New York State is leading the charge in clean energy initiatives, with ambitious goals for battery storage deployment. As the state aims to achieve 6 GW of energy storage by 2030, a combination of incentives and strategic planning creates a landscape ripe with opportunities for commercial business owners.
According to the U.S. Energy Information Administration (EIA), battery storage capacity has grown significantly and is expected to increase by 2025. Let’s explore how battery storage is gaining traction in New York and how your business can participate.
The Incentive Landscape
According to the New York State Energy Research and Development Authority (NYSERDA), New York's battery storage incentives are structured to encourage adoption across different regions and sectors. The state is divided into several regions, each with its own set of incentives:
- New York City
- Westchester
- Rest of State (ROS)
- Long Island
The "Rest of State" region offers a higher incentive rate but has a lower block capacity. Block capacity refers to the megawatts (MW) of solar capacity designated for specific regions. “Each region is then broken into blocks that are designated an allocation of MWh eligible for incentives. Incentives remain available until all blocks within a region are fully subscribed,” as mentioned by NYSERDA.
For ROS, this creates a unique dynamic where projects in less densely populated areas may receive more generous support. Still, the overall number of projects that can benefit from this incentive is limited. Potential adopters must act quickly before funding runs out!
Commercial Opportunities and Challenges
Earlier this year, Canary Media reported that the most solar-ready places created a more predictable and cheap daily battery charging pattern. For those hosting solar, battery storage increases your chances of participating in more sustainable projects.
Commercial battery installations can reach up to 5 MWh in capacity today, indicating significant potential for larger-scale energy management. However, this also suggests that there may be a rush for the limited number of projects available throughout the state. With ROS hosting less than half of New York City’s block capacity, the competition is likely to be fierce, and project location plays a crucial role in acceptance or rejection.
Key Factors for Project Approval
Hosting Capacity: Projects must be situated in areas with sufficient grid capacity to accommodate new energy resources. For instance, Con Edison has created hosting capacity maps to identify service area territories!
Grid Decongestion Needs: Batteries in areas that can help alleviate grid congestion are more likely to be approved. This is important because a decongested grid means more efficient renewable energy integration and reliability, and with more reliability comes fewer power outages disrupting daily business operations.
Strategic Placement: The NYSERDA Retail Storage Incentive program prioritizes projects that provide value to the customer under utility rates or the state's value of distributed energy resources (VDER).
The Rush for Projects
With limited capacity in each region's incentive blocks, potential adopters must act swiftly. Simply signing a lease with a provider like Catalyst Power is just the first step – it's essentially throwing your hat into the ring of success. Your ability to participate will depend on a combination of factors, including project location, system design, and timing.
Regional Highlights
New York City and Brooklyn/Queens
Con Edison offers special incentives for battery energy storage systems in eligible Brooklyn and Queens neighborhoods. This targeted approach addresses specific grid challenges in these areas. Deadlines stretch into 2026, making it imperative to act now to take full advantage of your opportunities (while they last).
Looking Ahead
As New York progresses towards its 6 GW energy storage goal, we can expect to see diverse projects emerge across the state. Battery storage is set to play a crucial role in New York's energy future.
The path forward is clear: those looking to join in on New York's battery storage potential must act decisively, choose their locations wisely, and be prepared for a competitive landscape. As the state continues to refine its incentives and regulations, businesses in New York are building an increasingly resilient, sustainable, and long-term future. By partnering with Catalyst Power for your energy storage needs, you can be a part of that clean energy transition.
