New York Solar Energy and Net Metering
There are many benefits to switching, even partially, to solar energy in New York. It helps the planet and ensures a better future for us all, but there are also immediate benefits to businesses and residents. One of those benefits is net metering.
What is net metering?
Net metering is a billing arrangement between utility companies and their customers who generate electricity from renewable resources, like solar panels. Depending on weather and energy usage, people or businesses using solar panels can generate more electricity than they use. Under a net metering arrangement, those customers can sell their excess electricity back to the utility company in the form of credits to offset future energy bills.
Let’s look at how net metering helps customers use solar panels in New York.
Energy Credits at the Retail Rate
Whenever a utility company or government entity offers energy credits, there is always the question of how much those credits are worth. In New York, the credits are applied to your electricity bill at the retail rate. That means they offset your electricity bill by the same amount if you were paying for it from the utility company. Those credits then stay available for use for 12 months from the date the credit was issued.
Community Net Metering
New York also offers net metering to customers who are participating in a community solar program. Everyone in the community solar program shares the net metering credits to reduce their energy bills. In New York, this option is available to commercial, industrial, and residential customers, including non-profit organizations and low-income households. Community solar is already a more affordable option to transition to clean energy, so the addition of net metering makes it even more attractive to customers.
Solar Energy Incentives in New York
The New York State Energy Research and Development Authority (NYSERDA) administers the program that includes net metering credits. NYSERDA is just one part of New York’s efforts to transition to cleaner and more sustainable energy systems. New York has further policies to support the growth of renewable energy, including the Clean Energy Standard (CES) and the Value of Distributed Energy Resources (VDER). These policies provide additional financial incentives for customers to start switching to green energy.