New York Projects (* indicates planned community solar projects)
New York Value of Distributed Energy Resources (VDER) ProgramThe State of New York has developed a new program to transition the compensation of distributed energy sources. The Value of Distributed Energy Resources (VDER), also called the Value Stack, incentivizes development of distributed energy resources such as community solar projects, remote net metering projects, and large behind-the-meter projects servicing a customer load. Various incentives factor into the Value Stack, providing higher compensation to projects that service areas of high congestion or peak demand windows. The Value Stack has seven potential incentives a project can obtain. The Energy (LMBP) credit is based on day-ahead hourly wholesale energy rate provided by NYISO. The Capacity (ICAP) has 3 options a project can choose from, allowing for maximized compensation based on times of energy provided to the grid. The Environmental Credit (E ) provides a fixed rate locked in for 25 years dependent upon the environmental benefits a project provides. The Demand Reduction Value (DRV) provides a current locked in rate for the first 10 years for kilowatt-hours produced during determined peak windows of energy demand, with potential adjusted rates paid for years 11-20, and again for years 20-25. The CSRP is an incentive provided for projects specifically in ConEdison territory for areas of higher energy demand. Similarly, the Locational Value (LSRV) provides an incentive to projects within a determined utility load pocket in each utility’s zone for high demand areas. This incentive is paid per kW during 10 call events per year. Finally, the CDG adder is an incentive provided to community solar projects, allowing an extra provided rate locked in for 25 years. The sum of the applicable incentives for each project will determine the overall compensation. This compensation is then applied to each kWh provided to the grid after offsetting any onsite load. The Value Stack is intended to provide decreasing incentives as market demands become more favorable for distributed energy resources. Therefore, as more projects are developed in each utility region, the compensation rates for new projects will decrease. AC Power is committed to working diligently with our partners to evaluate each project and maneuver the permitting and application process efficiently in order to lock in optimal rates.
NY Sun Incentive ProgramAs a participating contractor in the NY Sun program, AC Power is certified to apply projects to acquire NY Sun incentives in addition to VDER incentives. Through the Clean Energy Fund allocated by the New York State Public Service Commission and the Regional Greenhouse Gas Initiative, grid-connected solar photovoltaic systems are now able to gain incentives through the NY Sun Incentive Program. The incentives are provided based on MW blocks determined by region, project size, and time of application. As the program is intended to phase out as the market becomes more favorable to solar, the compensation for each block progressively decreases until the region and sector is fully subscribed. The program will accept applications through December 31, 2023 or until all funds are committed. Incentives gained through this program are directly applied to either the total solar electric system price in a direct purchase, or to reduce the kilowatt-hour cost in a PPA or lease agreement. Additional incentives can be achieved through projects servicing low- to moderate-income residences, multifamily affordable housing, projects located on brownfield or landfill sites, or projects paired with energy storage.