file final calculations and tariffs, which will take effect Nov. 1.
