Hodgson Russ LLP Presents NYSERDA’s Findings on the Effects of the Inflation Reduction Act and Proposes Extending Funding for Increased Solar Capacity

Impacts of the Inflation Reduction Act on NY-Sun Solar Program

Date: January 5, 2024

Reporting by: New York State Energy Research and Development Authority (NYSERDA)

Recipient: New York State Public Service Commission (PSC)

On January 5, 2024, NYSERDA submitted a comprehensive report to the PSC regarding the effects of the federal Inflation Reduction Act (IRA) on NY-Sun, New York State’s flagship solar program. This filing is a part of NYSERDA’s mandatory reporting to the PSC during the mid-program review of NY-Sun. Within the consolidated report, NYSERDA also presents its proposal to extend the funding for incremental distributed solar capacity beyond the program’s 10-gigawatt target.

Despite recognizing that the IRA offers additional incentives for solar installations, NYSERDA did not suggest reducing the incentives provided by NY-Sun. Instead, they proposed utilizing previously allocated funding to support an additional solar capacity ranging from 557 MW to 1,254 MW. This capacity estimate varies depending on the types of low-to-moderate income community solar projects that the funding supports and the savings rate offered to subscribers.

Inclusive Community Solar Adder

In their filing, NYSERDA highlights the increasing opportunities for developers to access state and federal incentives for qualifying projects. Specifically, if a Phase I Environmental Site Assessment identifies the presence or potential presence of hazardous substances, developers may be eligible for both NY-Sun incentives and federal “energy communities” tax credits. In some cases, the requirements to qualify for the “energy communities” bonus credit are less stringent than those for the NY-Sun landfill/brownfield adder. This presents a new and potentially appealing option for solar developers working on brownfield sites.

As the federal government provides further guidance and regulations on IRA incentive programs for solar developers, NYSERDA may make adjustments to the rules of the NY-Sun Program. These changes will be made in accordance with market conditions and feedback from stakeholders. To provide input on NYSERDA’s report and proposal, stakeholders can submit public comments to the PSC through the provided link, addressing the letter to Hon. Michelle L. Phillips, Secretary to the Commission.

Read More of this Story at www.jdsupra.com – 2024-01-13 01:58:02

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