NY-Sun PV Incentive Program (Residential, Low-Income, and Small Business)

The New York State Energy Research and Development Authority (NYSERDA) through NY Sun Incentive Program (PON 2112) provides financial incentives for the installation of approved, grid-connected photovoltaic (PV) systems. The program was re-launched in 2014 with a goal of supporting 3.175 GW of installed capacity by 2023, which was expanded in 2020 to 6 GW of installed capacity by 2025, and again in 2022 to 10 GW by 2030. The program provides cash incentives for residential solar systems that are 25 kW or less, and for nonresidential systems that are 750kW or less in Upstate and PSEG Long Island region and up to 7.5MW in the Con Ed region.

Incentive Description

NYSERDA has established separate megawatt (MW) budgets for different regions of the state. These MW block targets are specified for three regions: areas served by Con Edison, areas served by PSEG Long Island, and for the rest of the state (Upstate). The MW Block program is based on a declining capacity block model - an incentive structure designed to provide certainty and transparency around incentive levels, account for regional market differences, clarify that NY intends to phase out incentives in a reasonable time frame, and eliminate those incentives sooner in regions where market conditions can support it based on market penetration, demand, and payback. NY-Sun incentives for the Long Island region have been fully allocated as of February 2019, with the exception of the Affordable Solar Residential Incentive and the Multifamily Affordable Housing Incentive.

Incentives are granted on a first-come, first-served basis. Applications will be accepted through 12/31/2030 or until funds are fully committed, whichever comes first. Incentives are paid directly to the pre-approved contractor and must be applied in full to the cost of the PV system, thereby reducing the out-of-pocket cost to the customer. For projects with a capacity of 1 MW or greater that submit utility interconnection applications after 4/14/2022, incentives will be conditional on the developer paying prevailing wages for construction activities associated with project design and installation.

Information on the MW block design, including real-time data on the current incentive levels can be found by visiting NY-Sun’s Dashboards and Incentives page.

Customers of investor-owned utilities, including 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, Rochester Gas and Electric Corporation, and PSEG Long Island are eligible to participate, as well as customers of NYPA and municipally-owned utilities.

Additional Adders/Incentives:

Affordable Solar Residential Incentive: $0.80/W total (Con Ed and Upstate); $0.40/W total (Long Island)

Multifamily Affordable Housing Incentive: $1.00/W for the first 200 kW of the project (Upstate and Long Island); $1.60/W for the first 200 kW of the project for non-CDG projects and $2.00/W for the first 200 kW of the project for CDG projects (Con Ed)

Rooftop Solar Canopy Incentive: $0.20/W for the first 25 kW of the project (Con Ed)

Parking Solar Canopy Incentive: $0.20/W (Con Ed)

Brownfield/Landfill Solar Incentive: $0.15/W

Floating Solar Adder: $0.15/W

Prevailing Wage Incentive Adder: $0.20/W (Con Ed); $0.125/W (Upstate)

Community Adder: $0.20/W (Con Ed); fully allocated (Upstate)

Inclusive Community Solar Adder: $0.20/W (Con Ed); $0.05 - $0.17 (Upstate)

Statewide Solar for All adder: $0.20/W (Con Ed); $0.07/W (Upstate)

Affordable Solar

The program provides additional incentives for low-to-moderate income households. To receive this adder, the customer must submit the NYSERDA Income Eligibility application. Applicants must submit documentation demonstrating income eligibility, this includes but is not limited to, award letters for EmPower NY, SNAP, social security, or documentation of all forms of income. Eligible projects will receive a total incentive of $0.80/W in the Con Ed and Upstate regions and $0.40/W in the Long Island region. If the region’s standard incentive in the final MW Block is exhausted, eligible projects will continue to receive this incentive until funding is exhausted. Eligible systems are limited to a nameplate capacity of the lower of either 110% of projected annual energy usage after implementation of electric efficiency measures identified by the required audit or confirmation that these measures are already in place, or 100% of current annual energy usage.

Multifamily Affordable Housing Adder

Additional incentives are available for nonresidential projects serving multifamily affordable housing properties in the Upstate and Long Island region. Eligible projects will receive a total incentive of $1.00/W for the first 200 kW of the project: the applicable nonresidential base incentive and Community Adder (if applicable), plus an added incentive. The added incentive will be adjusted as the base incentive steps down to maintain the $1.00/W total.

To receive this incentive, projects must be sited at an affordable housing property that has documented eligibility and offset the usage of the affordable housing property (behind-the-meter) or its residents (Community Distributed Generation from system located on the property). Community Distributed Generation projects on eligible properties will receive an additional $0.15/W if the project is owned by a public housing authority or nonprofit, demonstrates that no less than 60% of the capacity will be dedicated to low-to-moderate income satellite accounts with a minimum bill credit discount of 20% of equivalent, and meets other criteria.