As outlined in Bill Acker’s February 3rd blog and NY-BEST’s recent newsletter, ConEdison, in conjunction with NYSERDA and the New York Department of Public Service, has just introduced proposed incentives for energy storage and demand response measures that are among the highest in the nation. These incentives--subject to final approval--will provide $2,100 per kW for battery storage and $2,600 per kW for thermal storage projects. Projects must meet a minimum size of 50kW and must be installed and operational by June 1, 2016. An additional bonus incentive of 10% will be paid to projects larger than 500kW, and 15% for projects larger than 1MW.
We view these incentives and the corresponding timeline as aggressive and smart, and a clear indication that New York will be a leader in the deployment of energy storage. To help ensure the success of this effort, NY-BEST has participated in a series of meetings and discussions throughout the fall and winter with ConEd, the NYC Department of Buildings, the Fire Department of New York and other relevant parties. These discussions have led to a path for expedited approval of energy storage projects in NYC through a consolidated review process hosted by the NYC Department of Buildings. In addition, we expect to have new battery chemistries added to the NYC building code upon its next revision, which is due very soon.
Given the increases in demand charges that ConEdison customers have seen and the very real costs driving these increases, the NYC market was already a very good place for energy management technologies. With the new incentives for storage, NYC is poised to be the best market anywhere for energy storage.
While final approvals could potentially lead to changes in some of the details, this program is definitely on the fast track. For NY-BEST members who are interested in participating, we strongly encourage you to get engaged right away. And, while companies do not need to have a specific location in mind for their project in order to begin discussions and interactions with the City on the approval process, the more detail on the desired installation, the better. The first steps with the City administration will focus on technology questions and developing an understanding of how the proposed system would work. We can introduce you to key staff at ConEd, NYSERDA and the NYC Buildings Department, who will be critical in getting your technology on the path to approval.
This process should start immediately -- ConEd is eager to see applications and given that the approvals from the City will take time, it is better to get started as soon as possible. Anyone interested should contact me (email@example.com) right away and we can start the ball rolling.
To paraphrase the great Frank Sinatra, “If you can store it there, you’ll store it anywhere…”