Energy Storage Incentives in New York

At present, New York ranks 10th on the list of pioneering solar energy states. According to the Solar Energy Industries Association (SEIA), the state has 2,311.15 MW of installed solar capacity. It is enough to provide electricity to 397,809 homes. Furthermore, the solar energy sector offers 10,740 jobs across the state.

When it comes to adopting and promoting clean energy sources, the state has pretty aggressive energy and climate goals in the country. As per the Clean Energy standards:

  • It will be a mandate to get 50% of energy from renewable sources by 2030
  • Using the year 1990 as a baseline, New York aims at a 40% reduction in the greenhouse gas emission by 2030
  • By 2040, the state aims to generate 100% carbon-free electricity

Looking at the level of the goals set by the state, storing clean energy will play a crucial role in the state’s efforts to reduce carbon emissions and become energy-sensitive. The New York State Energy Research and Development Authority (NYSERDA) conducts several programs that help lower a home or business’s energy bills. Among a list of programs that run across the state, three play a pivotal role: Energy Storage, Community Energy Engagement, and Energy Audit Programs. Learn more here.

In conjunction with the nation-wide incentive programs such as NET metering and Investment Tax Credit (ITC), NYSERDA has come up with an incentivization for clean energy storage. The Retail Energy Storage Incentive Program provides financial support for new grid-connected energy storage systems. Under the program, the projects, and contractors will be eligible for storage incentives if:

  • The storage system has up to 5MWh of alternating current (AC) power
  • It has a monetized value under an Investor-Owned Utility (IOU) or Long Island Power Authority (LIPA/ PSEG LI) tariff in the form of bill savings and energy credits. (inclusive of including delivery charges or the Value of Distributed Energy Resources (VDER or Value Stack) tariffs)
  • The storage is in connection with a customer’s electric meter or directly into the distribution system


The Retail Energy Storage Incentive Program works by converting a participant’s storage system into a virtual powerhouse for times of need. The virtual ower houses provide energy to the local utility grid during peak energy consumption hours, especially during summers. The participants of this program get lucrative incentives for selling the produce of their renewable energy projects. According to PSEG (Long Island):

“During the Energy Storage Rewards Program period from May 1 to September 30, if we forecast that the following day’s power needs will be near the grid’s peak capacity, we may schedule an “event” to make use of the clean, renewable power produced by solar PV customers. There is a maximum 10 events per season, but, typically there are fewer, and each event only lasts a few hours.”


The Energy Storage Program is for both Private-owned Projects and contractors. Incentives for energy storage systems, except for single-family residential projects are available under the program. A network of contractors who connect directly with the customer is a significant part of the program. The contractor, who is a participant for the program, will be responsible for providing the incentives to customers.

The following is a list of projects that will not be eligible for the Retail Energy Storage incentive Program:

  • Projects installed before NYSERDA approved the project application.
  • The projects that receive permission to operate (PTO) from a utility before March 11, 2019.
  • The projects previously selected under an IOU Non-Wires Alternative, and projects that submitted a proposal to an open NWA before March 11, 2019, and are pending decision or negotiation.
  • Projects owned by IOUs, electric utilities, or the New York Power Authority.
  • For projects that receive energy storage compensation under the Clean Energy Standard through an NYSERDA-awarded Renewable Energy Certificate (REC) for a paired renewable and storage system.
  • Projects that receive NYSERDA Bulk Storage Incentive or fall under an IOU Bulk Dispatch Rights contract.

Incentive structure:

The incentives of the Retail Energy Storage program are accessible on a first-come, first-serve basis. It follows the MWh Block approach that allocates ‘blocks’ to the specific regions of the state and assigns incentives per block. Furthermore, the calculation of a renewable energy project’s incentivization will depend on the amount of usable installed energy storage capacity in KW hours. If you want to learn about it in detail, go through this guide.

After enrolling in the program, all projects will go through a quality assurance inspection process, A verification from NYSERDA will mean that the project is ready to reap the incentives as follows:

A stated incentive based on the system’s total MWh in the first 4 hours and decline to 25% for hours 5 and 6. There will be no incentives after the 6th hour. Also, the maximum incentive payment a project may receive is 15KWh.

As of now, the incentive is $250 per kWh of storage capacity, but that will step down over time as the program budget exhausts. Follow NYSERDA’s dashboard for the latest information on incentive budgets.

The world is going Solar, are you?

The environmental impacts of non-renewable sources of energy like coal and petroleum are heinous and often irreversible. Adopting green energy sources like solar, wind, and geothermal, among many others, is one way to save the planet from choking in the greenhouse gases that rise every single day.

It is the collective responsibility of the young and old to come together and advocate for clean energy. Also, when you learn about a new incentive or rebate program, make good use of it and become a better citizen of the world. Furthermore, if you want to learn more about energy storage incentive programs across the country, here’s a blog.