NY Community Solar is Changing.
Here’s What Large Users Need to Know
New York has seen unprecedented growth in their community solar market.
They have become a leader in the space, and have utilized it to help meet clean energy commitments.
Now, for key reasons I’ll highlight below- this market is shifting and large electricity users should be paying attention.
My name is Dakota Malone, I co-founded Community Solar Authority six years ago to help municipalities, corporations, and big businesses access the program turnkey.
Our clients have unlocked access to over $20M+ in future electricity savings, and we pride ourselves on delivering top-tier education & execution to make this process seamless.
Check out this article to understand the key changes and why it’s important for you.
In the meantime, check out this NYSERDA link on the current state of NY community solar: https://www.nyserda.ny.gov/Featured-Stories/New-York-Leads-on-Community-Solar
The Summary: Reduced Availability for Anchors
We consult alongside some of the most significant developers in the US.
We get some insights on where their focus is heading for future development, and with changes in legislation, there is a new trend.
Priority to LMI Households
Community solar in NY state is shifting heavily towards LMI (low-to-moderate-income) households with a big push for energy equity.
This is coming off the back of new incentives for developers that prioritize serving these clients and ultimately means more capacity will be allocated towards these households- reducing availability for traditional large users.
An incentive called the Inclusive Community Solar Adder has specifically caused these market changes; ultimately allowing developers to generate additional revenue on their solar projects.
Financial Incentives & Subsidies
Along with the incentive above, more are being introduced to benefit LMI households. This includes both state-level & federal incentives through the Inflation Reduction Act.
We’re seeing developers shift their future pipelines of traditional community solar over to these adders & incentives to capture additional revenue. Their financiers want to maximize their project revenue and serve the LMI community.
As developers shift their focus to these style projects, it means less and less availability for traditional anchor tenants to participate in community solar and benefit.
PS: Our pipelines are already filled for 2024, we’re actively subscribing 2025- and these market shifts are coming quickly. We’re relaying to our clients to get community solar done now and capture the incentives while they’re available.
Policy & Regulatory Changes
New York’s regulatory framework is shifting with these incentives pouring in to focus on energy equity as well.
Moving forward, a certain percentage of community solar capacity must be dedicated to the LMI community.
To get projects approved & capture the incentives- developers have to comply & create a new carve-out that shrinks the opportunity for anchors.
We’re seeing developers try to create a balancing act between this new legislation for LMI & the classic community solar play involving large anchor tenants.
To us, anchors are a crucial piece to the market because they provide stability, risk mitigation, and help promote environmental stewardship.
Market Dynamics
We intend to maintain an exclusive development pipeline of projects to help our future anchor clients get access to the program.
An increase in competition between entities who want to claim available incentives from the program will be a guarantee with these market shifts.
We’ll predict changes in terms, discounts, and more as this continues to unfold in the NY market- which is why we tell our clients to get access to it now.
Large anchor clients would benefit greatly from our services in the future. As a stakeholder in the National Community Solar Partnership, we can serve as your bolt-on team at no cost to help you get turnkey access.
Conclusion
New York has been a leader in the community solar space across the US, and now it’s time for some market changes.
Developers are now incentivized to gear their portfolios toward serving LMI households and entities- which means deprioritizing anchors.
Although we’re slowly starting to see future projects flip already, there is still time to get access to the program and capture the benefits traditionally offered.
Community solar will still be available to anchors in the future, there just may be many less projects available, and the savings may not look as good as they once have.
Want access to the program before these changes affect your savings?
Visit communitysolarauthority.com and book a call to get started.
