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. 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 Phase 1 Order Summary 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
0/1 4.2 of 136 MW 62 of 62MW
24 of 23 MW
40.6 of 39 MW
66.4 of 119 MW 14 of 28 MW
2 0 of 206 MW 84 of 84 MW
12 of 12 MW
4 of 19 MW 0 of 178 MW 0 of 42 MW
3 0 of 205MW 13.9 of 77MW 14.3 of 11 MW 0 of 19 MW 0 of 177 MW 0 of 41 MW

Current as of August 1, 2017. On July 17, 2017 all utilities with Tranche 0 open transitioned to Tranche 1.

Locational System Relief Value (LSRV) Zone Maps

The below proposed LSRV maps are broken out by utility. The LSRV zones, capacity caps, and values are subject to review and approval by the Public Service Commission.

Important VDER Milestones

  • 05/01/17 - Utilities file Implementation Proposals, including value stack calculations
  • May 2017 - Phase Two procedural conference begins
  • 05/31/17 - Deadline to register in NYGATS for retroactive generation from January 1, 2016
  • Summer 2017 - PSC to issue Value Stack Implementation Order
  • 07/17/17 - Last day for non-Mass Market projects to submit 25% construction payment or interconnection agreement to receive Phase 1 NEM
  • 01/01/20 - Phase 1 NEM no longer available for new Mass Market projects