NY-Sun Initiative Helps New York Consumers Make Strategic Solar Investments 

Program Will Produce Enough Clean Solar Energy to Power Nearly 700,000 New York Homes Annually

Program Expected to Spur $4.4 Billion in Private Investments, and Supports 6,000 Solar Jobs

Program Includes Prevailing Wage Requirements for Larger Solar Projects

ALBANY — In celebration of Earth Week, the New York State Public Service Commission (Commission) today directed the use of surplus NY-Sun program funds for the benefit of low-income customers. The amended NY-Sun program is expected to exceed the statewide goal of 10 GW of distributed solar installations at a lower cost than originally forecast. Today’s decision furthers the Commission’s commitment to reducing energy costs for New York’s consumers and supporting clean energy development efforts. 

“The Commission today opted to provide NYSERDA authority to continue incentivizing distributed solar beyond the statewide 10 GW goal using a portion of expected surplus funds, along with flexibility to adjust incentive levels to respond to market conditions, ensure efficient use of program funds, and to continue to monitor changes in federal energy policy,” said Commission Chair Rory M. Christian. “The modifications we are making today to NY-Sun program operations reflect the demonstrated success of the program’s declining block structure in fostering distributed solar growth in a transparent manner towards a self-sustaining market. With these changes, we will be able to expand our capacity to additional crucial policy matters, including, critically, energy affordability. These changes will provide continuity for this very important program during this incentive phase-out period.”

Based on a review of NY-Sun program performance to date and factoring in updated project cost estimates based on developer-reported data, utility-reported interconnection costs, international cost trends, and other market or policy factors impacting costs, the Commission estimates that the state will be able to achieve its 10 GW goal with an approximately $421 million surplus out of the original total budget of $3.27 billion. To provide continuity in the NY-Sun program, the Commission today approved the continued use of $150 million of the expected surplus budget to incentivize distributed solar beyond 10 GWs statewide, on the condition that such solar projects directly benefit low-income customers. The Commission simultaneously directed that the remainder of the expected surplus be re-allocated to other statewide Clean Energy Fund balances to be used to reduce future collections related to other clean energy programs currently pending before the Commission.  In addition to the up-front incentives provided through NY-Sun, the Commission will continue to support the distributed solar industry through the Value Stack compensation mechanism and the Statewide Solar for All program.

With the action taken today, the NY-Sun program includes a total investment of $3 billion in ratepayer-funded incentives that have supported the successful program over the last ten years, building a mature market resulting from the marked reduction in project costs and incentives. The public investment is expected to spur approximately $4.4 billion in private investment to bring awarded projects to fruition, for a total of $5.9 billion in expected investment over the mid- to late-2020s. An additional six thousand solar jobs have been created across the state, including with the state's first application of prevailing wage requirements for solar projects between one and five megawatts.

Achieving the state's expanded solar goal is expected to generate enough clean electricity per year to power nearly 700,000 additional New York homes, including those in disadvantaged communities. In 2025, Earth Week, a time to focus on environmental action and sustainability, runs from April 19 to April 26.

New York State's Climate Agenda

New York State's climate agenda calls for an affordable and just transition to a clean energy economy that creates family-sustaining jobs, promotes economic growth through green investments, and directs a minimum of 35 percent of the benefits to disadvantaged communities. New York is advancing a suite of efforts to achieve an emissions-free economy by 2050, including in the energy, buildings, transportation, and waste sectors.

Today’s decision may be obtained by going to the Commission Documents section of the Commission’s Web site at www.dps.ny.gov and entering Case Number 21-E-0629 in the input box labeled "Search for Case/Matter Number". Many libraries offer free Internet access. Commission documents may also be obtained from the Commission’s Files Office, 14th floor, Three Empire State Plaza, Albany, NY 12223 (518-474-2500). If you have difficulty understanding English, please call us at 1-800-342-3377 for free language assistance services regarding this press release.