Gov. Andrew M. Cuomo, D-N.Y., has authorized up to $1 billion for NY-Sun, ensuring funding through 2023. The NY-Sun initiative provides long-term funding to boost existing solar businesses and attract new investments to New York from global solar companies.
Along with the governor's announcement, the New York Public Service Commission (PSC) also approved an order to change the New York State Energy Research and Development Authority's (NYSERDA) current incentive-based solar programs by transitioning from government-sponsored energy programs to market-based financing for the solar sector.
The PSC order approves a previously proposed ‘MW block’ incentive structure that allocates MWs to specific regions of the state, breaks those regional MW targets into blocks to which incentives are assigned and awards incentives based upon the block in effect at the time.
This new structure will provide allocations on a regional basis in three categories: residential PV projects up to 25 kW, non-residential PV projects up to 200 kW and systems greater than 200 kW. The allocations will be based on historic demand, market potential, installed cost per watt and equity. As the blocks are fulfilled, incentives will decline according to market rates.
‘This $1 billion investment underscores New York's commitment to growing the clean energy economy,’ Cuomo says in a statement. ‘By providing long-term funding certainty, the state is attracting private-sector investment, creating new economic opportunities and supporting sustainable development.’
The new funding commitment also provides $3.5 million for a consumer education effort on the benefits of PV systems and related issues and technologies, such as direct ownership versus leases, power purchase agreements, community solar and energy storage.
Also, NYSERDA will more than double the proposed allocation for the Long Island region from $28 million to $60 million, increase the maximum size of the PV system eligible for incentives up to 200 kW and will partner with PSEG Long Island to locally implement the statewide NY-Sun program.