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Incentives/Policies for Renewables & Efficiency

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NYSERDA - PV Incentive Program
Last DSIRE Review: 10/14/2009  
Incentive Type: State Rebate Program
State: New York
Eligible Renewable/Other Technologies: Photovoltaics
Applicable Sectors: Commercial, Industrial, Residential, Nonprofit, Schools, Local Government, State Government, Institutional, (Must be customer of investor-owned utility in NY)
Incentive Amount:$1.50-$4/watt DC. Varies by sector, installed capacity, and system type;
Incentive may be reduced for potential production losses associated with shading, system orientation, tilt angle, and other factors
Maximum Incentive:Maximum determined by sector and incentive amounts.
Residential: $24,000
Non-residential: $200,000
Non-profit, gov't, schools: $112,500
Numbers above include bonus incentives for BIPV, Energy Star Homes
Eligible System Size:None specified, but systems may not exceed 110% of demonstrated energy demand.
Equipment Requirements:Systems must be new, UL-listed, and compliant with all applicable performance and safety standards; minimum five-year warranty on all equipment and two-year warranty on battery back-up systems.
Installation Requirements:Installation must comply with all federal, state and local codes; must be grid-connected and installed by a pre-approved contractor; must comply with New York's Standard Interconnection Requirements
Program Budget:$75.3 M (2008-2009)*
Ownership of Renewable Energy Credits:NYSERDA for first 3 years of system operation, thereafter customer/generator
Funding Source:RPS surcharge
Expiration Date12/31/2009
Project Review/CertificationSystems may be inspected by NYSERDA and/or other authorities having jurisdiction; Performance monitoring and data reporting required for first 3 years of system operation
Web Site: http://www.powernaturally.org/
Programs/Solar/incentives.asp



Summary:
Note: On October 13, 2009, NYSERDA issued a letter to eligible photovoltaic (PV) installers informing them that high program demand compelled them to reduce incentive levels, effective immediately. This summary reflects these changes, which have reduced residential and commercial incentives by $0.50 per watt, and incentives for non-profits by $1.00 per watt.  
 
The New York State Energy Research and Development Authority (NYSERDA) provides incentives of $1.50 to $4 per watt (DC) to eligible installers for the installation of approved, grid-connected photovoltaic (PV) systems. The maximum capacity supported by the program is eight kW for residential systems; 80 kW for non-residential systems; and 25 kW for non-profits, schools and municipalities. Larger systems are eligible for incentives, but incentives may only be received for installed capacity up to the program caps. Incentives are only available to eligible installers, and incentives must be passed on to customers. Once eligible, installers reserve incentives for approved systems, for specific customers, on a first-come, first-served basis for as long as funds are available.  
 
During 2008 and 2009, this program will provide $75.3 million in funding for PV systems.* The program continuously accepts applications from installers who seek to participate. The goal is to increase the network of eligible installers across the state, offering customers a choice of qualified or certified installers in their area.  
 
Installer eligibility will be determined and maintained based on factors such as acceptance of all program terms and conditions, training, installation experience, track record related to utility interconnections, overall performance, monitoring, customer references, customer satisfaction, and commitment to become certified through a national certification program. NYSERDA is providing accredited training opportunities for PV installers to the greatest extent possible. Training opportunities are posted at www.powernaturally.org. The program web site (listed above) provides a list of eligible installers. There are currently more than 80 installers on the list.  
 
Total incentives may not exceed 50% of the installed project cost. Within this limitation program incentives effective October 13, 2009, (based on direct-current [DC] module ratings at standard test conditions) are as follows:
  • Residential incentives: $2.50/W up to 4 kW, $1.50/W for next 4 kW up to a maximum of 8 kW per site meter  
  • Non-residential incentives: $2.50/W up to 40 kW, $1.50/W for next 40 kW up to a maximum of 80 kW per site meter  
  • Schools, non-for-profit organizations, and municipalities: $4.00/W up to a maximum of 25 kW per site meter  
  • Bonus incentive: $0.50/W for Energy Star Homes and building-integrated PV (BIPV) systems
Exemptions to the capacity caps may be provided on a case-by-case basis and NYSERDA reserves the right to limit the incentives available per customer/site. PV systems must be sized to meet specific site energy needs (local load or demand) and may not exceed 110% of the demonstrated energy demand for the site, taking into account any other on-site electrical power generation systems. Incentive levels will be reduced in proportion to potential output losses of greater than 20% for traditional PV systems and 40% for building integrated systems, as determined by the required installer system analysis.  
 
Incentives will be paid to installers in two increments and are tied to specific installation milestones. The first incentive payment, or 75% of the total incentive amount approved by NYSERDA, will be paid after all system components have been delivered to a customer’s site and the appropriate form is completed, submitted and approved by NYSERDA. The second incentive payment, or the remaining 25%, will be paid after a PV system has been connected to the utility grid and/or inspected by NYSERDA or its representatives and the appropriate form has been completed, submitted and approved by NYSERDA. The Energy Star Home bonus incentive will not be paid until the home has been registered with the New York State Builders Association.  
 
Customers who pay the state's RPS charge are eligible to participate in the PV Incentive Program. These includes customers of the following utilities: Central Hudson Gas & Electric Corporation, Consolidated Edison Company of New York, New York State Electric & Gas Corporation, Niagara Mohawk Power Corporation, Orange and Rockland Utilities, and Rochester Gas and Electric Corporation. NYSERDA will hold the title to renewable energy credits (RECs) associated with the system's energy production for a period of three years, after which REC ownership will revert to the customer/generator.  
 
PV incentives are available for many end-uses (building or non-building) and sectors, including the residential, commercial, industrial, agricultural, institutional, educational and non-for-profit facilities, and government sectors. Incentives provided to customers under this program may not be combined with any other incentive programs offered by NYSERDA, such as a dollar-per-watt incentive, designed to directly offset the cost of a PV installation. However, commercial incentives may be combined with assistance from the Energy Smart Loan Fund to the extent such assistance is available.  
 
 
* The original Customer-Sited Tier Operating Plan authorized $13.8 million for this program during 2008 and 2009. However, discretionary funding amounting to $4.4 million was later added in order to meet program demand. Supplements of $20.6 million (PSC order) in October 2008 and $21.5 million (NYSERDA reallocation) were made through February 2009 in order to keep the program open. Finally, an additional $15 million in program funding was authorized in June 2009 by order of the PSC, bringing total 2008-2009 funding to $75.3 million. The June 2009 PSC order contains a detailed description of this progression.


 
Contact:
  Public Information - NYSERDA
New York State Energy Research and Development Authority
17 Columbia Circle
Albany, NY 12203-6399
Phone: (866) 697-3732
Phone 2: (518) 862-1090
Fax: (518) 862-1091
E-Mail: info@nyserda.org
Web Site: http://www.nyserda.org
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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.

© 2009 N.C. Solar Center / N.C. State University / College of Engineering