New York Solar Payback Changes – What You Need to Know

The New York Public Service Commission (NYPSC) has signed an order that affects customers who are paying demand charges and installing a solar system. The order does not affect residential customers.


The good news is the changes will be similar to current regulations; in fact, most customers paying demand charges will actually see a better value for their solar overproduction.


The Value Stack is based on 4 values:

E: Your energy’s environmental value; sometimes referred to as a Renewable Energy Credit or REC
Avoided D: Your energy’s value in reducing stress on the utility grid
ICAP: Your energy’s value in producing power during strategic times of high usage
LBMP: Your energy’s wholesale rate


When you install your solar system, your electric bills will begin taking a bell-curve shape. The majority of solar production occurs in the summer, so during the summer months, your system is more likely to overproduce. This overproduction will be converted to a dollar credit based on the Value Stack rate and then applied to your electric bill.


The result is that in the summer months, you will probably see your electric bills approaching $0, and the winter months will be around 70% of your normal bill. Below is an example of the average small business’ electric bills before and after installing a solar system:

Average of a Small Business Electric Bill

The final Value Stack rates have not yet been released; however, the utilities have released preliminary rates based on several years’ worth of historical data. Final Value Stack rates will be released later this year.


New York Utility Zones

Listed below are the NY utility zones. While they loosely follow county lines, they are based on the utility grid, not road or county maps.


It is important that we know which utility zone you are in to give you the best idea of your Value Stack rate. If you are close to a zone division and unsure of your exact zone, we can show you a proposal with both rates.

New York Utility Zones

Tentative Value Stack Rates (based on utility’s historical data)

Tentative New York Value Stack Rates


Want to Learn More?

To learn more about how this will apply to you, call 877-679-1753 or click to schedule a free solar consultation.





Sara Gambone

Sara is a Marketing Specialist at Paradise Energy Solutions, working from our corporate headquarters in Paradise, PA.

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