By William Opalka
New York regulators have doubled the cap on the amount of solar energy the state’s utilities are required to purchase under its net metering program.
The New York Public Service Commission ordered the increase to 6% of utilities’ peak demand from the current 3% (14-E-0151).
The commission acted in response to a request by environmentalists for an increase and a petition by Central Hudson Gas & Electric, which said it expected to reach the 3% cap in mid-2015, mostly through its residential solar programs.
The state’s 2008 Public Service Law set net metering at 1% of a utility’s peak demand, using 2005 as the base year, then gave the PSC discretion to increase the amount “in the public interest.” Central Hudson’s cap was increased to 3% in 2012 and a 2013 order raised the cap for the state’s other utilities.
Central Hudson is currently at about 83% of its 36-MW cap. National Grid is at 102% of its 196-MW cap, including projects proposed but not yet built within its service territory. As of Sept. 30, no other utility is above 63% of its cap.
The Solar Energy Industries Association, the National Resources Defense Council and other environmental groups had asked the commission to clarify the process for increasing the cap while Central Hudson had proposed increasing it to 12%.
The PSC expressed concerns about shifting costs onto ratepayers that decline or are unable to participate in a solar program. The 3% cap increases the average delivery bill of Central Hudson’s customers by about 0.5%. If all of the new net metering capacity is from solar generation, additional cost increases are expected to be from 0.5% to 1%, the PSC said.
In 2012, Gov. Andrew Cuomo announced the NY-Sun Initiative with a goal of installing 3 GW of solar power by 2023. In April 2014, Cuomo promised $1 billion for the program. Current capacity is more than 316 MW.
The new cap is effective Jan. 2. Central Hudson, Consolidated Edison, New York State Electric and Gas, National Grid, Orange & Rockland Utilities and Rochester Gas & Electric are to make compliance filings by Dec. 22.