Solar Guidelines for Residential Customers

Residential 5 MW-AC and less

What is the Application Process?

For DG Systems up to 5 MW proposing to operate in parallel within the distribution system and not participate in NYISO markets, Central Hudson follows the application process as listed within the NYS Standardized Interconnection Requirements (NYSSIR). The steps, timelines, and costs associated within the application process are dictated within the NYSSIR and depend on the characteristics of the DG System including but not limited to AC nameplate rating, protective equipment, and the existing distribution circuitry at the point of interconnection. Visit the Department of Public Service’s Distributed Generation website for more information and to download the most current version of the NYSSIR.

Solar Energy Preparation Checklist

Before diving into solar energy, it's crucial to understand your current energy consumption and ensure your home or business is as energy efficient as possible. Knowing your energy usage will enable your contractor to design a solar photovoltaic (PV) system that fits your specific needs.

Here’s what you’ll need to know before moving forward with a solar project:

1. Understand Your Energy Usage
   • Review your energy usage over the past 12 months (measured in kilowatt-hours) by logging into your account. Consider conducting a comprehensive home energy audit to identify opportunities for improvement.
2. Know the Customer Benefit Contribution Charge
   • The NYS Public Service Commission developed a Customer Benefit Contribution ("CBC") which is a monthly $/kW DC charge to recover public benefit program costs from customers compensated under Phase One NEM that install behind the meter generation and interconnect on or after January 1, 2022.
   • For details on how this charge is calculated, refer to this FAQs page.

3. Select a Contractor
   • The installation of your solar PV system involves coordination between your chosen contractor and us, your local utility. While the utility handles the grid connection, an independent contractor of your choosing will be responsible the actual panel installation.
   • In order to receive funding through the New York State Energy Research and Development Authority (NYSERDA), you must use a NYSERDA-approved installer. A list of eligible solar and wind installers can also be found on NYSERDA’s website.
     
     
4. Obtain Necessary Permits and Approvals
   • Your chosen contractor will need to secure any required permits, adhere to local building and electrical codes, and pass all necessary inspections.
     
     
5. Get Central Hudson Construction Approval
   • Your contractor will submit your application to Central Hudson through our Interconnection Online Application Portal (IOAP). We will review the application to ensure it meets all requirements and is properly documented before granting approval to proceed with the installation. Which you will receive via email along with your Authorized Agent (generally your solar contractor), if applicable.
     
     
6. Arrange for a Net Meter
   • After your system is installed and inspected, your contractor will need to notify submit a request for your net meter to be installed through Central Hudson’s Interconnection Online Application Portal (IOAP). This meter tracks the difference between the electricity your solar system contributes to the grid and the electricity you consume.
     
     
7. Receive Final Acceptance Approval
   • Your contractor will submit all of the necessary documents for final acceptance review to Central Hudson (i.e. proof of an electrical inspection, successful verification testing results, evidence of accurate applied inverter settings, etc.).
   • Once all steps are completed, reviewed and approved, you will receive a final letter of acceptance from Central Hudson, granting permission to operate (PTO) of your solar system.

Following these steps will help ensure a smooth and successful solar energy installation.

Central Hudson's Interconnection Guidelines

Interconnection Requirements

BESS Charge and Discharge Schedules

Inverter Settings for 50kW and below

 

Interconnection Application Forms

NYS Standardized Interconnection Contract (Appendix A)

Application Package Checklist (Appendix F)

Net Metering for Residential Customers with Farm Operations Form

 

Verification Test Procedure Templates

Solar PV Inverter-Based System Verification Test Procedure (Sample Template)

Solar PV Microinverter-Based System Verification Test Procedure (Sample Template)

Solar PV with Battery Backup Inverter-Based System Verification Test Procedure (Sample Template)

Wind Inverter-Based System Verification Test Procedure (Sample Template)

 

How do I submit a DG Interconnection Application?

Most contractors offer you the opportunity to sign an agent authorization letter and will submit the interconnection application on your behalf.

Applications are submitted online via PowerClerk, Central Hudson’s Interconnection Online Application Portal (IOAP). Need help? View the PowerClerk Tutorial.

 

Net Energy Metering & Compensation Eligibility

Net Metering

Net metering (or net energy metering, NEM) is when a solar panels or other renewable energy generators are connected to a utility grid and the excess power is sent to the grid, allowing customers to offset the cost of electric drawn from the utility.

Net metering (or net energy metering, NEM) is a solar incentive that allows customers to send excess electricity from their DG system (i.e. solar panels) back to the utility grid and is achieved by allowing a customer's meter to spin in the reverse and forward directions. When the customer's generator is producing less energy than the customer is using, the electric meter will measure the energy passing from the utility to the customer and spin in the forward direction. When the customer's generator is producing more energy than the customer is using, the electric meter will measure the excess energy passing from the customer to the utility and spin in the backward direction. The surplus energy is subtracted, or "netted," from the energy supplied by the utility to the customer, thus "net metered."

 

Solar PV, Wind, Micro-Hydroelectric¹

Limit on System Size	Compensation
Up to 25 kW-AC	Phase One NEM2
>25 kW-AC up to 5 MW-AC	Phase 2 Value Stack

Energy Storage + Eligible Renewable Technology

Limit on System Size	Compensation
Varies	Same as Renewable Technology Eligibility

Stand-Alone Storage

Limit on System Size	Compensation
Up to 5 MW-AC	Phase 2 Value Stack

CHP

Limit on System Size	Compensation
Up to 10 kW-AC	Phase One NEM2
>10 kW-AC up to 5 MW-AC3	May offset load but will not receive any compensation for generation

¹ Remote Crediting is available to residential customers with farm operations that own or operate micro-hydroelectric generating equipment, photovoltaic generating equipment or fuel cell generating equipment, all as defined in Public Service Law (PSL) Section 66-j,  or farm or non-residential wind electric generating equipment, as defined in PSL Section 66-l.

² Can opt-in to Phase 2 Value Stack. Once an account is compensated under Value Stack, it will no longer be eligible for Phase One NEM.

 ³ Standby Rate; Service Classification 14 (SC-14).

 

Community Distributed Generation (CDG)

Community Distributed Generation (CDG), (also known as community renewable energy), is when renewable energy (solar panels, wind turbines, hydroelectric systems) is installed at one location and customers (subscribers) can purchase renewable electricity from such a project to be applied as a credit to their electric bill.

The parties involved in a CDG are the “CDG Host”, who owns or operates the renewable energy facility, and the “CDG Subscribers”, who are electric utility customers that agree to accept renewable generation credits from their host on their electric bill, and the utility, facilitating the delivery and credit allocation.

An account that has a DG system installed (i.e. net-metered) cannot enroll as a CDG Subscriber.

Central Hudson does not develop or own CDG projects directly. We only allow CDG projects that are developed by companies approved by the New York Department of Public Service to interconnect to the grid. A list of these developers can be found at http://documents.dps.ny.gov/PTC/der.

Some of these developers use third party companies for their marketing and billing so if you are approached by one of these companies about participating in a CDG project you may need to ask for the name of the developer to verify information. To participate in a CDG project you must sign up directly with the CDG developer or its marketing affiliate, Central Hudson cannot enroll or disenroll you in a CDG project.

How Does Community Solar Work? Visit How it Works - NYSERDA to learn more.

Visit our Community CDG web page to learn more about becoming a “CDG Subscriber”.

 

Phase One NEM Compensation Overview

Phase One NEM allows you to offset your current electric usage and bank any access generation to be applied towards your future usage.  This compensation is subject to a 20-year term, and after that term systems will receive the compensation structure in effect at that time.

Customer Benefit Charge

• As part of the July 16, 2020, Order Establishing Net Metering Successor in Case 15‐E‐0751, the New York State Public Service Commission developed a Customer Benefit Contribution ("CBC") which is a monthly $/kW DC charge to recover public benefit program costs from mass market and small commercial customers that install behind the meter generation and interconnect on or after January 1, 2022.
• This mandated monthly fixed charge supports energy efficiency programs, solar initiatives, and low-income discounts. For details on how this charge is calculated, refer to Central Hudson Gas and Electric Tariff, Leaf 163.9.16.
• The CBC charge, which is applicable to customers with on‐site solar, wind or micro‐hydroelectric resources (with demand less than 25 kW), fuel cell, micro‐CHP, and anaerobic digesters will be issued on a separate tariff statement containing the charge by service classification, compensation type and project type. The CBC charge will be updated each January.
• The CBC is not applicable to commercial demand‐metered customers with projects under 750 kW, battery storage or projects compensated under Community Distributed Generation (“CDG”) or Remote Crediting programs.
• For DER systems that were interconnected prior to January 1, 2022, whose capacity was subsequently expanded incrementally on or after January 1, 2022, there shall be no CBC charge applied to the original capacity or expanded incremental capacity.
• DER systems interconnected prior to January 1, 2022, with complete system replacements shall be charged the CBC charge, which shall apply to their entire capacity

 

Value Stack Compensation Overview

Value Stack is a compensation method established by the NY Public Service Commission that rewards the various benefits solar panels or other distributed energy resources provide. Participating in the Value Stack program allows you to maximize your earnings based on the specific advantages your system offers, such as helping to reduce pollution, cutting down on peak electricity demand, and supporting grid stability in critical areas.

 

Components of Value Stack:

Definition and description of all potential credits.

Energy Value (LBMP): The basic worth of the electricity generated based on the day ahead value from the NYISO.

Capacity Value (ICAP): Compensation for reducing the need of new power plants by contributing to grid capacity.

Customers with intermittent resources, such as solar and wind, and are compensated via the Value Stack may select between three alternative compensation methodologies for the capacity component of the Value Stack.  Capacity rates will be published on the Statement of Value of Distributed Energy Resources – Credits (“VDER Statement”) on the Department of Public Service (DPS) website. Customers who wish to change compensation methods for the capacity component of the Value Stack may contact Central Hudson at PVmetering@cenhud.com.

• Alternative 1 shall be the default methodology and customers may move from compensation under Alternative 1 to Alternative 2 or Alternative 3; or,
• move from compensation under Alternative 2 to Alternative 3; however
• customers compensated under Alternative 2 may not switch to Alternative 1, and a project compensated under Alternative 3 may not switch to Alternative 1 or Alternative 2.

Alternative 1:  Capacity compensation will be determined by multiplying the customer-generator’s net exports in a billing period by the capacity rate for Alternative 1.

Alternative 2:  The rate determined for Alternative 2 will be multiplied by the customer-generator’s net exports in the 460 summer hours beginning 2 pm through the end of the hour beginning 6 pm on all days in the months of June, July, and August. The capacity compensation rate will be zero for all months and hours outside those listed above. A customer must elect Alternative 2 by May 1 to be eligible to receive compensation under Alternative 2 beginning June of that summer.  Customers electing Alternative 2 after May 1 will remain on Alternative 1 until April 30 of the following calendar year.

Alternative 3:  Capacity compensation will be determined in each billing period by multiplying the customer-generator’s net energy export during the previous summer’s New York Control Area (NYCA) peak hour, as adjusted pursuant to the NYCA peak load forecast for the corresponding capability period and NYISO Unforced capacity (UCAP) requirements, by the HPP UCAP rate filed with the Public Service Commission on the Statement of Market Price Charge and Market Price Adjustment.

Customers with dispatchable resources will only be compensated under Alternative 3.

Please refer to the Central Hudson Gas & Electric tariff as the compensation methodologies are subject to change in accordance with applicable laws, rules and regulations.

Environmental Value (E): Recognition for reducing emissions and providing environmental benefits by generating clean, renewable energy.

All customers to be enrolled in Value Stack compensation will be enrolled in a default Interconnecting-LSE-Option unless a joint non-revocable election is made at the time of the interconnection to opt out and take the Customer-Retention-Option.  Under the Interconnecting-LSE-Option, Value Stack customers will automatically transfer their Renewable Energy Credits (REC) from NYSERDA to Central Hudson Gas & Electric in order to receive the environmental credit compensation component of the VDER Value Stack.  For customers who elect the Customer-Retention-Option, the environmental credit compensation component will be declined in order to gain an opportunity to participate in voluntary market environmental and sustainability certification programs.

Demand Reduction Value (DRV): Value derived from decreasing electricity demand during peak usage times reducing stress on the system.

Locational System Relief Value (LSRV): Additional compensation for generating electricity in areas where the grid is under significant stress or where extra capacity is particularly beneficial.

Currently no LSRV areas in Central Hudson’s service territory

Market Transition Credit (MTC): This credit is for those that are switching from net metering to value stack. It assists in a smooth transition and ensures that DER owners don’t lose out on benefits by providing a temporary bonus as their new system is being implemented.

Appliable for systems compensated under Phase One Value Stack ONLY

Community Credit (CC): Although a resident, business, or organization may not have solar panels directly on their property, they are still able to benefit from renewable energy by subscribing to a single DER project (such as a solar field). They will then receive credits based on the energy produced.

Appliable for systems compensated under Phase One Value Stack ONLY

These values are multiplied by their corresponding units and added up together, resulting in the dollar amount of earned credits. Learn more about how to Calculate Value Stack.

Timing of Value Stack Components:

Schedule explaining if and when the rates for each component are updated.

 

Other Incentives

State and federal incentives exist for a variety of renewable energy sources. In addition, the New York State Energy Research and Development Authority (NYSERDA) offers incentives to install grid-tied solar and wind generators. Please visit NYSERDA’s website for more information.

What will my new bill look like?

View bill samples including line-item explanations under Your Bill Explained

Click HERE for more DG References and Quick Links

 

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