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). For a high-level of the Value Stack, download the fact sheet [PDF].

Solar Value Stack CalculatorVDER 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.

Value Stack Order - Update

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. Please see the NY-Sun Program Manual and the section below for additional details about Community Adder availability and implementation.

Community Credit / Community Adder Order

On March 17, 2020, NY Department of Public Service issued a new Order Regarding Community Credit and Community Adder Allocations. The Order specifies that beginning on May 1, 2020, National Grid, NYSEG, and RG&E will open a second Community Credit Tranche at $0.02/kWh. This tranche will be of limited size and will be based on the size of CDG projects that have cancelled from the MTC and CC tranches since the issuance of the Phase Two Value Stack Order (April 18, 2019).

 On May 1, 2020, National Grid, NYSEG, and RG&E opened Community Credit Tranche 2 and began allocating capacity on a first-come-first-served basis, beginning waitlist projects [XLSM] that had previously made their qualifying payment.

 

Value Stack on Long Island

The Long Island Power Authority (LIPA) has approved a tariff update effective August 1, 2019, bringing its VDER compensation methodology closely into alignment with the PSC Orders. 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 Tariff is largely similar to the rest of the State’s Value Stack program. The most important differences are:

  • For Community Distributed Generation (CDG) projects that qualify before 1/1/2020, mass market (residential, and non-demand commercial) will receive volumetric crediting rather than monetary crediting through the value stack. For CDG projects that qualify after 1/1/2020, the project will receive monetary value stack compensation, including a Community Credit, regardless of offtaker makeup. The current Community Credit value has been increased from $0.02/kWh to $0.05/kWh.
  • The Demand Reduction Value (DRV) element of the value stack is calculated based on system injections to the grid between 2-7PM on non-holiday weekdays from June 1 to August 31.
  • ICAP values are calculated based on the NYISO spot (not monthly) capacity auction price.

Tranches for Community Distributed Generation Projects

In addition to the base Value Stack compensation, eligible projects may receive a Community Credit. The Community Credit pays developers a supplemental $/kilowatt-hour (kWh) that is locked in for 25 years (the rate varies based on location and availability). The Community Credit is the successor to the Market Transition Credit (MTC) and is similar in structure.

To continue the robust development of Community Distributed Generation (CDG) the Community Adder is available in areas that have fully exhausted their Community Credit tranches. For more information, including current rates and availability, see the Community Adder dashboard.  

 

Allocated Capacity per Tranche (MW AC)

Tranche ConEd NYSEG Orange & Rockland Central Hudson National Grid RG&E
Community
Credit - Tranche 1
227 of 350 MW 126 of 125 MW
CLOSED
N/A N/A 514 of 525 MW
CLOSED
76 of 80 MW
Community
Credit - Tranche 2
N/A 21 of 21 MW
CLOSED
N/A N/A 40 of 40 MW
CLOSED
0 of 12 MW
MTC - Tranche
0/1
8 of 136 MW
CLOSED
61 of 62MW
CLOSED
19 of 23 MW
CLOSED
25 of 39 MW
CLOSED
66 of 140 MW
CLOSED
25 of 28 MW
CLOSED
MTC - Tranche
2
0 of 206 MW
CLOSED
60 of 84 MW
CLOSED

8 of 12 MW
CLOSED
18 of 19 MW
CLOSED
0 of 160 MW
CLOSED
36 of 42 MW
CLOSED
MTC - Tranche
3
0 of 205 MW
CLOSED
52 of 77 MW
CLOSED

26 of 12 MW
CLOSED

30 of 19 MW
CLOSED
0 of 177 MW
CLOSED
0 of 41 MW
CLOSED
MTC - Tranche
4
N/A 0 of 80 MW
CLOSED
14 of 15 MW
CLOSED
21 of 20 MW
CLOSED
N/A N/A

Current as of June 15, 2020. Please see the Community Adder Dashboard for information on the Community Adder.

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.

Historic Value Stack Credit Data

New York Department of Public Service (DPS) has compiled historic data and rates for the value stack [XLMS]. This data will be updated on a monthly basis as the utilities provide their monthly value stack compliance filings. Please direct any questions to DPS staff.

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.