Fuel Cell Rebate and Performance Incentive (New York)

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Summary

Last modified on December 17, 2014.

Financial Incentive Program

Place New York

Name Fuel Cell Rebate and Performance Incentive
Incentive Type Performance-Based Incentive
Applicable Sector Commercial, Industrial, Residential, Nonprofit, Schools, Local Government, State Government, Institutional
Eligible Technologies Fuel Cells, Fuel Cells using Renewable Fuels
Active Incentive Yes

Implementing Sector State/Territory
Energy Category Renewable Energy Incentive Programs
Amount Capacity Incentives:

Large systems only (larger than 25 kW): Basic incentive of 1,000/kW + possible 500/kW bonus for systems that provide standalone capability to serve essential services
Performance Incentives:
All systems: 0.15/net kWh





Eligible System Size None specified, though incentives are capped and generally not available for capacity in excess of a customer's load

Equipment Requirements Large Fuel Cell systems must be designed to provide grid independent operation to supply priority loads during periods of grid outage.

Systems must be new and NYSERDA approved;
Performance metering required for all systems (standards are higher for large systems)


Expiration Date 12/31/2015 (or until funds are exhausted)

Funding Source RPS surcharge

Installation Requirements Must comply with all applicable national, state, and local code, permitting, and emission standards


Maximum Incentive Total Incentives:

Large systems (larger than 25 kW): 1 million
Small systems (up to 25 kW): 50,000
Capacity Incentives:
Large systems only (larger than 25 kW): 200,000 for basic capacity incentive, 100,000 for bonus capacity incentive
Performance Incentives:
Large systems (greater than 25 kW): 300,000 per year per project site
Small systems (up to 25 kW): 20,000 per year per project site
Small systems (up to 25 kW): 20,000 per year per project site


Ownership of Renewable Energy Credits Not specifically addressed, but exports of energy to locations outside of NY are prohibited; Methane destruction credits earned by systems fueled with landfill gas, biogas, and anaerobic digester gas are retained by the owner.


Program Budget Large Fuel Cells: $21 million ($3.5 million annually through 2015)

Small Fuel Cells: $600,000 ($100,000 annually through 2015)





Terms Performance incentive payments may be paid for up to three years; systems must have an annual capacity factor of 50% or greater to be eligible for performance incentives
Program Administrator New York State Energy Research and Development Authority
Website http://www.nyserda.ny.gov/Funding-Opportunities/Current-Funding-Opportunities/PON-2157-Renewable-Portfolio-Standard-Customer-Sited-Tier-Fuel-Cell-Program-small.aspx
Date added to DSIRE 2008-01-18
Last DSIRE Review 2014-09-15



References DSIREDatabase of State Incentives for Renewables and Efficiency[1]


Summary

Note: ''The eligibility requirement was revised in October 2013 which requires large fuel cell systems to provide grid independent operating to priority loads** during periods of grid outage.


Under PON 2157 The New York State Energy Research and Development Authority (NYSERDA) offers incentives for the purchase, installation, and operation of customer sited tier (CST, also called "behind the meter") fuel cell systems used for electricity production. Because such systems will help fulfill the CST component of the state RPS requirement, eligibility for incentives is generally limited to customers who pay the RPS surcharge on their electricity bills. Exceptions to this rule may be made on a case-by-case basis for projects that demonstrate significant public benefits consistent with program objectives. There are no minimum or maximum size limits for projects, though incentives will generally be granted only for installed capacity not exceeding the customer's electrical load. Exceptions to this rule may be made on a case-by-case basis and participants are permitted to install excess capacity at their own expense.

Incentive levels and limitations vary by system size. Bonus capacity incentives are available for large projects that provide secure/standalone capability at sites of Essential Public Services (e.g., police stations, hospitals, public utilities). Performance incentives can be received for up to 3 years for systems with an annual capacity factor of 50% or greater. The total value of incentives is capped at $50,000 for systems of up to 25 kilowatts (kW) and at $1 million for larger systems. The incentive amounts offered for different types of systems are as follows:

Basic Capacity Incentive: Large systems only, $1,000/kW up to $200,000 per project site

Bonus Capacity Incentive: Large systems only, $500/kW up to $100,000 per project site

Performance Incentive: $0.15 per net kWh, up to $20,000 per project site per year for small systems and $300,000 per project site per year for large systems.

Projects will receive the first half of the basic capacity payment upon system installation and the remaining portion plus any bonus incentives after the system has been commissioned and approved by NYSERDA. The capacity factor for the performance incentive will be determined annually by dividing the net system output by the theoretical maximum output (rated capacity times 8,760 hours/year). The performance incentive will be disbursed annually after performance data have been collected.

All systems, regardless of size, must be new and listed as an eligible fuel cell system by NYSERDA and are subject to post-installation inspection. All systems must have performance monitoring capability and systems larger than 25 kW are required to have high-grade monitoring and sensor equipment (e.g., revenue grade fuel and electricity meters) and remote data collection capability. Owners of small systems must report manually collected data at least every three months to NYSERDA.

Ownership of renewable energy credits (RECs) associated with system electricity production is not specifically addressed. However, the program rules do specify that attributes associated with electricity production by supported systems will be reported as part of the CST of the state RPS program for the life of the system, and participants are prohibited from entering into any transactions which would export energy outside of New York State. In cases where the system is fueled by landfill gas, biogas, or anaerobic digester gas*, methane destruction credits are considered separate from electric power based RPS attributes and may be retained by the owner.


*Fuel cell systems fueled exclusively by anaerobic digester gas (ADG) must apply first to the NYSERDA ADG-to-Electricity Rebate and Performance Incentive program. Such systems are only eligible under the fuel cell program when funds for the dedicated anaerobic digester incentives have been depleted.


    • Priority loads are defined as any load that provides health, safety, and/or economic benefit to the project side, including lighting, space conditioning, food storage, communication and orderly shutdown of industrial process.


Incentive Contact

Contact Name Edward Kear
Department New York State Energy Research and Development Authority

Address 17 Columbia Circle

Place Albany, New York
Zip/Postal Code 12203-6399
Phone (518) 862-1090 Ext:3269


Email ebk@nyserda.ny.gov
Website http://www.nyserda.ny.gov
Contact Name Scott Larsen
Department New York State Energy Research and Development Authority

Address 17 Columbia Circle

Place Albany, New York
Zip/Postal Code 12203-6399
Phone (518) 862-1090 Ext:3208
Phone 2 (866) 697-3732

Email LSL@nyserda.ny.gov
Website http://www.nyserda.ny.gov
     


  • Incentive and policy data are reviewed and approved by the N.C. Solar Center's DSIRE project staff.[1]

References

  1. 1.0 1.1  "Database of State Incentives for Renewables and Efficiency"