New York is currently ranked seventh nationally in solar capacity and will likely pass the 100 megawatt mark this year, compared to a 500 megawatt capacity in neighboring New Jersey. However, clean energy advocates, solar industry leaders, and labor unions are pushing for the adoption of a bill that would make NY a leader in solar development.
If passed, the New York Solar Industry Development and Jobs Act would:
- Create an SREC market in NY starting in 2013 where power and SRECs would be sold separately
- Ensure that 20% of NY SRECs are from systems smaller than 50 kW, meaning residential systems would be able to participate in the market without domination from utility-scale projects
- Allow for an SREC shelf life of two years so that an SREC could be sold in the year it was generated or in the following 2 years
- Encourage utilities to offer SREC contracts for as long as 15 years, meaning solar projects would be more financially attractive since utilities are required to purchase SRECs for up to 15 years
While the bill is similar to other SREC legislation in many ways, the bill does not currently have a non-compliance penalty, meaning no price ceiling would be in place in a potential SREC market.
The next step is for the bill to be reviewed by the Governor’s office in January.