VDER Resources

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), 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.

To help explain VDER, we’ve created this document:

If you want to dive deeper into the regulation behind VDER and how it applies to solar, download the VDER OrderLink opens in new window - close new window to return to this page. [PDF] and the VDER Phase One Implementation Order [PDF].

Policy Update (NEW)

On 12/12/2018 and 12/14/2018, NYS Department of Public Service filed two whitepapers suggesting improvements to the VDER Tariff:

  • The DPS Staff VDER Compensation for Avoided Cost Whitepaper [PDF] builds on the proposed changes from their 7/26/2018 whitepapers, and proposes several value stack changes including:
    • A new Community Credit in place of the Market Transition Credit for certain utility territories
    • Changes to DRV values and methodologies
    • Sunsetting of LSRV
  • The DPS Staff VDER Capacity Value Compensation Whitepaper [PDF] recommends changes to the ICAP element of the value stack, to promote consistency across utility territories and better respond to grid needs.

PV developers and other stakeholders can comment on these proposed changes on the DPS VDER websiteLink opens in new window - close new window to return to this page.. Comments are due on February 25, 2019.

Solar Value Stack Calculator

Use our Solar Value Stack Calculator to estimate compensation for your solar projects. The Calculator was updated to Revision 1.9 on 11/15/2018.

VDER on Long Island

The Long Island Power Authority (LIPA) has recently 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. has been updated, and contains the 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 VDER Order is largely similar to the rest of the State’s VDER 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.

VDER Frequently Asked Questions

We’ve compiled answers to some of the most common questions on VDER below, but if you have others, email us at vder@nyserda.ny.gov.

FAQs About VDER (Revised 6.23.2017) [PDF]

Tranches for Community Distributed Generation Projects

Allocated Capacity per Tranche (MW AC)

Tranche ConEd NYSEG Orange & Rockland Central Hudson National Grid RG&E
0/1 18 of 136 MW 62 of 62MW
20 of 23 MW
27 of 39 MW
115 of 140 MW
28 of 28 MW
2 0 of 206 MW 84 of 84 MW

10 of 12 MW
18 of 19 MW
126 of 160 MW 42 of 42 MW
3 0 of 205 MW 77 of 77 MW

32 of 12 MW

31 of 19 MW
0 of 177 MW 21 of 41 MW
4 N/A 15 of 80 MW 15 of 15 MW
21 of 20 MW

Current as of April 1, 2019.

Utility VDER 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.