Net metering in New York might be your ticket to a greener, more cost-effective future. Recently, New York transitioned its net metering policy into a new rate method called Value of Distributed Energy Resources (VDER), or the Value Stack, for commercial and industrial customers. VDER is a more accurate compensation method for larger companies and applies to any business generating distributed energy resources (DERs). While net metering still exists, for systems installed before March 17, 2017, these older systems are "grandfathered" into the standard net metering program. However, if your newer system was installed after March 17, 2017, these are subject to the Value Stack tariff.
Let’s dive into net metering and uncover how this system works in the Empire State.
The Basics: What is Net Metering?
Net metering (and VDER) is a billing mechanism that allows you to send excess energy from your solar panels back to the grid. When you generate excess electricity, your energy doesn’t just disappear. Instead, it’s returned to the grid, and in return for that electricity, you earn credits for the energy you don’t use. These credits can be used to offset the cost of the electricity you draw from the grid when your system isn’t producing enough power, like during evenings or on days with gloomy weather.
How Does Net Metering Work in New York?
Let’s say you’re a building owner in Brooklyn with a solar panel system on top of your roof. When the sun is shining, your panels work overtime, generating more electricity than you use. Thanks to net metering, that surplus energy doesn’t just go away; it gets sent back to the grid, and you get credits on your utility bill.
But that’s not all. If it’s a cloudy day and your solar panels aren’t generating electricity, those credits come into play, reducing your utility bill. Essentially, you’re exchanging excess energy production for credits to lower your monthly bill by the next billing cycle.
The Benefits of Net Metering in New York
New York’s net metering policies encourage solar energy adoption and support sustainable practices. Here’s what you need to know:
- Generous Credits: New York’s net metering system offers one-to-one credits*, meaning you get the same rate for the energy you supply to the grid as you pay for the energy you draw from it. It’s a fair trade that keeps your wallet happy. *There is now a Customer Benefit Contribution (CBC) charge for systems installed after January 1, 2022.
- Community Solar: If rooftop solar is not an option for you, New York has community solar programs, allowing you to invest in a shared solar project and benefit from net metering without needing an installation on your roof.
- Sustainability Goals: New York is all about clean energy. The state’s policies are crafted to help meet ambitious sustainability targets, making net metering a key player in the quest for a cleaner, greener future.
Ready to Dive In?
Diving into the renewable energy pool offers a host of incentives that can be used to support your transition—net metering credits provide an excellent opportunity to save money while contributing to a sustainable future, paving the way for more innovative commercial energy solutions in New York.
When you partner with Catalyst Power, our services include:
- Analyzing whether the net metering program creates value for your specific situation.
- Coordinating the installation and interconnection processes, making it easier for you to participate in the program.
- Evaluating your solar output potential against your energy usage patterns.
- Assessing on-site consumption versus energy exported to the grid.
Catalyst Power can answer any questions you may have about how net metering and VDER work for you. We have an experienced team of Energy Experts who are willing to help!
