Rooftops Mean Money for Businesses, Condos Under New NY Solar Rates

BRIARCLIFF MANOR, NY — A new rate structure for solar energy in New York could make the value of energy produced by a commercial rooftop system skyrocket. The ruling affects all solar customers across the state, but particularly benefits businesses, co-ops, condos, apartment buildings and not-for-profits in Con Edison territory.

Calling it a huge win for consumers, developers and the environment, John B. Rhodes, President and CEO, NYSERDA said in a statement, "New York’s solar market is thriving...and the state is leading the nation in making it easier and more affordable to use clean, renewable energy systems that reduce our carbon footprint and create clean energy jobs."

The March ruling by the New York Public Service Commission means an increase in solar value of 30-50 percent for commercial customers, says Doug Hertz, president of Westchester-based Sunrise Solar Solutions.

“This is the best news we’ve seen for businesses looking to go solar and monetize their rooftop real estate,” says Hertz. “Con Edison customers will now receive higher credits for the energy they send back to the grid, while the incentives in the area [for installing a system] remain excellent, turning a good opportunity into a great one.”

The PSC's new pricing structure for distributed energy (solar) resources is known as the Value Stack. The Value Stack will begin to replace New York’s less precise net metering structure, in order to support rapid solar development in the state.

“Distributed resources offer tremendous value to the electric grid, but until now these values were not reflected in the energy prices paid to these resources," said Commission Chair Audrey Zibelman. Today’s order will finally give distributed energy resources their due."

The new rate structure, combined with federal and state incentives, means commercial customers could expect double-digit returns, Hertz estimates. As for putting in the solar panels, current incentives would pay for 65-75 percent of the cost.

“Cashing in on your roof has never paid more,” he says. “If you have a Con Edison EL9 or EL8 rate, as most commercial customers do, you stand to gain by this ruling.”