New York
Incentives/Policies for Renewables & Efficiency
|
 |
Last DSIRE Review: 09/09/2009
| Incentive Type: |
Net Metering |
| State: |
New York |
| Eligible Renewable/Other Technologies: |
Photovoltaics,
Wind,
Biomass,
Anaerobic Digestion
|
| Applicable Sectors: |
Commercial,
Industrial,
Residential,
Nonprofit,
Schools,
Local Government,
State Government,
Fed. Government,
Agricultural,
Institutional
|
| Applicable Utilities: | Investor-owned utilities
|
| System Capacity Limit: | 2 MW or peak load (lesser of) non-residential solar or wind; 500 kW for agricultural wind or biogas; 25 kW for residential solar or wind
|
| Aggregate Capacity Limit: | 1% of utility's 2005 demand for solar and agricultural biogas; 0.3% of utility's 2005 demand for wind
|
| Net Excess Generation: | Credited to customer's next bill at retail rate; excess reconciled annually at avoided-cost rate; excess for non-residential wind and solar carries over indefinitely
|
| REC Ownership: | Not addressed
|
| Meter Aggregation: | Not addressed
|
|
Web Site: |
http://www.dps.state.ny.us/distgen.htm
|
|
Authority 1:
|
NY CLS Public Service, Article 4 § 66-j and § 66-l
|
| Date Enacted: | 08/02/1997 (subsequently amended) |
|
Authority 2:
|
NY PSC Order Case 08-E-1305 et al.
|
| Date Enacted: | 02/13/2009 |
| Date Effective: | 02/27/2009 |
|
Authority 3:
|
NY PSC Order Case 09-E-0284 et al.
|
| Date Enacted: | 06/22/2009 |
| Date Effective: | 07/01/2009 (generally) |
|
Authority 4:
|
A.B. 2442
|
| Date Enacted: | 08/26/2009 |
| Date Effective: | 08/26/2009 |
|
|
Summary:
Note: In August 2009 the Governor signed legislation (A.B. 2442) allowing net metering for residential combined heat and power (CHP) and fuel cell systems of 10 kW or less. Unlike other technologies eligible for net metering CHP and fuel cell systems will receive only the avoided cost rate (as opposed to the retail rate) for generation in excess of usage during a billing period. Utilities will need to submit revised tariffs incorporating these changes to the New York Public Service Commission for approval before the new law can be implemented. The remainder of this summary describes net metering as it exists in New York apart from these changes. It will be updated accordingly when net metering actually becomes available for CHP and fuel cell facilities upon the adoption of revised utility tariffs and contracts.
In August 2008 New York enacted a series of bills (S.B. 7171, S.B. 8415, and S.B. 8481) amending the state's net metering laws, most notably expanding net metering eligibility to non-residential PV and wind systems (see History section for prior rules). In February 2009 the New York Public Service Commission (PSC) issued an order revising and approving several utility tariffs associated with these changes. A second order issued in June 2009 addressed further tariff filings and ordered changes to these and some previously filed tariffs. The revised tariffs are generally effective July 1, 2009.
Net metering is available on a first-come, first-served basis to customers of the state's major investor-owned utilities, subject to technology, system size and aggregate capacity limitations. Publicly-owned utilities are not obligated to offer net metering; however, the Long Island Power Authority (LIPA) offers net metering on terms similar to those in the state law. Below is listing of the system size limitations, organized by technology and eligible sector. - Solar: 25 kW for residential, 2 MW or peak load (lesser of) for non-residential;
- Wind: 25 kW for residential, 500 kW for farm-based, and 2 MW or peak load (lesser of) for non-residential;
- Biogas: 500 kW (farm-based only)
The aggregate limit on net-metered PV and on-farm biogas systems combined is set at 1.0% of a utility's 2005 electric demand, while the limit on aggregate wind system capacity is 0.3% of 2005 demand. Individual utilities are authorized to place higher limits on aggregate net-metered capacity if they choose to do so. In addition the PSC has determined that the maximum system size for small non-residential customers that are not on demand meters should be limited to the utility's threshold for requiring a demand meter. This threshold falls between 5 kW and 12 kW depending on the utility in question.
For all types of systems, customer net excess generation (NEG) in a given month is credited to the customer's next bill at the utility's retail rate. A slightly different methodology is used for customers on demand meters. At the end of each annual billing cycle, most customers (i.e., residential and farm-based systems) will be paid at the utility's avoided-cost rate for any unused NEG. Compensation for unused NEG produced by non-residential wind and solar systems is not addressed by the statute, however, the PSC determined in its February 2009 order that unused NEG should be carried forward from one year to the next.
The legislation and subsequent PSC orders also establish rules relating to customer responsibility for interconnection costs (e.g., new meters, transformers, or other equipment) and limitations on such costs. Cost treatments vary by customer type and system size (see § 66-j and 66-l for details). The ownership of renewable energy credits (RECs) and other environmental attributes associated with energy production from net metered systems remains unaddressed.
The PSC has developed uniform interconnection rules for net-metered systems. The 2008 amendments added identical language providing for the development of interconnection standards for non-residential systems. See the PSC web site for more information, including a list of accepted (type-tested) inverters.
History
New York's original net-metering law, enacted in 1997, applied only to residential photovoltaic (PV) systems up to 10 kilowatts (kW). In 2002, the law was expanded (S.B. 6592) to include farms that generate electricity from biogas produced by the anaerobic digestion of agricultural waste, such as livestock manure, farming waste and food-processing wastes. Farm-based biogas systems with a rated capacity of up to 400 kW may net meter. In 2004, S.B 4890-E (of 2003) further expanded the law to include residential wind turbines up to 25 kW and farm-based wind turbines up to 125 kW.
Prior to the 2008 amendments, PV systems, farm biogas systems and small wind systems (10 kW and less) with customer net excess generation (NEG) for a given month had it credited to the their next bill at the utility's retail rate. At the end of each annual billing cycle, such customers were paid at the utility's avoided-cost rate for any unused NEG. However, NEG from wind-energy systems larger than 10 kW was credited to the next month’s bill at the state's avoided-cost rate. Large wind energy systems also received compensation for annual NEG at the avoided-cost rate.
|
|
|
 |
Please note: The information on the DSIRE web site provides an overview of incentives and other policies, but it should not be used as the only source of information when making purchasing decisions, investment decisions, tax decisions or other binding agreements. Please refer to the individual contact provided in each record to verify that a specific incentive or other policy is applicable to your specific project.
|
