PSEG Long Island- Commercial Solar PV Feed-in Tariff

October 30, 2023


NOTE: The FIT III program is closed and no longer accepting new applications. Any inquiries may be submitted to Power Markets at

PSEG Long Island’s Commercial Solar Feed-in Tariff (FIT) program supports the development of solar energy for commercial sector in Long Island. The program is designed as part of Long Island Power Authority’s (LIPA) goal to add 400 MW of new renewable energy generation by 2018. The commercial solar FIT program has a goal to install 20 MW of solar energy in its third round of solicitation. 


All new non-residential solar PV projects that have a minimum output of 200kW (AC) and maximum output less than 1,000kW (AC) are eligible to participate in the program. The solar PV project must be placed on non-residential customer’s rooftop or carport that is used to shelter motor vehicles, and be interconnected to the LIPA’s distribution system. The applicant does not have to be a PSEG LIPA’s electric customer to participate in the program, however, the system must be installed within LIPA’s service territory. 

Net metered systems, systems that are already interconnected, or projects that have received other incentives from LIPA are not eligible for the program. 

Program description

The program is designed as a “buy-all, sell-all” where all the output from the solar PV system is exported to the grid. In exchange, the program provides fixed price ($/kWh) for all the output generated by the system for the period of 20 years under a power purchase agreement (PPA). The fixed purchase price will be determined through a Clearing Price Auction. 

Market Auction

Interested applicants must submit an application for the Clearing Price Auction including a bid price that is less than the bid cap price of $0.1649/kWh. Applications with a bid price greater than the cap price will be discarded. The bids will be ranked generally based on- i) lowest evaluation bid price, ii) smallest proposed project size, and iii) earliest submittal time stamp until the projects add up to 20 MW. The price ($/kWh) at which the capacity reaches 20 MW will be set as the market clearing price. Each successful applicant will receive a fixed price contract at which the auction cleared. 

Program Overview

Implementing Sector: Utility
Category: Financial Incentive
State: New York
Incentive Type: Feed-in Tariff
Web Site:
Administrator: PSEG
Start Date:
Eligible Renewable/Other Technologies:
  • Solar Photovoltaics
Incentive Amount: Fixed price ($/kWh) will be paid for a period of 20 years based on the Clearing Price determined through the Clearing Price Auction.
Maximum Incentive: The bid price cap is set at $0.1649/kWh. Applications with price greater than the bid cap will not be considered for auction.
Eligible System Size: From 200 kW up to 1,000 kW
Duration: 20 years
Equipment Requirements: Projects must meet the Smart Grid Small Generator Interconnection Procedure (Smart Grid SGIP)
Installation Requirements: Must be connected directly to the distribution system with a dedicated meter.
Must be installed on non-residential customer's rooftop or carport
Ownership of Renewable Energy Credits: All the energy, capacity, ancillary, and environmental credits will be owned by PSEG Long Island


This program has 1 incentives
Technologies: Solar Photovoltaics
Sectors: Commercial, Industrial, Agricultural
Parameters: The incentive has a minimum of 0.16 $/kWh (20 years), The system has a minimum of 1.00 MW, The system has a maximum of 200.00 kW


Name: Stephen Cantore
Organization: PSEG Long Island
Address: 175 E. Old Country Road
Hicksville NY 11801

This information is sourced from DSIRE; the most comprehensive source of information on incentives and policies that support renewables and energy efficiency in the United States. Established in 1995, DSIRE is operated by the N.C. Clean Energy Technology Center at N.C. State University.