Governor Andrew M. Cuomo announced $55 million for energy storage including commercial and residential storage projects on Long Island. This program will be launched with an initial rollout of nearly $15 million in incentives from the New York State Energy Research and Development Authority. Energy storage projects supported by this Long Island initiative will advance progress toward achieving New York's target of 3,000 megawatts of energy storage deployed by 2030 - the equivalent to powering 40 percent of New York's homes. Today's announcement supports Governor Cuomo's Green New Deal - a nation-leading clean energy jobs agenda putting New York on a path to carbon neutrality.
"With our nation-leading clean energy goals and aggressive strategy to combat climate change, New York continues to set the example of climate leadership for other states across the country," Governor Cuomo says. "These incentives for energy storage will help Long Islanders grow their clean energy economy and create jobs while also improving the resiliency of their grid in the face of more frequent extreme weather events."
The $15 million committed today is immediately available to Long Island residents and businesses for commercial and residential projects through NYSERDA's Retail Energy Storage Incentive Program. The remainder of the funds, totaling about $55 million, will be allocated within the next three to five years and targeted in a manner to drive down costs and scale up the market for these clean energy technologies. The incentives released today will support energy storage installed at customer sites for standalone systems or systems paired with solar.
"As we work to combat climate change and transform our grid, Long Island will play an important role in our energy future," says Lieutenant Governor Kathy Hochul. "This significant funding for energy storage projects will complement our investments in wind and solar, allowing us to meet our ambitious clean energy goals. We know our environment faces a continuing threat, and our work today will create a brighter future for generations to come."
As renewable energy resources, such as wind and solar, increase across the state, energy storage will help to enhance the efficiency of the electric grid in order to maximize the benefits of these renewable energy resources. Energy storage systems will also enable New York to meet its peak power needs while lessening the reliance on older, less efficient fossil-fuel generating plants.
Funding is currently available in the following two categories:
NYSERDA's Retail Energy Storage Incentive Program will support new grid-connected energy storage systems up to 5 mW of alternating current (AC) connection located either with load behind-the-meter or connected directly to the distribution system. The first block incentive will offer $250 per kWh of energy storage installed. Eligible energy storage systems include chemical, thermal, or mechanical systems compensated under a Public Service Electric and Gas Long Island (PSEG-LI) tariff or load relief program. Eligible systems may be installed alone or paired with on-site generation like solar.
NYSERDA and PSEG-LI are also jointly launching a residential solar-plus-energy storage program that provides new projects in Long Island with an upfront storage incentive through NYSERDA's NY-Sun Program as well as additional compensation through PSEG-LI's Dynamic Load Management (DLM) tariff. The DLM tariff pays customers to reduce the amount of electricity used from the electric grid during hours when the demand for power is highest. NY-Sun will initially release two incentive blocks for new residential solar-plus-storage systems beginning at $250 per kWh of installed energy storage and then declining to $200 per kWh in the second block.
Alicia Barton, President and CEO, NYSERDA says, "As more renewable resources are brought online throughout the state, energy storage will improve the efficiency of the grid to better integrate resources like solar while providing residents and businesses with a cleaner, more reliable energy system. Today's announcement reinforces Long Island's position as one of the leading clean energy markets in New York and moves the state closer to reaching Governor Cuomo's aggressive 3,000 megawatts by 2030 energy storage target."
Targeting incentives towards projects that pair solar and energy storage technologies will not only help continue to drive down costs but will help residential customers see value in de-carbonizing the grid and improving its resiliency. With nearly 14,000 solar projects on Long Island, totaling over 111 mW, shifting focus to programs that support the coupling of solar and energy storage technologies will further support the transformation of Long Island's clean energy market. Today, Long Island is home to a mature solar market and has led the way in New York in generating a self-sustaining model for residential solar.
Senator Kevin Parker, Chair of the Senate Energy and Telecommunications Committee, says, "As our State continues to build upon our clean energy goals, it is important that we take these vital steps, such as investing in energy storage, in order to achieve our bottom line of combatting climate change and ensuring a clean energy future for our State. I applaud Governor Cuomo for making this investment, as we continue to work diligently to reach the target goals set forth in New York State's Green New Deal."
"Creating a carbon-free economy that benefits Long Island ratepayers is essential and this grant program - a partnership with NYSERDA and Governor Andrew M. Cuomo - prioritizes an investment in clean energy development on Long Island," says Senator Todd Kaminsky, Chair of the Senate Environmental Conservation Committee. "We will continue to work in partnership to protect our planet through bold, aggressive actions."
Assembly Member Steve Englebright, Chair of the Assembly Environmental Conservation Committee, says, "Incentivizing energy storage projects on Long Island is a necessary step in order to develop our renewable resource capacity. This will help reduce our reliance on fossil fuels, stabilize energy bills for ratepayers, and reduce greenhouse gas emissions. I applaud Governor Cuomo for this initiative and look forward to more proposals that will ensure New York State takes the lead in addressing climate change."
New York State is becoming a national leader in battery storage, says Dan Eichhorn, president and COO, PSEG Long Island.
"This funding supports modernizing Long Island's energy grid with new technology that will help PSEG Long Island meet New York's ambitious clean energy goals. I applaud the Governor for his steadfast commitment to Long Island and New York's clean energy economy."
These Long Island energy storage incentives build on the $280 million in incentives announced by Governor Cuomo in April as part of a $400 million investment to achieving New York's nation-leading energy storage targets and a $250 million commitment the New York Power Authority (NYPA) made in December to accelerate the flexibility of the electric grid by collaborating on grid-scale energy storage projects and addressing market and financing barriers. The announcement is the latest in a series of actions Governor Cuomo has taken to accelerate the energy storage sector in New York State since the release of the New York Energy Storage Roadmap last June.
In December 2018, the New York Public Service Commission (PSC) approved its Energy Storage Order (Order) adopting Governor Cuomo's target for 1,500 mW of energy storage by 2025 and establishing a 3,000 mW target by 2030, which is expected to deliver more than $3 billion in benefits to New Yorkers and avoid two million metric tons of carbon dioxide emissions. These targets make clear that energy storage will continue to be a key part of New York's efforts to achieve its ambitious clean energy goals as called for under Governor Cuomo's Green New Deal.