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 on Long Island (New)

The Long Island Power Authority (LIPA) has recently approved a version of VDER for customers of PSEG-Long Island. LIPA’s tariff document has been updated, and contains the specific details. Please visit PSEG’s VDER website for more details and Long Island-specific resources. The 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 difference are:

  • Mass market (residential, and non-demand commercial) offtakers of 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 Value Stack Calculator

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.

Calculator Version 1.5 [XLS], Revised 2/14/2018

Rev 1.5 includes the following changes:

  • Long Island-specific data added, including PSEG’s DRV, LSRV, and ICAP rates, and Zone K LBMP data
  • Brookhaven weather station data added
  • Tranche 4 added for Orange & Rockland and Central Hudson, per January 17, 2018 PSC Order
  • Annual PV degradation rate now applies to system’s expected grid injections over 10 peak utility hours
  • Other minor adjustments
  • “E” value updated to $27.41/MWh (3/13/2018)

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 7.7 of 136 MW 62 of 62MW
24 of 23 MW
40.6 of 39 MW
89.2 of 140 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 157 MW 12 of 42 MW
3 0 of 205 MW 45 of 77 MW

40.2 of 12 MW

33.4 of 19 MW
0 of 177 MW 0 of 41 MW
4 N/A N/A 0 of 15 MW 4 of 20 MW

Current as of March 1, 2018. Sizes of National Grid Tranche 1 and 2 were adjusted to reflect February 26, 2018 PSC Order.

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 listed on the DPS website with other filings.  The monthly VDER statement is labelled Value Stack Crediting.

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.