New York Governor Andrew M. Cuomo recently announced $55 million for energy storage, including commercial and residential storage projects, on Long Island. This program will be launched with an initial rollout of nearly $15 million in incentives from the New York State Energy Research and Development Authority (NYSERDA). Energy storage projects supported by this Long Island initiative will advance progress toward achieving New York's target of 3,000MW of energy storage deployed by 2030 — the equivalent to powering 40% of New York's homes. The announcement supports Governor Cuomo's Green New Deal, a clean energy jobs agenda putting New York on a path to carbon neutrality.
The $15 million committed is immediately available to Long Island residents and businesses for commercial and residential projects through NYSERDA's Retail Energy Storage Incentive Program. The remainder of the funds, totaling approximately $55 million, will be allocated within the next three to five years and targeted in a manner to drive down costs and scale up the market for these clean energy technologies. The incentives will support energy storage installed at customer sites for standalone systems or systems paired with solar.
As renewable energy resources, such as wind and solar, increase across the state, energy storage will help enhance the efficiency of the electric grid to maximize the benefits of these renewable energy resources. Energy storage systems will also enable New York to meet its peak power needs while lessening the reliance on older, less efficient fossil-fuel generating plants.
Funding is currently available in the following two categories:
1. Commercial Incentives
NYSERDA's Retail Energy Storage Incentive Program will support new grid-connected energy storage systems up to 5MW of AC connection located either with load behind-the-meter or connected directly to the distribution system. The first block incentive will offer $250 per (kWh of energy storage installed. Eligible energy storage systems include chemical, thermal, or mechanical systems compensated under a Public Service Electric and Gas Long Island (PSEG-LI) tariff or load relief program. Eligible systems may be installed alone or paired with on-site generation like solar.
2. Residential Incentives
NYSERDA and PSEG-LI are also jointly launching a residential solar-plus-energy storage program that provides new projects in Long Island with an upfront storage incentive through NYSERDA's NY-Sun Program as well as additional compensation through PSEG-LI's Dynamic Load Management (DLM) tariff. The DLM tariff pays customers to reduce the amount of electricity used from the electric grid during hours when the demand for power is highest. NY-Sun will initially release two incentive blocks for new residential solar-plus-storage systems beginning at $250 per kWh of installed energy storage and then declining to $200 per kWh in the second block.
For more information, visit www.governor.ny.gov