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New York faces some of the nation’s highest electricity rates, and they’re on the rise. The simplest solution? Install solar panels. They can slash your electricity bills and provide clean, renewable energy for your home. However, navigating the solar installation process can be daunting.
That’s where we step in. We’ve laid out everything you need to know about going solar to help you determine if it’s the right investment for you.
New York’s Key Solar Incentives: A Breakdown
New York’s Shift from Net Metering
Net metering, established in New York in 1997, once hailed as revolutionary, now faces challenges due to its impact on utilities and the grid. To address these issues, the state’s Public Service Commission (PSC) introduced the Value of Distributed Energy Resources (VDER), also known as the Value Stack.
VDER aims to accurately reflect the costs and benefits of home solar energy, ensuring fair billing for excess solar energy and avoiding additional costs for non-solar homeowners. Unlike net metering, VDER operates on a different rate structure designed for more balanced energy distribution.
To facilitate the transition from net metering to VDER, the PSC has introduced transitional programs like “Phase One plus CBC”. Homeowners in New York now have the choice to continue with transitional net metering or opt into the VDER program.
VDER: New York’s Alternative to Net Metering
Understanding New York’s Net Metering Program
New York’s current net metering program operates straightforwardly: solar panels installed on your roof generate electricity primarily for your home’s use. Any excess energy produced flows back into the grid, earning you kilowatt-hour (kWh) credits on your electricity bill. These credits offset future kWh usage from the grid.
For example, if your home uses 100 kWh from the utility but your solar system sends 25 kWh back to the grid, you’re billed for only 75 kWh at month’s end.
Key Features
Customer Benefit Contribution (CBC) Charge and Term Length
Solar installations after January 1, 2022, participate in net metering for 20 years. Post-term, you’ll adopt the prevailing solar billing structure.
Electricity Rates
Choose and stick with your preferred electricity rate plan throughout the 20-year term, including options like standard, Time of Use, or standby rates offered by utilities.
Credit Rollover
Unused net metering credits roll over from one billing period to the next within the year but expire without payment at the end of the 20-year term.
Considering VDER Over Net Metering
New York solar adopters can opt for the Value of Distributed Energy Resources (VDER) program instead of net metering. Under VDER, excess solar energy is compensated based on the Value Stack rate, incorporating factors like wholesale energy rates, grid demand reduction, utility upgrade deferral, and environmental benefits.
While the Value Stack rate typically falls below retail electricity rates, residential VDER participants only pay half of the CBC charge. Deciding between net metering and VDER hinges on qualifying for a favorable Value Stack rate, balancing potential savings against program complexities.
In summary, net metering often offers more straightforward savings on electricity bills, while VDER’s benefits depend on specific rate qualifications and tolerance for program intricacies.
Navigating the Solar Interconnection Process
Installing solar panels isn’t just about placing them and flipping a switch. There’s paperwork and time involved to ensure everything runs safely. This process, known as interconnection, is mainly managed by your solar installer.
The timeline from application to activation can vary significantly, ranging from three weeks to three months.
Step-by-Step Guide
Step 1: Application Filing
Your solar installer handles the interconnection application, which includes a signed contract, system description, design details, and product specifications.
Step 2: Permit Acquisition
Securing permits is typically the lengthiest part. Requirements vary by location, so the timeline can vary greatly – from one to six weeks – before installation can commence.
Step 3: System Installation
Once permits are in hand, installation begins. This is surprisingly the quickest step, typically taking only 6 hours for residential setups and up to 3 days for more complex installations.
Step 4: Meter Setup
After installation, your installer arranges for the installation of new electricity meters required for net metering participation.
Step 5: System Testing
Before activation, rigorous testing and inspection of the solar panels are conducted to comply with New York State’s testing protocols.
Step 6: Final Approval
Upon successful testing, your installer notifies the completion, and you receive written acceptance within five business days. Your solar panels are now ready to generate clean, renewable energy for your home!
Is Solar Worth It in New York?
Absolutely! Going solar in New York makes a lot of financial sense, especially now.
Here’s why:
Net Energy Metering Benefits
During the transition period, you receive credits at the full-retail rate for surplus energy fed back into the grid.
Generous Incentives
New York offers two significant incentives for solar installations. Besides the federal solar tax credit of 30%, homeowners can benefit from the New York State solar tax credit, potentially saving up to $5,000.
NY-SUN Incentive
This program, offered by NYSERDA in collaboration with utilities, provides additional incentives. Combined with other incentives, New Yorkers can potentially save over $10,000.
Quick Payback
With utility bill savings and robust incentive programs, the payback period for a solar investment can be less than 6 years, even factoring in the Customer Benefit Contribution (CBC) charge.
Explore your potential savings with our solar calculator and connect with trusted local installers to kickstart your solar project today.
