New York: NYSERDA - On-Site Small Wind Incentive Program

Note: The most recent solicitation under this program (PON 2097) has expired. This summary describes the program as it existed under PON 2097 and is included for informational purposes only. It will be updated if and when a new solicitation is issued.  The broader New York Customer-Sited Tier (CST) program under which the small wind program is funded is scheduled to continue through December 31, 2015 so future solicitations are expected.

The New York State Energy Research and Development Authority (NYSERDA) provides incentives for eligible small wind systems. Incentive payments are not paid directly to the owner of the wind system. Instead, they are paid to eligible installers that have been approved to participate in this program, but the entire incentive must be passed on to the owner of the wind system by the eligible installer. Installers are limited to having 10 open applications at any given time under the current program (PON 2097) or previous programs (e.g., PON 1098).

This program is offered as part of the Customer-Sited Tier of the state renewable portfolio standard (RPS) program. Consequently, only customers of electricity distribution utilities that collect the RPS surcharge -- Central Hudson Gas & Electric Corporation, Consolidated Edison Company of New York, Inc., New York State Electric & Gas Corporation, National Grid, Orange and Rockland Utilities, Inc. and Rochester Gas and Electric Corporation -- and who pay the RPS surcharge on their electric bills are eligible for program incentives.

As of this writing, NYSERDA has identified a total of 29 wind system models made by 16 different manufacturers as being eligible for the incentive. The currently eligible models (this may change over time) range in size from 920 W to 179 kilowatts (kW rating at 11 m/s) although a customer may receive incentives for systems of up to 2 MW per site/customer. Systems are also limited to the capacity needed to meet 110% of historic on-site consumption. Customers eligible for remote net metering under a utility tariff may submit information on satellite accounts for the purpose of increasing the system size limit implied by this restriction. The incentive itself is based on the expected annual energy output of the system as calculated by the New York State Small windExplorer*, as follows:

• Tier I (first 10,000 kilowatt-hours (kWh) of annual energy output): $3.50/annual kWh ($35,000 maximum)
• Tier II (next 115,000 kWh of annual energy output): $1.00/annual kWh ($150,000 maximum)
• Tier III (annual energy output above 125,000 kWh): $0.30/annual kWh

The incentives are additive, such that a wind turbine which is expected to produce 125,000 kWh annually receives the maximum Tier I incentive ($35,000 at 10,000 kWh) plus $1.00/annual kWh for up to 115,000 kWh through Tier II ($115,000 maximum), leading to a total maximum incentive of $150,000 ($35,000 + $115,000). Tier III systems receive the maximum Tier I and Tier II incentives ($150,000 total) plus $0.30/annual kWh for annual energy production in excess of 125,000 kWh. Incentives are capped at the lesser of $400,000 per site/customer or 50% of installed system costs.

All systems must be new and grid-connected. Equipment eligibility restrictions also exist for power inverters, monitoring equipment, and other system components. In addition, various siting criteria, such as setbacks from residences and hub height above nearby obstacles, apply to all systems.

Incentives are paid in two installments. Sixty-five percent (65%) of the incentive is paid after the equipment is delivered to the installation site and all required permits, approvals, certificates, etc. from all jurisdictions having authority are secured. The remaining thirty-five (35%) is paid when the wind system is grid-connected and approved by your utility. NYSERDA reserves the right to review any installation prior to final incentive payment being made.

The current solicitation has a program budget of $4.6 million through December 31, 2011. Incentives provided to customers under this program may not be combined with any other incentive programs offered by NYSERDA that are designed to directly offset the cost of a wind installation. In addition NYSERDA will own any renewable energy credits or other environmental attributes associated with energy production from rebated systems for the first three years of system operation.


*While building-mounted systems are potentially eligible for incentives under this program, program literature notes that this tool is not appropriate for building-mounted systems or those installed in an urban environment. For such systems, the installer must provide a detailed analysis of wind resources and expected energy output.