PSEG Long Island- Fuel Cell Resource Feed-in Tariff

July 14, 2022


NOTE: The FIT IV program is closed and no longer accepting new applications. Project information will be added as PPAs are executed. 

The PSEG Long Island Fuel Cell Resource Feed-in Tariff program provides formula rate for all the electricity generated over 20 year term by the eligible fuel cell system. The program is part of Long Island Power Authority (LIPA) goal to install 400 MW of renewable generation by 2018. The program has a goal to install 40 MW of fuel cell under fourth round of solicitation of the program. 


To be eligible the fuel cell systems must have minimum output of 1,000 kW and maximum output less than 20,000 kW. The project must be attached to the system or within a beneficial area determined by the PSEG. Fuel Cell systems that use less than 100% renewable energy sources are also eligible to participate. 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.

Projects that are already interconnected, projects that received other incentives from LIPA, and projects that are in Smart Grid SGIP queue, or NYISO interconnection queues are not eligible to participate. 

Program description

The program is designed as a “buy-all, sell-all” where all the program will purchase all of the electricity generated by the fuel cell system at a fixed price plus a variable cost of fuel determined by a fixed heat rate multiplied by a natural gas index price for a fixed term. The rate will be determined through a bidding process. 

Interested applicants must submit an application which includes the fixed price component, heat rate factor, and gas price index selection. The bid price for the project will be calculated based on the rate formula (provided below) and 20 year levelized natural gas price forecast. 

Please visit the program website for more information. 

Program Overview

Implementing Sector: Utility
Category: Financial Incentive
State: New York
Incentive Type: Feed-in Tariff
Web Site:
Administrator: PSEG Long Island
Start Date:
Eligible Renewable/Other Technologies:
  • Fuel Cells using Non-Renewable Fuels
  • Fuel Cells using Renewable Fuels
Incentive Amount: Price determined through bidding process
Eligible System Size: From 1,000 kW to 20,000 kW
Duration: 20 years
Equipment Requirements: System must be new and not currently interconnected or in queue
Installation Requirements: Can be interconnected at transmission or distribution level
Ownership of Renewable Energy Credits: All the energy, capacity, ancillary, and environmental credits will be owned by PSEG Long Island


Name: Stephen Cantore
Organization: Long Island Power Authority
Address: 175 East Old Country Road
Hicksville NY 11801
Phone: (516) 545-4820

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.