If you own a solar system, it’s likely that you produce excess energy which is returned back to the grid. In New York City, Con Edison compensates you for this excess energy through a process called Net Metering. With this system, you’re credited at the current retail rate for kilowatt hours sent to the grid by your solar system.
However, things may be changing in 2021. For New Yorkers considering solar, be aware that ConEd will likely be moving away from Net Metering. But to what, we do not know.
What We Know
In support of Reforming the Energy Vision, the New York State Public Service Commission has established a new method of compensating distributed energy resources, like solar power. This Value of Distributed Energy Resources (VDER) or the Value Stack, might replace the current full retail value net metering program.
ConEd’s Value Stack would allow the utility to decide the value of your solar power based on when and where they provide electricity to the grid. Under this program, your solar power will be considerably undervalued.
Compensation for energy under net metering is fairly straightforward—kilowatt hours in exchange for kilowatt hours. The value of your solar is pegged to the retail rate of power. The Value Stack is less predictable due to the multiple factors that make up the calculation, so it’s more difficult to estimate compensation. Therefore, compensation with net metering is, in most cases, higher than the Value Stack. To sum it up – you’ll be getting less bang for your buck with VDER.
It is unclear if ConEd will transition from Net Metering to the Value Stack. They may even propose an entirely different program. This makes the future of solar in NYC a bit murky.
What NYC Homeowners Must Know
The Department of Public Service has extended Phase One Net Metering (full retail value for your solar) until January 1st, 2021. Projects that are completed by January 1, 2021 will lock in the current net metering program for 20 years. Residential solar systems installed after December 31, 2020 will be forced to participate in the Value Stack Program OR potentially something else that has yet to be made public.
One thing we know for sure is that there are changes ahead. The current Net Metering program offered by ConEd makes realizing the savings from solar easy and straightforward. Don’t step into the unknown in 2021 – take charge of your future and go solar now!
Interested in learning more or finding out if your home is eligible for solar? Reach out to BSW at 347.318.4771 or firstname.lastname@example.org.