EnerKnol’s Visual Primer – New York Approves Utility Proposals for Setting the Value of DER

The New York State Public Service Commission (NY PSC) has issued an order approving utility proposals to implement its Value of Distributed Energy Resources (VDER) compensation mechanism, a structure that values DER in a more accurate manner including locational and environmental benefits that were previously not quantified. However, solar advocates that have so far commended New York’s reforms said the approval was inadequately reviewed and could undercompensate DER. While studies on the costs and benefits of solar and other types of DERs will help other states set their policies, New York will provide invaluable real-life lessons for other states with emerging solar markets.