The Value Stack

In support of Reforming the Energy VisionLink opens in new window - close new window to return to this page., the New York State Public Service Commission established a mechanism to transition to a new way to compensate distributed energy resources (DER), like solar power. This mechanism, called the Value of Distributed Energy Resources (VDER) or the Value Stack, replaces net energy metering (net metering or NEM).

VDER compensates projects based on when and where they provide electricity to the grid. To determine a project's revenue under VDER, use the Solar Value Stack Calculator. The calculator combines the wholesale price of energy with the distinct elements of DER that benefit the grid: the avoided carbon emissions, the cost savings to customers and utilities, and other savings from avoiding expensive capital investments.

New Value Stack Order

On April 18, 2019, New York’s Department of Public Service released an updated Value Stack Order [PDF]. The Order goes into effect immediately, and provides many significant improvements to the Value Stack, including

  • Projects under 750kW AC that exclusively serve a host load will have a choice of Value Stack or Phase One Net Metering
  • The Demand Reduction Value (DRV) is now based on a fixed window of peak hours
  • Projects will lock in their DRV rate ($/kW) for 10 years
  • The Market Transition Credit (MTC) for Community Distributed Generation (CDG) projects is sunsetting
  • Community Distributed Generation projects in National Grid, NYSEG, RG&E, and ConEd territories will be eligible for a Community Credit in place of an MTC. CDG projects will receive both the Community Credit and the DRV on the entire project output, regardless of customer makeup (including master-metered accounts that serve residential tenants)
  • The Community Adder is a new incentive available for CDG projects in Orange & Rockland (O&R) and Central Hudson, that did not qualify for an MTC. NY-Sun is in the process of developing an administrative process for the Community Adder

Value Stack Resources


Updated Value Stack Order (4/18/2019) [PDF]

Order on Value Stack Eligibility Expansion (9/12/2018) [PDF]

Implementation Order (9/14/2017) [PDF]

Original Value Stack Order (3/9/2017) [PDF]


Value Stack Calculator Training (6/6/2019) Webinar Recording[mp4]

Value Stack Calculator Training (6/6/2019) Presentation Slides[PDF]

Updated Value Stack Overview (4/25/2019) Webinar Recording[mp4]

Updated Value Stack Overview (4/25/2019) Presentation Slides[PDF]

VDER and Phase 1 Implementation Order Overview (10/13/2017) [PDF]

Frequently Asked Questions

We’ve compiled answers to some of the most common questions on the Value Stack below, but if you have others, email us at

FAQs About VDER (Revised 6.23.2017) [PDF]

Solar Value Stack Calculator

Use our Solar Value Stack Calculator to estimate compensation for your solar projects. The Calculator was updated to Revision 2.2 on 7/17/2019.

Value Stack on Long Island

The Long Island Power Authority (LIPA) has approved a version of VDER for customers of PSEG-Long Island. LIPA’s tariff documentLink opens in new window - close new window to return to this page. contains the relevant details. Please visit PSEG’s VDER websiteLink opens in new window - close new window to return to this page. for more details and Long Island–specific resources. The Solar Value Stack Calculator has been revised to include projects in PSEG-Long Island’s service territory.

Long Island’s Value Stack Order is largely similar to the rest of the State’s Value Stack program. The most important differences are:

  • Mass market (residential, and non-demand commercial) off-takers of Community Distributed Generation (CDG) projects will receive volumetric crediting rather than monetary crediting through the value stack
  • Projects receiving ICAP Alternative 3 will have their compensation based on grid injections over the top 10 hours of annual peak utility demand, rather than the single top hour.

Tranches for Community Distributed Generation Projects

Allocated Capacity per Tranche (MW AC)

Tranche ConEd NYSEG Orange & Rockland Central Hudson National Grid RG&E
27 of 350 MW 54 of 125 MW N/A N/A 273 of 525 MW 25 of 80 MW
MTC - Tranche
8 of 136 MW
59 of 62MW
20 of 23 MW
27 of 39 MW
72 of 140 MW
27 of 28 MW
MTC - Tranche
0 of 206 MW
67 of 84 MW

8 of 12 MW
18 of 19 MW
0 of 160 MW
38 of 42 MW
MTC - Tranche
0 of 205 MW
58 of 77 MW

32 of 12 MW

31 of 19 MW
0 of 177 MW
0 of 41 MW
MTC - Tranche
N/A 5 of 80 MW
15 of 15 MW
21 of 20 MW

Current as of July 1, 2019, except for National Grid, which is current as of July 15, 2019.

Community Adder

NY-Sun currently offers a Community Adder for community solar projects in O&R and Central Hudson, as specified in the April 18, 2019 Value Stack Order. The Adder is available to nonresidential and commercial/industrial projects that qualified after the Market Transition Credit (MTC) was fully allocated for these utilities. Additional details can be found in the NY-Sun Program Manual.

Utility Rate 1 Rate 2 Currently Available MW DC Total MW DC
Orange & Rockland $0.25/Watt DC $0.15/Watt DC 56.1 MW 65 MW
Central Hudson $0.40/Watt DC $0.30/Watt DC 63 MW 72 MW

O&R projects that qualify after 6/19/2018 but before 4/18/2019 will receive Rate 1. Central Hudson projects that qualify after 5/15/2018 but before 4/18/2019 will receive Rate 1. Projects in either utility qualifying after 4/18/2019 will receive Rate 2. Projects qualify when they make their 25% utility upgrade payment or have a utility-executed interconnection agreement if no upgrade costs are required.

Utility Value Stack Updates

Each utility files a monthly statement that includes actual monthly ICAP rates, current Demand Reduction Value (DRV) rate, and current Locational System Relief Value (LSRV) capacity remaining per substation. All available historic monthly statements are available through the links below. Distributed Energy Resources (DER) developers can review these for the most recent value stack data.

LSRV Zone Maps

Each utility has identified areas where it offers additional elements to the value stack, resulting in higher project compensation. The LSRV maps below delineate these territories and are broken out by utility. The LSRV zones, capacity caps, and values were approved by the Public Service Commission in the 9/14/2017 VDER Implementation Order. The utilities’ hosting capacity maps also provide information on LSRV zone locations and capacities.