April 15, 2020
The Long Island solar market has recently undergone significant changes associated with the Value of Distributed Energy Resources, also known as VDER. All electricity that is generated by solar power and exported to the Long Island electric grid—operated by PSEG-LI and owned by LIPA—is compensated under VDER.
So the monetary value determined by VDER, multiplied by the MWhs of solar electricity generated, is how you calculate the revenue received from your solar panels. The quantity of electricity that can be generated by 1 MW of solar panels is a stable figure based on the forecasted weather conditions and irradiance for the region. The stability of VDER and having predictable revenue sources makes the solar project bankable.
Long Island Community Solar (Community Distributed Generation) Timeline
July 2019: Long Island Community Credit originally proposed at 1.5 cents.
July 2019: CC modified to 2.25 cents prior to board vote. Approved by LIPA board.
July - November 2019: LISSA and stakeholders asked for a modified CC rate (10 cents) consistent with New York City (12 cents). Requests and sign-on letters were sent to LIPA and we met with elected officials.
December 2019: LIPA announced their own community solar program.
December 2019: LISSA held a press conference protesting the unviable 2.25 cents rate.
December 2019: LIPA announced they would revisit the CDG (community distributed generation) credit and reevaluate different models.
LIPA proposed to increase the CC rate to 5 cents from 2.25 cents and to give an additional adder of $200/kW for projects <750kW through 2020 to provide short-term certainty and get CDG projects moving this year. LISSA attended this week's LIPA board meeting to express appreciation for their work to address these near-term CDG issues. LIPA and LISSA will be meeting quarterly to assess progress in the program.
If you’re interested in Long Island community solar, contact YSG today. YSG Solar has a number of exciting community solar subscriptions available across New York State, including The Pitkin Project in East Brooklyn. Send us an email, or call the office at 212.389.9215 to learn more.