New York Doubles Down on Rooftop and Community Solar Energy Programs in State Budget

NEW YORK – Today, the New York State Legislature and the Governor finalized New York’s FY2027 budget, making significant new commitments to New York’s highly successful rooftop and community (“distributed”) solar programs. Distributed solar lowers New Yorkers’ electricity bills by providing direct savings to homes and businesses while lowering rates for everyone by injecting power on the grid during times of peak demand.

In addition to investing $200M in the New York State Energy Research and Development Authority (NYSERDA) NY-Sun program that incentivizes rooftop and community solar, the budget directs the New York State Public Service Commission to modernize the utility interconnection process, which will lower costs and accelerate timelines to connect new solar and energy storage projects to the electric grid.

$200M of NY-Sun funding will support approximately one gigawatt of incremental rooftop and community solar capacity, lowering utility bills for families and businesses, leveraging an estimated $1.5 billion of private capital, and supporting thousands of good local jobs in New York’s most successful clean energy sector.

The most significant interconnection reform is a directive for New York utilities to develop Flexible Interconnection programs. With Flexible Interconnection, utilities use smart-grid controls to actively manage solar and energy storage exports and charging, avoiding the need for cost-prohibitive traditional distribution upgrades that would otherwise prevent projects from moving forward. A recent study estimates that Flexible Interconnection can increase hosting capacity for community solar in Upstate NY by up to 97%, unlocking an estimated 3.3 gigawatts of additional cost-effective capacity. The study also found that Flexible Interconnection could increase energy storage integration in Con Edison territory by up to 274%.

The Budget also includes directives to increase utility cost-transparency, to consider distributed energy resources in proactive planning proceedings, and directs utilities to consider non-wires alternatives to expensive traditional capital projects; a potential boon for ratepayers and the environment.

These policies will drive continued progress toward New York’s clean energy goals while delivering New York ratepayers relief from rising utility bills. A recent study by Synapse Energy Economics finds that scaling up distributed solar and storage deployment in New York State can deliver $1 billion in annual utility bill savings through lower wholesale rates for everyone while supporting thousands of good jobs all across the State.

Now that the Budget has been finalized, NYSERDA and the Public Service Commission will develop detailed proposals to implement these policies and support the continued success of New York’s nation-leading distributed solar programs.

Noah Ginsburg, Executive Director, New York Solar Energy Industries Association (NYSEIA), said: “By doubling down on distributed solar, New York is demonstrating that clean energy and affordability can go hand-in-hand. On behalf of our hundreds of member companies, and the industry’s 18,688 workers, New York Solar Energy Industries Association thanks Governor Hochul, Senator Harckham, Assemblymember Barrett, Speaker Heastie and Majority Leader Stewart-Cousins for this substantial investment in New York’s most successful energy sector. We look forward to working closely with our colleagues at the NY Department of Public Service, NYSERDA and the utility companies to implement these impactful interconnection reforms, strengthen the reliability of our grid, and reduce energy costs for all New Yorkers.”

State Senator Peter Harckham said: “We are addressing energy affordability head-on in the FY2026-2027 budget by securing $200 million for the successful NY-Sun Program. This public funding will catalyze billions in private investment, expand local rooftop and community solar and create billion-dollar annual utility savings for consumers. At a time when other forms of new electric generation face years of delay, our investment in solar means new energy that can quickly scale, meet demand and provide long-term savings. I am proud to partner with Assemblymember Didi Barrett and my colleagues in the Legislature to cut red tape, invest in what works, and deliver affordable, locally produced power for New Yorkers.”

Assemblymember Didi Barrett, Chair of the Assembly’s Energy Committee, said: “The passage of the ASAP Act in this budget sends a clear message: In the face of funding cuts and headwinds from a hostile federal administration, New York is meeting the moment and doubling down on what works. The ASAP Act will address the energy affordability crisis head on by streamlining the interconnection process to get projects online more quickly, creating new clean energy jobs, and saving New Yorkers $1 billion a year. Let’s get building!”

Ruthie DeWit, Northeast State Affairs Director, Solar Energy Industries Association (SEIA): “New York’s commitment to expanding rooftop and community solar sends a powerful signal that distributed energy is essential to building a more affordable, reliable, and resilient grid. By investing in NY-Sun and advancing forward-looking interconnection reforms, state leaders are removing barriers that have slowed deployment while creating new opportunities for families, businesses, and local communities to benefit from the savings solar and storage provide.”

Kate Daniel, Northeast Regional Director of Coalition for Community Solar Access, said: “CCSA commends Governor Hochul, the Senate, and the Assembly for embracing distributed solar in this year’s budget. At a pivotal time for the nation’s largest community solar market, a $200 million investment in the state’s most successful energy program will maintain momentum and deliver additional savings for New Yorkers. Just as importantly, the policy measures in the budget provide a meaningful opportunity to address the largest driver of solar costs through interconnection reform, which will be critical to ensuring projects can be built more efficiently and even more affordably moving forward.”

Donato A. Bianco Jr., Vice President and New England Regional Manager of Laborers’ International Union of North America (LiUNA), said: “The inclusion of $200 million in funding for the NY-Sun program in the FY 2026-27 state budget will incentivize community solar development, create jobs with family-supporting wages and benefits and move that state forward in achieving an emissions free future. We applaud the Legislature and Governor for allocating funds to a program that is critical to ensuring New York’s future energy needs are met.”

Patrick McClellan, Policy Director, New York League of Conservation Voters, said: “Solar energy has been one of New York’s greatest clean energy success stories, but with federal support under threat, we must double down at the state level, which is why we are pleased the FY27 State Budget included additional funding for the NY Sun program and much-needed interconnection reforms. These measures will allow the state to boost community solar and make it easier to connect this clean, reliable, and affordable energy technology to the grid. We look forward to working with the legislature and the Public Service Commission to ensure its swift and successful implementation.”

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About SEIA®: 

The Solar Energy Industries Association® (SEIA) is leading the transformation to a clean energy economy. SEIA works with its 1,200 member companies and other strategic partners to fight for policies that create jobs in every community and shape fair market rules that promote competition and the growth of reliable, low-cost solar power. Founded in 1974, SEIA is the national trade association for the solar and solar + storage industries, building a comprehensive vision for the Solar+ Decade through research, education and advocacy. Visit SEIA online at www.seia.org and follow @SEIA on Twitter, LinkedIn, and Instagram.