NYSERDA launches US$775 million funding for residential and retail energy storage

April 30, 2025
LinkedIn
Twitter
Reddit
Facebook
Email

The New York State Energy Research and Development Authority (NYSERDA) has launched a programme to incentivise residential and retail energy storage in the state, offering a total of US$775 million for energy storage projects.

According to NYSERDA’s programme opportunity notice (PON) for the incentives programme, US$675 million is available for retail energy storage projects and US$100 million for residential energy storage projects.

The Residential and Retail Energy Storage Market Acceleration Incentives Programme was authorised by the New York State Public Service Commission (PSC) in a June 2024 order.

From NYSERDA, the programme “provides financial incentives for the installation of new grid-connected distributed residential and nonresidential energy storage systems by participating contractors.”

This article requires Premium SubscriptionBasic (FREE) Subscription

Enjoy 12 months of exclusive analysis

Not ready to commit yet?
  • Regular insight and analysis of the industry’s biggest developments
  • In-depth interviews with the industry’s leading figures
  • Annual digital subscription to the PV Tech Power journal
  • Discounts on Solar Media’s portfolio of events, in-person and virtual

Or continue reading this article for free

Incentives are available on a first-come, first-served basis and are structured as a fixed rate per kWh of system energy capacity.

NYSERDA also explains that the storage systems can be standalone or paired with a new or existing ‘clean’ on-site generation.

For residential installations, incentives are available for up to 25kWh of storage capacity, while retail installations can receive incentives for up to 5MW of storage capacity. The authority stipulates that the projects must be new, permanent and stationary.

The programme further specifies that projects awarded incentives must provide value to a customer through an investor-owned utility (IOU) or New York State Independent System Operator (NYISO) tariff.

This can be done by offsetting demand charges, receiving compensation through the New York State value of distributed energy resources (VDER) tariff or participating in NYISO’s distributed energy resource (DER) and aggregation participation model.

The VDER tariff, or the Value Stack, allocates values according to energy, capacity, environmental advantages, demand reduction, and locational system relief. The New York Public Service Commission provides compensation as bill credits.

Energy storage developers such as NineDot, which recently announced a US$65 million equipment financing for 20 energy storage projects across New York City, use the Value Stack to monetise community storage.

In addition to encouraging distributed energy storage installations, the New York PSC recently approved the draft Bulk Energy Storage Program Implementation Plan filed by NYSERDA, which supports grid-scale energy storage facilities.

New York has a goal of achieving 6GW of energy storage by 2030. In 2024, The New York PSC approved a state roadmap to reach this target.

Governor Kathy Hochul announced the approval and a competitive solicitation for onshore renewable energy resources, held by NYSERDA, on the same day.

Contractor applications for the Residential and Retail Energy Storage Market Acceleration Incentives Programme opened on 22 April.

Retail energy storage project applications will open on 20 May; retail energy storage project applications submitted by 10 June will be re-ordered based on the date of full utility interconnection deposit, and the residential energy storage application will open the same day.

11 November 2025
San Diego, USA
The 2024 Summit included innovative new features including a ‘Crash Course in Battery Asset Management’, Ask-Me-Anything formats and debate-style sessions. You can expect to meet and network with all the key industry players again in 2025 from major US asset owners, operators, RTOs and ISOs, optimizers, software and analytics providers, technical consultancies, O&M technology providers and more.

Read Next

Premium
October 27, 2025
RedEarth’s Marc Sheldon admits that the company decided to push back the launch of Australia’s first locally manufactured V2G charger.
October 24, 2025
Energy Vault has acquired a 150MW battery energy storage system (BESS) in Texas. Meanwhile, Jupiter Power has entered an agreement with Austin Energy to provide 100MW of electricity from a BESS facility.
October 24, 2025
Redwood Materials has closed a US$350 million Series E funding round to scale up its critical battery materials and energy storage businesses.
October 24, 2025
Peregrine Energy Solutions has secured US$130 million from investors including the South Korean Ministry of Environment.
October 23, 2025
Calibrant Energy will deliver a 31MW/62MWh battery energy storage system (BESS) at Aligned Data Centres’ campus in the Pacific Northwest area of the US.

Most Popular

Email Newsletter