New York PSC Modifies Value Of Distributed Energy Resources Compensation (Community Solar)
April 19,2019
The New York PSC adopted an order modifying provisions of its Value of Distributed Energy Resources (VDER) policy
The PSC said that its order, "will create the potential for more than 1,000 megawatts (MW) of additional community distributed generation (CDG) projects beyond the 500 MW of projects already in the pipeline."
Among other things, the PSC said that the order
• Provides for alternative incentive mechanisms for community solar in the Central Hudson Gas & Electric and Orange and Rockland utility regions, where CDG development has already been robust
• Improves the process for calculating and compensating for the distribution value of clean and renewable generation through more predictability and financeability; and
• Expands net energy metering to systems up to 750 kW in size in cases where onsite energy generation is primarily used to satisfy a customer’s demand. Because the rate designs are applicable only to these customers, expanding net metering to them will not shift significant costs to other customers
The PSC said that, "The order will provide additional opportunity for customers to participate in CDG projects within utility territories where previously authorized MTCs [Market Transition Credits] have been fully subscribed. This includes Orange & Rockland and Central Hudson, where more than 190 megawatts (MW) of CDG are already in service or in advanced stages of development. Existing funds will be used to provide upfront incentives to about 100 megawatts of new projects split between Orange & Rockland and Central Hudson, to nurture continued market growth while managing overall costs."
The PSC said that, "Additionally, new projects outside of O&R and Central Hudson receive 'Community Credits in place of an MTC.' These new credits are enhanced and standardized to both provide a greater opportunity for clean energy projects to lower financing costs and enable additional electric customers in upstate utility territories to meet their energy needs by participating in a CDG project. These Community Credits will be available to more than 700 megawatts of new projects, thereby creating robust CDG opportunity for New Yorkers across the state. Furthermore, 400 MW of Community Credits will be available in Con Edison for new CDG projects."