New York PSC Adopts Order Replacing Net Metering With Value Stack Compensation for Distributed Generators

The New York Public Service Commission ("PSC") approved a landmark order in its Reforming the Energy Vision ("REV") proceeding, adopting a new paradigm replacing net metering for clean distributed energy resources ("DER") with a new method of compensation known as a "Value Stack." The Value Stack will be implemented through the development of Value of Distributed Energy Resources ("VDER") tariffs in each utility service territory in New York. 

Up until now, net energy metering ("NEM") enabled DER to sell excess power back to a utility for a set price based upon the price at which the utility would sell power to the account holder. As an example, if a commercial customer has solar on its premises, the credit the customer would receive for net metered electricity would equal the price the customer pays if it takes power from its utility. The PSC found that NEM fails to accurately reflect the value that the DER provides to the utility system, and it expects VDER to