NYSERDA Retail Energy Storage Incentive Program

Summary

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

The Retail Energy Storage Incentive program offers financial incentives for new energy storage projects smaller than 5 MW (AC) that are i) connected behind the customer's electric meter or ii) interconnected directly into the distribution system. 

Eligibility

The energy storage projects must be smaller than 5 MW (AC). 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, the system must include manufacture warranty. 

All electric customers of Investor Owned Utilities (IOUs) who pay the System Benefits Charge (SBC) on their electric bill are eligible for the incentive.  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.

Any customers with demand metered customer, as well as front of the meter storage installed directly on the distribution system are eligible.  Customer sited energy storage (behind the meter) the customer must be enrolled and participate in one of the following - i) distribution utility demand response, ii) have NWA contract,  iii) VDER Value stack tariff, or iv) granular delivery rate tariff (ConEd Rider Q or LIPA's time of use / multiple rate period delivery tariff). 

Following projects are not eligible for the program - i) projects that are installed or interconnected prior to March 11, 2019, ii) projects previously selected under IOU non-wires alternative, and iii) projects that submitted proposal to open a non-wires alternative before March 11, 2019. 

The energy storage system must be able to maintain a minimum of 70% round trip efficiency. 

Program description

The financial incentive is awarded for the size of usable energy storage capacity (kWh AC) of the system. The incentives are designed based on capacity of storage installed in the region tracked through Mega Watt Hours Block (MWh) website. As each capacity of allocated MWh for a region is installed, the incentive will decrease to the lower incentive at $/kWh rate. While there is no limit to the size of the energy storage system, the incentive will only be provided up to 15 MWh per system. 

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. 

Other NYSERDA resources on energy storage:

1. Battery Energy Storage System Guidebook to develop system planning and inspection processes for local communities.