Interconnection Standards

Technical Interconnection Issues 

New York Public Service Commission’s (PSC) Standard Interconnection Requirements (SIR) apply to distributed generators up to 2 MW in size, including wind. Available as a PDF file, this document can also be accessed through the PSC website. The rules apply to Central Hudson Gas & Electric, Con Ed, LIPA/Keyspan, Niagara-Mohawk/National Grid, NYSEG, Orange and Rockland, and Rochester Gas and Electric (RG&E).

The SIR address technical guidelines for interconnection and application procedures, although it leaves many details to the discretion of utilities. It includes the simplified requirements for small systems that qualify for net metering.

Procedurally, the standard includes an 11-step process that covers initial inquiry to final utility acceptance for interconnection. Included in the appendices of the SIR are a standard contract and standard application forms.  

Non-Technical Requirements for Interconnection

New York’s standardized interconnection requirements (see above) also addressed some non-technical issues, including procedures and timelines for processing of interconnection requests and the use of a standard contract for interconnection.

Specifically, the New York requirements provide simplified provisions for small wind systems (up to 15 kW), including an exemption from the $350 application fee, simpler interconnection application and contract forms, a shorter 4-week timeline for processing interconnection requests, an exemption from annual O&M payments for any utility equipment that has to be installed to protect the utility network from the distributed generating facility, and insurance requirements of no more than $100,000.

For larger facilities, the New York requirements provide for a $350 application fee, a longer 8-week period for processing interconnection requests, annual O&M payments by the distributed generating facility for utility-installed equipment that the utility concludes is needed to satisfy its requirements; and insurance requirements of up to $1 million.

For more information, see above for links to the text of the standardized interconnection requirements.

The New York State Energy Research and Development Authority (NYSERDA) runs this collaborative research program. The Authority typically makes solicitations for research projects on an annual basis with annual funds averaging $2 million. Funds are available to commercial, industrial, residential and utilities sectors. The program funds up to 50% of a project’s costs with expenditures running between $10,000 and $200,000 per project. Eligible technologies include passive solar, solar thermal, solar space heat, photovoltaics, hydropower, alternative fuels, geothermal, wind, biomass and waste. The largest recipients are biomass, photovoltaics, and wind.

Some 2,700 projects in 40 programs are funded by a charge on the electricity transmitted and distributed by the State's investor-owned utilities. NYSERDA derives its basic research revenues from an assessment on the intrastate sales of New York State's investor-owned electric and gas utilities, and voluntary annual contributions by the New York Power Authority and the Long Island Power Authority. Additional research dollars come from limited corporate funds. Some 400 NYSERDA research projects help the State's businesses and municipalities with their energy and environmental problems. NYSERDA lists Program Opportunity Notices on their web site. From time to time, there are opportunities relating to small wind energy applications.

For more information, contact NYSERDA, 17 Columbia Circle, Albany, New York 12203-6399; (518) 862-1090, ext. 3412.

Wind Incentive Program

Incentives are based on a percentage of the installed cost, ranging from 50% of costs for systems of 500 Watts to 10,000W (10kW), to 15% for systems larger than 80 kW. Larger incentives of up to 70% of costs are available for commercial farms, and for school applications where wind energy study is incorporated into its curriculum.

Please note that the wind incentive program will change as a result of the Renewable Portfolio Standard (RPS) but will most likely continue to operate in a similar fashion. See additional info below in RPS section.

For more information contact:
New York State Energy Research and Development Authority
17 Columbia Circle
Albany, NY 12203-6399
Phone: (518) 862-1090 Ext.3264
Jennifer Harvey E-Mail: jlh@nyserda.org
Web site: http://www.nyserda.org

On September 17, 2002, the property tax exemption was expanded to include not just solar and wind systems in NY but also farm waste electric generating equipment, which is equipment that generates electric energy from biogas produced by the anaerobic digestion of agricultural waste, such as livestock manure, farming waste, and food processing wastes with a rated capacity of not more than 400 kW. The New York State Real Property Tax Law provides a 15-year real property tax exemption for these facilities. The exemption applies to systems which are (a) existing or constructed prior to July 1, 1988 or (b) constructed subsequent to January 1, 1991 and prior to January 1, 2006.

The intent of the law is to encourage the installation of solar, wind and farm waste energy equipment systems, and to ensure property owners that their real property taxes will not increase as a result of the installation of these systems. Definitions and guidelines for the eligibility for exemption of solar and wind energy equipment are available at the Office of Property and Real Estate. Note that local tax jurisdictions (e.g., municipalities and other local entities such as school districts) can opt out of the exemption, so it is important to check on tax liability within your jurisdiction.

The Long Island Power Authority (LIPA) is working with the Long Island Farm Bureau (LIFB) to site five 50 kilowatt (kW) electric generating wind turbines on Long Island farms to help demonstrate the feasibility of using wind power technology on the Island. LIPA will fund the project under its Clean Energy Initiative (CEI), which is a multi-year, $160 million program designed to encourage the development and use of alternative clean energy technologies such as wind, solar and fuel cells, while promoting energy conservation and efficiency. As of the beginning of 2005, at least three 50 kW turbines have been installed through this program, as well as two Bergey Windpower 10 kW wind turbines. LIPA also is working on offshore wind power projects that have the potential to provide a significant portion of Long Island’s electricity. For more information see: www.lioffshorewindenergy.org

LIPA is administering a substantial amount of money generated by the state’s Systems Benefit Charge and may be interested in applying part of those funds to a small wind buydown program. The SBC is managed by the New York State Energy Research and Development Authority (NYSERDA) since the state’s electric utilities have been restructured. See the section on Local or State Incentive Programs for Wind Energy Investments (above) for more information.

We are unaware of any other New York utilities currently offering additional incentives for wind energy development.

An Order issued and effective September 24, 2004 by the New York Public Service Commission (PSC) enacted a renewable portfolio standard (RPS). The RPS seeks to ensure that at least 25% of NY’s electric use is from renewable sources by the end of 2013. Initially, the NY RPS will encourage the development of renewable resources primarily through a centrally administered, incentive-based procurement mechanism that will be managed by the New York State Energy Research and Development Authority (NYSERDA) and will be funded by a volumetric charge on the delivery portion of customers’ electric bills beginning in the fourth quarter of 2005. Encouragement will also be given to the Green Power industry to grow the voluntary sale of Green Power in the State's competitive retail market.  Customers that are exempt from contributing to the State's Systems Benefit Charge program are also exempt from the RPS charge. Municipal-owned utilities, the New York Power Authority, and the Long Island Power Authority do not fall under the jurisdiction of this program, but are encouraged to adopt similar programs. The PSC estimates that RPS target will require an additional 3,700 MW of renewable resource generation capacity.  

The RPS program identifies two tiers of eligible resources, a Main Tier and a Customer-Sited Tier. Existing renewable facilities will be eligible if they began operation on or after January 1, 2003, except that certain existing hydroelectric, wind turbine, and biomass direct combustion facilities built prior to that date may also be eligible if they can demonstrate a need for financial support. Potentially eligible resource categories in the Main Tier include biogas, biomass, liquid biofuel, fuel cells, hydroelectric, photovoltaics, ocean or tidal power, and wind. Potentially eligible resources for the Customer-Sited Tier include fuel cells, photovoltaics, and certain wind resources. The RPS program for customer-sited resources will most likely replace NYSERDA’s exiting incentive programs for solar photovoltaics and small wind energy system (see Wind Incentives section of this document) and be managed in a similar manner.

For more information, contact the PSC or NYSERDA.

The Truewind "Wind Resource Map of New York" was developed under a project funded by NYSERDA (pdf file).

The US Department of Energy has produced wind resource maps for each state. The map for New York can be found here. You may also find the definitions of Wind Power Classes for the maps helpful.

The US Department of Energy’s Energy Efficiency and Renewable Energy Network has also collected wind resource data for New York.

There is additional information in the Wind Energy Atlas of the United States, where you can review maps for other locations in the US or get more information about how the maps were created.

The National Renewable Energy Laboratory (NREL) web site contains extensive information about wind resources in the United States.

NYSERDA maintains a list of eligible renewable energy installers for their funding programs. The list can be viewed through the Power…Naturally Program website.

The American Wind Energy Association maintains alist of wind turbine manufacturers.

The Northeast Sustainable Energy Association (NESEA) maintains a searchable database called the Sustainable Yellow Pages where you can search for wind energy professionals. You can also contact thewind turbine manufacturers for a list of installers of their equipment.

Contact your local utility to request information on their interconnection policies.

The New York State Public Service Commission is responsible for regulations relating to the electric utility industry.

The New York State Energy Research and Development Authority (NYSERDA) is a public benefit corporation created in 1975 by the New York State Legislature. NYSERDA's responsibilities include:

• Conducting a multifaceted energy and environmental research and development program to meet New York State's diverse needs.
  
  

• Making energy more affordable for residential and low-income households.
  
  

• Administering the New York Energy $mart^SM program, a Statewide public benefit R&D, energy efficiency, and environmental protection program.
  
  

• Financing energy-related projects, reducing costs for ratepayers.

The US Department of Energy’s Energy Efficiency and Renewable Energy Network maintains a list of state contacts.

Wind Power New York

Wind Power New York (WPNY) was formed as a project of the American Wind Energy Association to promote the development of the wind energy industry in New York. The group’s mission is to increase state funding for wind energy, build markets for wind energy, and improve the interconnection and market rules for the integration of wind energy in New York. WindPower NY’s recent efforts resulted in net metering for wind energy and enactment of the Renewable Portfolio Standard.

Northeast Sustainable Energy Association

The Northeast Sustainable Energy Association (NESEA) has information on energy deregulation and renewable energy.

AWS Truewind

AWS Scientific Inc., an engineering and meteorological consulting firm specializing in renewable energy technologies and environmental services for the energy and government sectors, joined with Truewind to create AWS Truewind to actively support land and offshore wind projects.

Renewable Energy Long Island

Renewable Energy Long Island (RELI) is a membership-based, not-for-profit organization promoting clean, sustainable energy use and generation for Long Island.

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