New York

Updates in New York include a long-awaited PSC order on negative revenue adjustments for utility performance and NYSERDA’s updated NY-Sun plan, which illustrates the new incentive framework for upstate community solar projects. The legislative session also ended in June and while the ASAP Act did not pass, it garnered significant support and is well-positioned for next session. The PSC order on utility penalties introduces two of the six proposed metrics for holding utilities accountable on billing and crediting: timely issuing of CDG credits on customer bills and timely responses to CDG allocation lists. Unfortunately, the PSC also slipped in an increase in the net crediting free from 1% to 1.5% without providing sufficient rationale – an industry petition was filed to push back. In NY-Sun, NYSERDA will be opening the first 400 MW Solar Energy Equity Framework (SEEF) upstate block, which includes a fixed 12 cent per watt incentive for both ICSA and SSFA projects; ICSA projects are still eligible for the additional performance-based incentive. Another 400 MW block is in the works but could offer a different incentive to reflect market conditions.

New York is expected to come under budget in its goal to install 10 GW of distributed solar by 2030. The PSC issued an order in April indicating how NYSERDA should allocate the anticipated $421 million budget surplus. There’s a clear winner and loser in community solar: The order directs a portion of the funds ($150 million) into Statewide Solar for All, the utility-administered opt-out community solar program, while allocating no new funding for the Inclusive Community Solar Adder (ICSA). There’s no question that this is a disappointing outcome but there is still funding available for 700 MW of upstate ICSA projects. The best way to support the program is to expand its proven track record for delivering meaningful savings. Meanwhile, solar advocates have been at the Capitol in full force pushing for the Accelerate Solar for Affordable Power (ASAP) Act, which would raise the distributed solar goal, enact interconnection reforms, and extend the NY-Sun program.

On December 20, the PSC issued an order requiring the utilities to implement net crediting for community solar projects compensated by NEM within 12 months. To date, net crediting has only been available to projects compensated by VDER. By January 1, 2026, the utilities are required to provide tariff amendments and updated net crediting manuals to capture the availability of net crediting for volumetric projects. Looking forward, we’re also expecting the added flexibility for net crediting projects to offer three unique discount rates to be available by June.

At NYSEIA’s annual solar summit in Albany, Solstice attended NYSERDA’s billing and crediting working group where stakeholders shared updates and priorities on community solar processes. From an industry perspective, the calls were to standardize operating procedures across utilities (e.g. host statements) and improve the customer experience (e.g. presentation of community solar on bills). The utilities focused on sharing updates regarding three priorities: supporting three unique discount rates on net crediting projects; implementation of net crediting for NEM projects; and setting up systems to support the statewide solar for all program.

On May 16, the PSC released an order in case 21-E-0629 that requires the utilities to support offering three unique discount rates on community solar projects that are billed under net crediting. The order also allows for discounts up to one decimal place (e.g. 7.5%) and for multiple anchor tenants to opt out from net crediting. Implementation is required within one year so we expect to see the updated functionality by June 2025, barring additional delays.

On April 24, NYSERDA announced an additional incentive for projects that are awarded the Inclusive Community Solar Adder but neither the Community Adder nor Community Credit. The fixed $0.07/watt incentive will serve as a direct replacement for the Community Adder that was exhausted in the Upstate region back in October. It will apply to the total capacity of the project – as long as the project meets minimum ICSA requirements – and is paid out in full at the same time as the first (of three total) ICSA performance payment. The additional funds were made available on May 7 and have no impact on the program’s existing requirements or performance-based incentive payments.