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. 

net metering United States map
Map of US States and their net metering policies. 38 states plus Washington, D.C. and Puerto Rico have mandatory net metering rules in place.

For New Yorkers considering solar, be aware that ConEd will likely be moving away from Net Metering. But to what, we do not know.

Future Alternatives to Net Metering

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

On July 17th 2020, NYSERDA announced that Phase One Net Metering will be available for projects interconnected before January 1, 2022. This reflects a one-year delay in the planned implementation due to the impact of the COVID-19 pandemic. Projects that qualify for Phase One Net Metering will continue to receive it for twenty years post interconnection.

At this point in time, projects interconnected on or after January 1, 2022 will receive net metering but will be charged a monthly Customer Benefit Contribution (CBC) based on the DC nameplate rating of the solar system. The CBC is expected to be initially calculated at between $0.69-$1.09/KW DC monthly depending on service class and location, and will appear as a charge on the customer’s electric bill. For residential customers considering a solar installation, the Staff proposed CBC would reduce potential bill savings by over 20%.

One thing we’re certain of 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 after 2022 – take charge of your future and go solar now!

Questions? Reach out to our team at 347-318-4771 or schedule your free consultation here.

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