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New York

New York

Incentives/Policies for Renewables & Efficiency

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PSEG Long Island - Net Metering   

Last DSIRE Review: 10/07/2014
Program Overview:
State: New York
Incentive Type: Net Metering
Eligible Renewable/Other Technologies: Photovoltaics, Wind, Fuel Cells, CHP/Cogeneration, Anaerobic Digestion, Fuel Cells using Renewable Fuels, Microturbines
Applicable Sectors: Commercial, Industrial, Residential, Nonprofit, Schools, Local Government, State Government, Agricultural, Institutional
Applicable Utilities:PSEG Long Island
System Capacity Limit:2 MW for non-residential solar or wind; 500 kW for agricultural wind and 1 MW for agricultural biogas; 25 kW for residential solar or wind; 10 kW for residential micro-CHP and fuel cells
Aggregate Capacity Limit:150 MW for solar, agricultural biogas, residential micro-CHP and fuel cells; 0.3% (15.3 MW) of utility's 2005 demand for wind
Net Excess Generation:Credited to customer's next bill at retail rate, except seasonal avoided for micro-CHP and fuel cells; excess generally reconciled annually at seasonal avoided-cost rate, except annual excess for micro-CHP and fuel cells carries forward indefinitely
REC Ownership:Not addressed
Meter Aggregation:Allowed for non-residential and farm-based customers with solar, wind, and farm-based biogas systems
Web Site:
Authority 1:
Date Effective:
PSEG Traiff for Electric Service
Authority 2:
Date Enacted:
Date Effective:
A.B. 5525

NOTE: As of January 1, 2014, Long Island is served by PSEG Long Island, replacing Long Island Power Authority (LIPA).

Although PSEG Long Island’s net metering policy is not governed by the State’s net metering law, the provisions are similar to the State law. Net metering is available for residential, non-residential, and farm-service PV and wind energy systems, farm-service, and residential micro-CHP and fuel cell systems. Eligible systems are subject to the following system capacity limits:

  • Residential: Solar and wind systems up to 25 kW, micro-CHP and fuel cell systems from 1 - 10 kW
  • Farm-Service: Solar systems up to 25 kW, wind systems up to 500 kW, and anaerobic digester systems up to 1 MW
  • Non-residential: Solar and wind energy systems up to 2 MW

Net metering will be made available until overall solar, agricultural biogas, residential micro-CHP and fuel cell system enrollment reaches 150 MW and overall wind enrollment reaches 15.3 MW (0.3% of 2005 peak electric demand) although the utility may expand this limit at its discretion. The 150 MW limit for non-wind systems represents such a change, as the former limit was set at 51.2 MW, or 1% of utility's 2005 peak demand.

Net metering is generally accomplished using a single bi-directional meter, although other arrangements are possible for hybrid systems that combine a solar or wind energy system with an agricultural biogas, micro-CHP, or fuel cell system. For solar, wind, and anaerobic digester systems, net excess generation (NEG) is carried forward from month to month at the customer's retail electricity rate. Excess NEG left over at the end of a 12-month period is purchased by PSEG Long Island at the seasonal (winter/summer) avoided cost rates. For residential micro-CHP and fuel cells, NEG is purchased on a monthly basis at the avoided cost rate and any resulting credits carry forward indefinitely.

Since 2012, farm-based and non-residential customer-generators are eligible to engage in "remote" net metering of solar, wind, and farm-based biogas systems. The law permits eligible customer-generators to designate net metering credits from equipment located on property which they own or lease to any other meter that is located on property owned or leased by the customer that is within its service territory and same load zone as the net metered facility. Credits will accrue to the highest use meter first, and as with standard net metering, excess credits may be carried forward from month to month.

Customers on tariffs that include demand charges will only be billed for the measured maximum kW demand actually supplied by PSEG Long Island during the billing period. Ownership of renewable energy credits (RECs) is not addressed in the net metering tariff; however, PSEG Long Island retains ownership of any RECs produced by systems that participate in its solar and wind energy rebate programs.

Residential and farm-service customers that install systems of 27.5 kW or less are not required to pay any interconnection charges. Farm-service customers that install larger systems are responsible for paying 50% of the applicable interconnection expenses, and non-residential customers are responsible for 100% of the cost of interconnection. Additional charges may apply in situations where the interconnection requires a dedicated transformer or additional safety equipment. Such charges are limited to $350 - $5,000 for most systems, but are based on actual costs without a limit for non-residential PV systems.

All net metered systems must comply with the equipment and installation specifications contained in PSEG Long Island’s Interconnection Guide for Independent Power Producers. These guidelines historically required the installation of a utility accessible external disconnect switch (EDS) for all systems. This contrasts with the New York Standard Interconnection Requirements (SIR) for the state's investor-owned utilities, which exempt inverter-based facilities of 25 kW or less from the EDS requirement. 

  Customer Service
PSEG Long Island
25 Hub Drive
Melville, NY 11747
Phone: (800) 490-0025
Web Site:
NCSU - home
Disclaimer: The information presented on the DSIRE web site provides an unofficial overview of financial incentives and other policies. It does not constitute professional tax advice or other professional financial guidance, and it should not be used as the only source of information when making purchasing decisions, investment decisions or tax decisions, or when executing other binding agreements. Please refer to the individual contact provided below each summary to verify that a specific financial incentive or other policy applies to your project.

While the DSIRE staff strives to provide the best information possible, the DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. make no representations or warranties, either express or implied, concerning the accuracy, completeness, reliability or suitability of the information. The DSIRE staff, the N.C. Solar Center, N.C. State University and the Interstate Renewable Energy Council, Inc. disclaim all liability of any kind arising out of your use or misuse of the information contained or referenced on DSIRE Web pages.

Copyright 2014 - 2015 North Carolina State University, under NREL Subcontract No. XEU-0-99515-01. Permission granted only for personal or educational use, or for use by or on behalf of the U.S. government. North Carolina State University prohibits the unauthorized display, reproduction, sale, and/or distribution of all or portions of the content of the Database of State Incentives for Renewables and Efficiency (DSIRE) without prior, written consent.