February 7, 2020
Last week, on January 28, 2020, NYSERDA announced a number of revisions to its Energy Storage Market Acceleration Incentives Implementation Plan. The revisions were filed with the Department of Public Service and will lead to changes for NYSERDA’s Energy Storage Incentive Programs—the Retail Energy Storage Incentive Program and the Bulk Energy Storage Incentive Program.
These two energy storage incentive programs have generated a great deal of interest since their initial launch in 2019, with NYSERDA committing $187 million in funding thus far, totalling over 500 MW and 1,800 MWh worth of energy storage projects.
A number of different factors have been taken into account ahead of these revisions, with NYSERDA responding to market conditions in order to sustain these incentives and ensure effective deployment of funds within the energy storage market. Those factors informing the revisions include, but aren’t necessarily limited to:
Changing Market Conditions
Input From Stakeholders
Interconnection Queues For Energy Storage Projects
Below, you’ll find an outline of these changes, divided by program. According to NYSERDA, these changes are effective immediately, unless otherwise noted.
Retail Energy Storage Incentive Program
Con Edison Westchester Block: A new Con Edison Westchester Block will become available for applications within the next few months. The rate for this block will be $175/kWh. Once the applications portal has been updated to reflect this new block, participating contractors will be notified by NYSERDA.
Rest of State (ROS) Blocks: No new ROS Blocks will be issued at the current time. The current ROS Blocks, including investor-owned utilities outside Con Ed/Long Island, have been fully subscribed. NYSERDA is monitoring market conditions/incentive commitments and will consider additional ROS Blocks at the end of 2020.
Project Application Requirements: New project application requirements, if applicable to the specific project, include Planning and Zoning Board approval, an approved Special Use Permit, and a negative declaration under the State Environmental Quality Review Act (SEQRA).
Incentive Levels: For the first 4 hours of a system’s duration, stated incentive levels will be provided at the dollar values listed. This declines to 25% of the dollar value for hours 5 and 6. Finally, there will be no incentive for a duration beyond 6 hours.
Further information on the Retail Energy Storage Incentive Program, and these updates, is available here.
Bulk Energy Storage Incentive Program
New Eligibility: Those projects in Con Ed NYC service territory that didn’t participate in Con Edison’s Bulk Storage Dispatch Rights RFP, or aren’t selected, will be eligible for NYSERDA incentives under the Bulk Energy Storage Incentive Program from April 1, 2020.
Incentive Levels: This follows the same pattern as the Retail Energy Storage Incentive Program as noted in the section above. For the first 4 hours of a system’s duration, stated incentive levels will be provided at the dollar values listed. This declines to 25% of the dollar value for hours 5 and 6. Finally, there will be no incentive for a duration beyond 6 hours.
Further information on the Bulk Energy Storage Incentive Program, and these updates, is available here.
All info regarding these revisions is courtesy of NYSERDA. You can visit the NYSERDA website for more information about Energy Storage, or send an email to energystorage@nyserda.ny.gov if you have any queries about the program.
If you’re interested in an energy storage system for your home or business, contact YSG Solar today. We take care of the whole process from start to finish so you can see the benefits as soon as possible. Send us an email, or call the office at 212.389.9215 to get started, or just learn a little more about energy storage.
By Shane Croghan
Sources:
https://www.nyserda.ny.gov/All%20Programs/Programs/Energy%20Storage