Expanding NY’s Distributed Solar Beyond 10 GW under Inflation Reduction Act

New York PSC Evaluates Solar Generation Expansion Proposal

The New York Public Service Commission (PSC) is reviewing a proposal by the New York State Energy Research and Development Authority (NYSERDA) to extend the NY-Sun Program’s distributed solar generation beyond the existing 10-gigawatt (GW) target.

A report published by NYSERDA on January 5, 2024, reveals that the Inflation Reduction Act of 2022 (IRA) may result in an estimated $421 million surplus for the NY-Sun Program. NYSERDA indicates that there is uncertainty in the solar market, national policy, and the economy, despite the program end date being seven years away.

NYSERDA proposes utilizing approximately $75 million of the surplus to address the predicted NY-Sun shortfall, leaving around $346 million to boost solar capacity beyond the 10-GW target.

The report examines potential use of the surplus, including enhancing the Inclusive Community Solar Adder for community solar projects and increasing procurement under the Statewide Solar for All programs. Projected solar capacity varies from 557 megawatts (MW) to 1,254 MW across these scenarios.

NYSERDA’s requests include PSC approval to use the NY-Sun budget for extended solar deployment, cover the $75 million budget shortfall, allocate surplus funds within the Solar Energy Equity Framework (SEEF) to community solar projects serving disadvantaged communities, and incorporate certain residential customers in the SEEF’s 40% minimum capacity requirement.

The notice of these requests was published in the New York State Register, with comments due by April 29, 2024. Interested parties can share their views on the surplus usage and contingency plans for NY-Sun if the surplus doesn’t materialize.

The PSC is anticipated to make a decision by late summer 2024, with updates on the NY-Sun program expected before the year ends.