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New York

New York

Incentives/Policies for Renewables & Efficiency

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Anaerobic Digester Gas-to-Electricity Rebate and Performance Incentive   

Last DSIRE Review: 04/26/2013
Program Overview:
State: New York
Incentive Type: State Rebate Program
Eligible Renewable/Other Technologies: Anaerobic Digestion
Applicable Sectors: Commercial, Industrial, Residential, Nonprofit, Schools, Local Government, Tribal Government, Agricultural, Institutional
Amount:Fixed Base Incentive: varies
Capacity Incentive: varies
Production Incentive: $0.025/kWh production payment for new systems for up to 10 years (estimated using a capacity factor of 75%)
Maximum Incentive:Total Incentive: $2 million (combined production and capacity incentives)
Fixed Base + Capacity Incentive: varies, limited to the total maximum incentive of $2 million minus the applicable performance incentive
Eligible System Size:Minimum: 100 kW
Maximum: Generally limited by net metering limit for net metered systems (1 MW) or the customer's peak connected load (may be adjusted on a case-by-case basis if recognized public benefits exist)
Equipment Requirements:Under the current solicitation, only new systems are eligible for incentives
Ownership of Renewable Energy Credits:NYSERDA
Funding Source:RPS surcharge; NYPA
Program Budget:$28.6 million (current solicitation)
Expiration Date:01/31/2013 (most recent solicitation)
Web Site:

Note: This program is not currently accepting applications. Check back for updates regarding future solicitations.

The Anaerobic Digester Gas-to-Electricity program is designed to support small-sized electricity generation where the energy generated is used primarily at the electric customer's location (third-party project ownership structures are permitted). Interested parties should note that it combines both an up-front incentive for new installed capacity and a performance-based incentive for energy production. The program has been classified as a rebate program because program details suggest that the bulk of incentives available for a given project will take the form of an up-front payment based on new installed capacity.

Customer eligibility is generally limited to those that that pay the RPS surcharge on their electric bills (i.e., customers of the state's major investor-owned utilities). The electricity generated under the program will be counted towards the Customer-Sited Tier (CST) portion of the state RPS. The current program authorization extends through December 31, 2015, but the recent project solicitation under PON 2684 has an application deadline of January 31, 2013. A total of $57 million has been authorized to fund incentive payments through 2015 (annual budgets range from roughly $10 - $13 million), limited to $1 million per Anaerobic Digester Gas (ADG) system. Under PON 2684 the maximum incentive has been increased to $2 million using funding from the NYPA. The total funding available under PON 2684 ($28.6 million) reflects the 2012 and 2013 program budgets authorized by the PSC and an additional $5 million from the NYPA. Only new systems of at least 100 kW that use dairy farm waste or dairy product processing waste for at least 50% of their feedstock input are eligible for funding under PON 2684.

Eligible system size is limited to either: (1) the capacity eligibility limit on farm based electricity generating equipment under New York's net metering law which is currently set at 1 megawatt (MW), or (2) the customer's approximate Peak Connected Load. The peak load limitation may be adjusted if NYSERDA determines that public benefits or practical considerations argue in favor of a higher limit. In order to participate in this program, applicants must comply with all program rules, procedures, and eligibility requirements, submit all required forms and supplemental documentation, and enter into a Standard Performance Contract Agreement with NYSERDA. Applicants must also adhere to measurement and verification requirements throughout the term of the Agreement.

The total incentive available under PON 2684 includes several elements. The capacity based incentives include distinct incentives for both the digester and generator components of a system, as well as certain additional system components or capabilities. In summary, the available incentives are as follows (see PON 2684 for further details):

  • Fixed Capacity Incentive: Ranges from $12,500 - $100,000, depending on the type of equipment being employed
  • Variable Capacity Incentive: Ranges from $125/kW - $2,000/kW, depending on the type of equipment being employed.
  • Performance-Based Incentive: $0.025/kilowatt-hour (kWh) on up to 10 years of estimated electricity production using a 75% capacity factor.
  • Additional Component Capacity Incentives: Available for systems that employ higher quality biogas clean up measures, have grid upgrade costs exceeding $100,000, have black start capability, are designed to accept significant quantities of food waste, have contracts with institutional sources for acceptance of food waste feedstock, or employ cooperative group management services with at least two other digesters. These incentives include a fixed and variable component.

For projects that receive federal funding (e.g., a 1603 Treasury Grant), the capacity incentive will be reduced by 50% of that additional funding. The total capacity incentive (fixed plus variable) is limited to the maximum available incentive of $2 million minus the performance incentive. NYSERDA will pay up to 10% of the total calculated performance incentive in the form of an annual payment during each of the first 10 years of the performance period. The percentage paid in a given year is determined by the ratio of actual electricity production compared to the total contracted generation.

NYSERDA counts the environmental attributes associated with energy production by funded systems towards the state RPS target for the life of the system. For further program details, including application materials and information on additional requirements, visit the program web site listed at the top of this page.

  Tom Feisinger
New York State Energy Research and Development Authority
17 Columbia Circle
Albany, NY 12203-6399
Phone: (518) 862-1090 Ext.3218
Web Site:
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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 2013 - 2014 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.