Net Metering (New York)

From Open Energy Information

Last modified on February 12, 2015.

Rules Regulations Policies Program

Place New York
Name Net Metering
Incentive Type Net Metering
Applicable Sector Agricultural, Commercial, Fed. Government, Industrial, Institutional, Local Government, Nonprofit, Residential, Schools, State Government
Eligible Technologies Anaerobic Digestion, Biomass, CHP/Cogeneration, Fuel Cells, Microturbines, Photovoltaics, Small Hydroelectric, Wind
Active Incentive Yes
Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Aggregate Capacity Limit Generally 3% of utility's 2005 demand for solar, farm-based biogas, fuel cells, micro-hydroelectric, and residential micro-CHP

0.3% of utility's 2005 demand for wind

Applicable Utilities Investor-owned utilities

Meter Aggregation Allowed for non-residential and farm-based customers with solar, wind, farm-based biogas, and micro-hydroelectric systems
Net Excess Generation Generally credited to customer's next bill at retail rate (except avoided-cost rate for micro-CHP and fuel cells); excess for residential PV and wind and farm-based biogas is reconciled annually at avoided-cost rate; excess for micro-hydro, non-residential wind and solar, and residential micro-CHP and fuel cells carries over indefinitely

REC Ownership Not addressed

System Capacity Limit Solar: 25 kW for residential; 2 MW for non-residential

Wind: 25 kW for residential; 2 MW for non-residential; 500 kW for farm-based
Micro-hydroelectric: 25 kW for residential; 2 MW for non-residential
Fuel Cells: 10 kW for residential; 1.5 MW for non-residential
Biogas: 1 MW (farm-based only)
Micro-CHP: 10 kW (residential only)

Date added to DSIRE 2000-01-01
Last DSIRE Review 2013-07-15
Last Substantive Modification
to Summary by DSIRE

References DSIRE[1]


Note: In October 2012 the New York Public Service Commission (PSC) issued an order directing Central Hudson Gas and Electric to file net metering tariff revisions tripling the aggregate net metering cap for most systems from 1% of 2005 peak demand (12 MW) to 3% of 2005 peak demand (36 MW). The PSC issued another order in June 2013 to raise the aggregate net metering cap for the state's other utilities to 3% of 2005 peak demand.

Separately, in August 2012 New York enacted legislation (A.B. 9560) expanding remote net metering to include agricultural and non-residential micro-hydroelectric systems. Utility tariff revisions reflecting this change should be forthcoming.

Net metering is available on a first-come, first-served basis to customers of the state's major investor-owned utilities, subject to technology, system size and aggregate capacity limitations. Publicly-owned utilities are not obligated to offer net metering; however, the Long Island Power Authority (LIPA) offers net metering on terms similar to those in the state law. Below is listing of the system size limitations, organized by technology and eligible sector.
  • Solar: 25 kW for residential, 2 MW for non-residential
  • Wind: 25 kW for residential, 500 kW for farm-based, and 2 MW for non-residential
  • Fuel Cells: 10 kW for residential, 1.5 MW for non-residential
  • Micro-hydroelectric: 25 kW for residential, 2 MW for non-residential
  • Biogas: 1 MW (farm-based only)
  • Micro-CHP: 10 kW (residential only)

The aggregate limit on net-metered PV, on-farm biogas systems, micro-CHP, fuel cell, and micro-hydroelectric systems combined is currently generally set at 3.0% of a utility's 2005 electric demand, while the limit on aggregate wind system capacity is 0.3% of 2005 demand. The aggregate limit was previously set at 1.0%, but the limit for Central Hudson Gas and Electric's limit was tripled by the PSC in October 2012, and the limit for the remaining utilities was tripled in June 2013.

For most types of systems, customer net excess generation (NEG) in a given month is credited to the customer's next bill at the utility's retail rate. However, for residential micro-CHP and fuel cell systems NEG is credited at the utility's avoided cost rate. A slightly different methodology using a monetary credit ($ as opposed to kWh) is used for customers on demand meters. At the end of each annual billing cycle, most customers (i.e., residential PV and wind and farm-based wind and biogas systems) will be paid at the utility's avoided-cost rate for any unused NEG. Compensation for unused NEG produced by non-residential wind and solar systems is not addressed by the statute, however, the New York Public Service Commission (PSC) determined in its February 2009 order that unused NEG for such systems should be carried forward from one year to the next. Likewise, residential micro-CHP and fuel cell customer-generators are not permitted to monetize NEG after a year or any other period, but may carry forward unused credits indefinitely. Recently enacted S.B. 1149 did not identify a specific annual reconciliation protocol for micro-hydroelectric facilities, but the recently approved utility tariffs provide for indefinite carryover.

In May 2011 the PSC issued an order addressing two aspects of the NEG crediting process for customer generators. First, the order requires utilities to adopt consistent NEG credit calculations that include all kWh-based customer charges beginning June 1, 2011. Prior to this, some utilities did not include certain charges (e.g., the System Benefits Charge (SBC) and Renewables Portfolio Standards (RPS) surcharge) in the calculation of NEG credits. Second, the order also requires utilities to allow customers eligible for an annual cash-out of unused NEG at avoided cost, such as residential solar customers, to make a one-time selection of the annual period in question. This provision will apply to both existing and new net metering customers and is intended to avoid circumstances where the time period used for the annual cash-out is disadvantageous for some customers (i.e., large amounts of NEG being cashed-out at a lower rate). Several utilities already permitted customer-generators to make such an election.

In June 2011 the state enacted legislation (A.B. 6270) allowing eligible farm-based and non-residential customer-generators to engage in "remote" net metering of solar, wind, and farm-based biogas systems. Micro-hydroelectric facilities were added as eligible for this arrangement in August 2012. The law permits eligible customer-generators to designate net metering credits from equipment located on property which they own or lease to any other meter that is located on property owned or leased by the customer, and is within the same utility territory and load zone as the net metered facility. Credits will accrue to the highest use meter first, and as with standard net metering, excess credits may be carried forward from month to month. Revised utility tariffs incorporating this change for solar, wind, and farm-based biogas systems became effective December 1, 2011. The August 2012 extension to micro-hydroelectric customer-generators will require further tariff revisions.

The legislation and subsequent PSC orders also establish rules relating to customer responsibility for interconnection costs (e.g., new meters, transformers, or other equipment) and limitations on such costs. Cost treatments vary by customer type and system size (see § 66-j and 66-l for details). The ownership of renewable energy credits (RECs) and other environmental attributes associated with energy production from net metered systems remains unaddressed.

The PSC has developed uniform interconnection rules for net-metered systems. See the PSC web site for more information, including a list of accepted (type-tested) inverters.


New York's original net-metering law, enacted in 1997, applied only to residential photovoltaic (PV) systems up to 10 kilowatts (kW). In 2002, the law was expanded (S.B. 6592) to include farm-based biogas systems of up to 400 kW (increased to 500 kW in 2008) that generate electricity from biogas produced by the anaerobic digestion of agricultural waste, such as livestock manure, farming waste and food-processing wastes. In 2004, S.B 4890-E (of 2003) further expanded the law to include residential wind turbines up to 25 kW and farm-based wind turbines up to 125 kW.

In August 2008 New York enacted a series of bills (S.B. 7171, S.B. 8415, and S.B. 8481) again amending the state's net metering laws, most notably extending net metering eligibility to non-residential PV and wind systems. In February 2009 the New York Public Service Commission (PSC) issued an order revising and approving several utility tariffs associated with these changes. A second order issued in June 2009 addressed further tariff filings and ordered changes to these and some previously filed tariffs. In August 2009 A.B. 2442 amended the law yet again to allow net metering for residential combined heat and power (CHP) and fuel cell systems of 10 kW or less, with utility tariffs approved in February 2010. Further legislation (A.B. 7987) enacted in August 2010 increased the capacity limit for farm-based biogas systems from 500 kW to 1 MW and revised tariffs were approved in December 2010.

Prior to the 2008 amendments, PV systems, farm biogas systems and small wind systems (10 kW and less) with customer net excess generation (NEG) for a given month had it credited to the their next bill at the utility's retail rate. At the end of each annual billing cycle, such customers were paid at the utility's avoided-cost rate for any unused NEG. However, NEG from wind-energy systems larger than 10 kW was credited to the next month’s bill at the state's avoided-cost rate. Large wind energy systems also received compensation for annual NEG at the avoided-cost rate.

Incentive Contact

Contact Name Mike Worden
Department New York State Department of Public Service
Address Agency Building 3, Empire State Plaza
Place Albany, New York
Zip/Postal Code 12223
Phone (518) 486-2498

Contact Name Jason Pause
Department New York State Department of Public Service
Address Agency Building 3, Empire State Plaza
Place Albany, New York
Zip/Postal Code 12223
Phone (518) 486-2889


Authorities (Please contact the if there are any file problems.)

Authority 1: NY CLS Public Service § 66-j and § 66-l
Date Enacted 08/02/1997 (subsequently amended)

Authority 2: NY PSC Order Case 08-E-1305 et al.
Date Effective 2009-02-27
Date Enacted 2009-02-13

Authority 3: NY PSC Order Case 09-E-0284 et al.
Date Effective 07/01/2009 (generally)
Date Enacted 2009-06-22

Authority 4: NY PSC Order Case 09-E-0819 et al.
Date Effective 2010-02-26
Date Enacted 2010-02-12

Authority 5: NY PSC Order Case 10-E-0645
Date Effective 2011-05-23
Date Enacted 2011-05-23

Authority 6: NY PSC Order Case 11-E-0318 et al.
Date Enacted 2011-11-21

Authority 7: NY PSC Order Case 12-E-0105
Date Enacted 2012-06-18

Authority 8: A.B. 9560
Date Effective 2012-08-01
Date Enacted 2012-08-02

Authority 9: NY PSC Order, Case 12-E-0343
Date Enacted 2012-10-18

Authority 10: NY PSC Order, Case 12-E-0485
Date Effective 2013-06-13

  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]


  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency (DSIRE)"