NYSERDA Residential and Retail Energy Storage Incentive Program

In December 2018, the New York Public Service Commission (PSC) adopted a 1,500 MW energy storage target by 2025, and a 3,000 MW target (later updated to 6,000 MW) by 2030. As a part of the order, the PSC directed NYSERDA to develop incentives designed to meet the statewide energy storage goals. 

The Residential and Retail Energy Storage Incentives program offers fixed-rate financial incentives for new grid-connected residential and commercial customers to install standalone energy storage or systems paired with a new or existing on-site renewable generation. Incentive applications will be accepted until the earlier of December 31, 2030, or until funds are fully committed. 

Eligibility

The energy storage projects must be smaller than 25 kWh (AC) for residential and may be up to 5 MW for retail. Retail projects must be either located behind a customer’s electric meter or interconnected directly to the distribution network, and must provide value to a customer under an IOU rate, such as offsetting demand charges, participating in a utility demand response program, or receiving compensation under the VDER tariff. Any energy storage technology including chemical, thermal, or mechanical systems are eligible. These systems can be stand alone projects, or can be paired with another distributed energy resource technology system such as solar PV. Experimental, beta or prototype equipment is not eligible. 

Projects located in Long Island Power Authority's territory may be eligible for incentive in Q3 2019 subject to the availability of Regional Greenhouse Gas Initiative (RGGI) funds.

Following projects are not eligible for the program - i) projects that have executed a contract to participate in a non-wires alternative project on or before February 14, 2025, ii) projects previously awarded a NYSERDA retail incentive and iii) projects owned by IOUs, iv) projects in which the energy storage system is compensated under the Clean Energy Standard, v) projects that receive a Bulk Storage incentive or are awarded an IOU dispatch rights contract, and vi) behind-the-meter standalone energy storage projects serving retail, non-demand metered customers. 

Systems must be designed and installed by participating contractors and builders who have entered into Residential and Retail Energy Storage Program Participation Agreements and are in good standing with the program. 

Program description

The incentives are structured as a fixed-rate incentive based on the storage systems capacity, measured in kWh. The incentives are designed based on capacity of storage installed in the region, tracked through separate MegaWatt Hours Block (MWh) websites for residential and retail projects. As each capacity of allocated MWh for a region is installed, the incentive will decrease to a lower incentive at $/kWh rate.

The NYSERDA participating project contractor must submit the application, and will be awarded directly to the contractor to offset the cost of the system. Interested contractors to participate in the program can apply at NYSERDA website. 

The energy storage system must be installed permanently and must carry at least 10 year manufacture warranty.