New York Commission Allocates Surplus NY-Sun Funds to Boost Solar Access for Low-Income Households

The New York State Public Service Commission on April 24 approved channeling surplus funds from the NY-Sun initiative into new solar projects that benefit low-income households. The state is expected to reach  its 10-gigawatt distributed solar goal with $421 million left over from the program’s original $3.27 billion budget. About $150 million of that surplus will be used to extend solar incentives, while the rest will be directed to the statewide Clean Energy Fund to help reduce future costs of other clean energy programs.

The NY-Sun program, administered by the New York State Energy Research and Development Authority, has helped drive down the cost of solar installations and fostered a more competitive market. Commission Chair Rory Christian stated that the program’s success allows the state to keep expanding solar access while addressing affordability challenges for vulnerable communities.

Since its launch, NY-Sun has drawn $3 billion in public investment and is expected to spur $4.4 billion more in private funds. It has also added about 6,000 solar jobs across New York, with new labor standards requiring prevailing wages on medium-sized projects between one and five megawatts. In 2022, the commission expanded the target amount of distributed solar generation projects installed in New York from 6 gigawatts to 10 gigawatts by 2030.

The expansion is expected to generate enough clean energy to power nearly 700,000 homes each year, significantly benefitting disadvantaged areas. It also fits into New York’s broader climate strategy under the Climate Leadership and Community Protection Act, which targets 40 percent economy-wide emissions reduction by 2030 and 85 percent by 2050  and commits at least 35 percent of clean energy benefits to underserved communities.

Beyond direct incentives, distributed solar will continue to be backed by mechanisms like the Value Stack compensation model and the Statewide Solar for All program. Announced during Earth Week, the move underscores New York’s commitment to building a cleaner, more equitable energy future.