Dive Brief:
- The New York State Energy Research and Development Authority (NYSERDA) is seeking permission to spend $960.6 million on incentives aimed at bringing 3,000 MW of photovoltaic capacity online in the state.
- The proposal would extend the NY-Sun Initiative from 2015 when it is set to expire through 2023, according to a filing with the New York Public Service Commission.
- The $108 million in annual funding would come from a renewable portfolio standard surcharge on electric bills.
- NYSERDA proposes to reduce solar incentives as the state comes closer to reaching its goals. “Based on the current growth rate of the industry, the rate of decline of system installed costs, and demand on incentives, NYSERDA believes it will be possible to eliminate the RPS-funded PV incentives within the timeframe of NY-Sun, and in some regions of the state sooner than others,” the state agency said.
Dive Insight:
New York may not have the palm trees and bright desert skies found in the Southwest, but NYSERDA believes the state has major solar potential. “Industry convergence is bringing new competitors and creating new value propositions, with the potential to redefine how consumers view PV systems and interact with their providers,” NYSERDA said. “The industry is well positioned for growth.”
If New York can add 3,000 MW of solar, how much more fossil-fueled generation will be needed in the state? And what does it say about solar's market potential across other parts of the Northeast where electric rates are relatively high?
