A team of Con Edison employees standing near a large solar panel installation

Private Generation Tariffs

Value of Distributed Energy Resources

Developer Workshop Webinar Presentation
NYSERDA Value of Distributed Energy Resources Information
Outcome of Value of Distributed Energy Resources Order: Explanation of impacted technologies and which projects receive Net Energy Metering vs. Value of Distributed Energy Resources Value Stack tariffs.

Value Stack Overview

Components of Value Stack: Definition and description of all potential credits.
Timing of Value Stack Components: Schedule explaining if and when the rates for each component are updated.
Value Stack Calculations: Explanation of how each credit is calculated.

Rates and Eligibility

Value of Distributed Energy Resources Statement: current and historical Value Stack rates.
Con Edison Value of Distributed Energy Resources Tranches as of September 15, 2018
New York Independent System Operator Day-Ahead Prices: Tool to identify Location Based Marginal Price
Con Edison 3-Year Historical Average Full Service Electric Rates for SC1 and SC2

Legacy Credits For Your Excess Energy

Residential customers: If you’re a residential customer with solar installed before March 10, 2017 (Grandfathered NEM), your excess solar credits are cashed out every January by default. You can choose to cash out any month you’d like, but you can only change your cash-out month once. Most customers choose to cash out their solar banks during a month when they anticipate having the fewest solar credits because the cash-out value–the avoided cost of energy–is less than the value of applying your solar credits to your energy consumption. For this reason, it is recommended that you monitor your energy use for a full year before changing your cash out month.

If you’re a residential customer with solar installed after March 10, 2017 but before January 1, 2020 (Phase 1 NEM), your credits carryover month-to-month and year-to-year.

Micro-Combined-Heat-and-Power customers: If you have micro combined heat and power, fuel cell, or farm waste electric generating equipment for which an interconnection application was completed by July 17, 2017, all excess kilowatt hours of energy sent to the grid are “cashed out” after every billing cycle. We do this by multiplying the excess kilowatt hours by the avoided cost of energy. The avoided cost of energy is determined by the average wholesale price of energy for the year, increased by 6.6 percent. The resulting dollar value is applied to your account as a credit and your kilowatt-hour bank is reset to zero.

Demand-billed customers: If you’re a demand billed customer with solar or wind electric generating equipment for which an interconnection application was  completed by July 17, 2017, all excess kilowatt hours of energy sent to the grid are “cashed out” after every billing cycle. We do this by multiplying the excess kilowatt hours by a rate approximate to your retail rate for that month. The resulting monetary credit is applied to the account up to the total amount of other charges (i.e. basic service charges and demand charges) in the billing period. Any credit in excess of the billing period’s other charges is converted back to kilowatt hours and carried forward to future cycles.

Energy-only customers: If you’re an energy-only customer with solar or wind electric generating equipment for which an interconnection application was completed by July 17, 2017, all excess kilowatt hours of energy sent to the grid are carried forward and used to offset energy consumption in future billing cycles. There is no cash out.

Definitions of Electric and Gas Service and Billing for Private Generation Customers

Tariff for Net Metered Customers only: Rider R, page 70: The rules and rates for customers with private generation who qualify for credits.

Tariff for all other customers using private generation to sell electricity, SC-11, page 83: The rules if you sell power to Con Edison but do not qualify for private solar credits. This service is called “buy back” because Con Edison purchases your energy.

Tariff for emergency export program, General Rule 8, page 79: The rules for emergency export to the company's distribution system. This category applies only if your generation is connected at the high-tension level, and is limited to generation in excess of your load.

Tariff for all customers using private generation to support their own load: Standby Service, page 155: The rules if you use private generation strictly to support some or all of your own load, and do not sell any to Con Edison. This service is called “standby” because Con Edison must be prepared to support all of your load in the event that private generation is not available.

Targeted Exemption: A multi-year exemption to Standby rate for Distributed Generation customers looking to install new combined heat and power or battery systems. Please review the tariff for further details including participation requirements.

Distributed Generation customers applying for Targeted Exemption for their NEW combined heat and power or battery installations should indicate it on their interconnection application in PowerClerk and fill out Form G accordingly during the interconnection process. Form G will be provided via the interconnection platform, PowerClerk.

Standby Pilot Rate Program (Rider Q): A pilot rate program that allows options for Distributed Generation customers to:

  1. Choose their own contract demand
  2. Select a different As-Used demand period
  3. Receive credits for consistent export of power via the buy-back (SC-11) rate.

Please review the tariff for further details including participation requirements.

New Distributed Generation customers applying for the Standby Pilot Rate Program should indicate it on their interconnection application in PowerClerk and fill out Form G accordingly during the interconnection process.

Existing Standby Service customers applying for the Standby Pilot Rate Program must fill out a new Form G and email it to DGExpert@coned.com with the subject line: Standby Pilot Rate program – Existing customer. You will receive a response from the Company verifying your program participation.

Rider H Commercial, page 37

Rider J Residential, page 57

Steam tariff SC-4, page 24: For customers who install combined heat and power private generation in Con Edison’s steam service territory and use Con-Edison-supplied steam for backup or supplemental use.

Offset Tariff FAQ

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