Part 1 of 2
NYSERDA, the day before Thanksgiving, proposed a remarkable $135M investment to implement its “framework for Solar Energy Equity”. If fully spent, this commitment would represent a thirty-three fold increase in investment toward LMI projects! – A total of appx. $27M in funding/year over 5 years.[1] This requested commitment reflects the state’s focus on social equity through the Climate Leadership and Protection Act (CLCPA), also known as the state’s Green New Deal. The request is a substantial portion of the overall $573M request to the New York State Public Service Commission for expanded solar funding, as discussed below.
Solar can help preserve multifamily affordable housing, such as this project in the Bronx
Who will benefit from the LMI- dedicated funding?
NYSERDA has identified four important groups that need to be involved in both the development of solar projects and receipt of their benefits:
1) Affordable housing
2) Low-to-moderate income customers
3) Environmental justice communities
4) Disadvantaged communities
These groups will be defined through a process set up by the CLCPA (full text here).
Where will the funding go?
In broad strokes, NYSERDA proposes to use the $135M in funding through five strategic areas:
1. Predevelopment and Technical Assistance
NYSERDA ran a successful predevelopment grant program from January 2017 through September 2018 that funded 21 projects around New York State. NYSERDA seeks to revise and expand this program based on lessons learned from the first tranche of funding, including additional assistance early in the predevelopment process.
2. Community Solar
NYSERDA seeks to scale Solar for All program for low-income households, which provides no cost, guaranteed savings to low-income households for Community Solar projects. NYSERDA also plans to support community solar through a range of other initiatives in development.
3. Affordable Housing and LMI Homeowners
NYSERDA proposes to continue its ‘adder’ incentive program for solar on regulated multifamily affordable housing. Current levels in ConEd territory are .40/watt up to 50kW, which translates to appx. 15% of system cost up to $20,000, and .30/watt upstate and in the Long Island region. NYSERDA will prioritize funding community solar projects on multifamily affordable housing that target LMI building residents or communities.
4. Solar Paired with Energy Storage
NYSERDA proposes to provide incentives for solar PV + battery storage projects, which extend climate resilience or financial benefits to LMI residents and affordable housing providers. NYSEDA also proposes to review opportunities for other property types to generate benefits to low-income and otherwise disadvantaged communities through the joint deployment of solar + battery storage technologies.
5. Solar Deployments to off-set Electric Generating Peaking Units
NYSERDA is planning to provide financial and technical support for solar + storage projects that can reduce the need and impact of local ‘peaker’ electric plants. Peaker plants operate while the electric grid is most constrained. As peaker plants are almost exclusively in environmental justice communities, there are significant environmental health benefits to shutting down or ‘repowering’ these power facilities with clean energy sources.
Stay tuned for the next post, which will provide a more critical examination of how NYSERDA could leverage this funding to impact LMI communities.
[1] NYSERDA requests the ability to commit the funds over 5 years and spend down over a longer time frame, consistent with previous rounds of funding commitments.