Value of Distributed Energy Resources (VDER)

Guided by the principles of Reforming the Energy Vision (REV), the Value of Distributed Energy Generation Phase One Decision [PDF] was released by the Public Service Commission in March of 2017, and the Phase One Implementation Order [PDF] was released Sept 14, 2017. This new methodology takes the first step in moving beyond Net Energy Metering (NEM) to a more accurate valuation and compensation of Distributed Energy Resources. VDER factors include the price of the energy, the avoided carbon emissions, the cost savings to customers and utilities, and other savings from avoiding expensive capital investments.  

For questions, please email

Download: FAQs About VDER (Revised 6.23.2017) [PDF]

VDER Value Stack Calculator (NEW)

The Value Stack Calculator was developed to provide an accurate estimate of a PV project’s compensation under the Value Stack.

The Value Stack Calculator will be periodically updated and revised: please make sure you are using the most recent version of the calculator. It requires a recent version of Microsoft Excel.

*NEW* Calculator Version 1.4 [XLS], Revised 11/28/2017

Rev 1.4 includes the following changes:

  • Solar Profile and On-Site Load data adjusted to Eastern Prevailing Time rather than Eastern Standard Time (adjusted to account for daylight savings’ time)
  • Correction to issue where LBMP was overcalculated for certain project configurations (onsite load present and 2-3 year average LBMP was selected)
  • Simplified LSRV selection for most utilities to a simple “Yes” or “None”
  • ConEd and O&R’s ICAP Alternative 1 figures adjusted to reflect the rates’ recalculations every 6 months. Distinct rates now provided for summer and winter
  • Other minor adjustments

VDER Presentations and Summaries for Solar Developers

Phase One Tranches for Community Distributed Generation Projects

Allocated Capacity per Tranche (MW AC)

Tranche ConEd NYSEG Orange & Rockland Central Hudson National Grid RG&E
01 6.6 of 136 MW 62 of 62MW
24 of 23 MW
40.6 of 39 MW
74.2 of 119 MW 28 of 28 MW
2 0 of 206 MW 84 of 84 MW
12 of 12 MW
18.3 of 19 MW
0 of 178 MW 6 of 42 MW
3 0 of 205MW 35 of 77MW 32.3 of 11 MW 15.7 of 19 MW 0 of 177 MW 0 of 41 MW

Current as of December 1, 2017.

Utility Monthly VDER Statements

Each utility files a monthly statement including actual monthly ICAP rates, the current DRV rate, and current LSRV capacity remaining per substation. These statements are filed on the DPS Matters shown below.

Locational System Relief Value (LSRV) Zone Maps

The below proposed LSRV maps are broken out by utility. The LSRV zones, capacity caps, and values were approved by the Public Service Commission in the September 14, 2017 VDER Implementation Order.

Important VDER Milestones

Documents filed by the utilities and the Department of Public Service are available on the DPS VDER page and the DPS Matter.

  • 10/15/17 – Utilities to file detailed explanation of how and when credits appear on customer bills
  • 11/14/17 – Utilities to file automation and billing report – timeline for automation implementation and costs, timeline for implementing consolidated billing within 12 months of Order
  • 11/20/17 – Deadline for comments on proposed 5MW AC cap
  • 12/20/17 – DPS staff to update Standardized Interconnection Requirements (SIR) to allow PV + Storage
  • 01/01/20 - Phase 1 NEM no longer available for new Mass Market projects