NYSERDA Proposes More Solar Capacity, Reviews Inflation Act Impact
TL/DR –
The New York State Energy Research and Development Authority (NYSERDA) filed a report on the impacts of the federal Inflation Reduction Act on the state’s solar program, NY-Sun. NYSERDA proposed using previous funding to support the generation of an additional 557 MW to 1,254 MW of solar capacity under six different scenarios. Despite expecting the federal IRA to spur increased investment and development in state solar infrastructure, NYSERDA did not propose further reductions in NY-Sun incentives.
New York State’s Solar Program’s Reaction to Federal Inflation Reduction Act
The New York State Energy Research and Development Authority (NYSERDA) reported to the New York State Public Service Commission (PSC) on January 5, 2024, about the effects of the federal Inflation Reduction Act (IRA) on the state’s leading solar program, NY-Sun. The report also includes the agency’s strategy to extend current funding for more distributed solar capacity beyond its 10-gigawatt ambition.
While NYSERDA acknowledges IRA’s potential to stimulate further solar investment statewide, they withheld from suggesting further reductions in NY-Sun incentives. Instead, NYSERDA proposed to use prearranged funding to back 557 MW to 1,254 MW of extra solar capacity. This proposal considers six scenarios, each with varying incremental capacity estimates, based on the nature of low-to-moderate income community solar projects supported and the savings rate offered to subscribers.
Inclusive Community Solar Adder
NYSERDA’s report (download here) points out a growing number of areas where developers can gain both state and federal incentives for qualified projects. Especially, projects at sites with potential presence of hazardous substances as identified by a Phase I environmental site assessment, are eligible for both NY-Sun incentives and the federal “energy communities” tax credit. Often, the criteria to qualify as a brownfield site for this bonus credit is less stringent than under NY-Sun’s landfill/brownfield adder. This presents a new, potentially lucrative option for solar developers of brownfield sites.
NYSERDA may revise NY-Sun Program rules in response to future federal guidance and regulations concerning IRA incentive programs for solar developers, keeping in sync with market conditions and stakeholder feedback. Public responses to NYSERDA’s January 5 report and proposal may be filed with the PSC by following this link and submitting a letter to the attention of Hon. Michelle L. Phillips, Secretary to the Commission.
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