NY Moves From Retail Rate Net Metering To Value-Based Compensation For Distributed Generation

The New York Public Service Commission (NYPSC) approved an order on March 9 that will shift the state's mechanism for compensating distributed energy resources from retail rate net metering to value-based compensation. The order is the next step in New York's broad Reforming the Energy Vision (REV) plan and was praised by environmental groups and solar advocates for both preserving existing net metering (NEM) benefits for residential and small commercial customers and boosting benefits for community solar. New York's move away from net metering follows a hard-fought compromise in Arizona that will move Arizona away from net metering as well.

The New Value Stack Tariff

The order created a new Value Stack tariff intended to more accurately reflect the value of distributed generation renewable resources. The Value Stack tariff will set forth a mechanism to compensate distributed energy resources based on the value of the products the resources provide: energy,