New
York is making headlines for its bold moves to restructure its distribution grid
and utilities through the Reforming the
Energy Vision (REV) process. And as the details of this ambitious multi-year
process are hammered out, the state is making it clear that distributed solar will continue to
move forward under existing policies.
In
the order, NYSPC references previous rulings which find that net metering should
not be put on hold until a successor program can be implemented. This decision
was spurred by a petition from Orange and Rockland Utilities, which warned that
it was close to a program cap of 6% of load and requested to stop accepting
applications when that level was reached.
Despite
the language about a successor program, NYPSC has indicated a preference for not
only keeping but expanding a form of net metering during the REV
process.
“The
convention of net metering has proven a very successful tool to support the
growth of the solar industry, and Staff recommends that it continue to be used,”
noted NYPSC staff in a REV white paper issued in July.
“Further,
a bill-crediting transactional mechanism, similar to that used in net metering,
should be considered for distributed energy resources, beyond those to which net
metering already applies, that transact with the system either through actions
that respond to DSP requests for service, or through the ability to inject power
into the system.”
However,
it also indicated that the valuation would be different. “The level of
compensation should be more accurately defined for larger projects,” stated
NYPSC staff. “The current convention of crediting at the average retail rate may
be either too little or too much based on the nature of the resource and its
location.”
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