New York Value Stack Methodology
Understanding location-specific
compensation for distributed energy
resources in New York.
Energy Value
Capacity Value
Environmental Value
Grid Value
New York introduced the Value
Stack methodology to compensate
distributed energy resources
according to the electricity
and grid benefits they provide.
Rather than relying on a single
compensation rate, the structure
considers multiple components
that vary according to location,
timing, and system value.
Understanding the Value Stack
The historical methodology included
five principal compensation components.
These account for both the electricity
produced and certain benefits provided
to the grid.
Project Eligibility Under the Historical Framework
At the time of the original analysis,
the methodology applied to certain
nonresidential on-site projects
larger than 750 kW AC and qualifying
remote-metered projects.
Qualifying nonresidential
installations above the
stated capacity threshold.
Eligible remote configurations,
including community distributed
generation.
Monetary compensation or
eligible bill credits,
depending on the arrangement.
Historical Development of Value Stack Capacity
New York experienced significant
growth in community solar and
Value Stack installations during
2018 and 2019.
Development slowed in 2020 and
2021 amid pandemic-related and
supply-chain disruptions.
solar DER capacity, 2015–2021.
Original DECH chart.
The Project Development Pipeline
The original analysis identified
a Value Stack project backlog
exceeding 2,000 MW as of
January 2022.
MW in Historical Project Backlog
January 2022
Strong Development Period
Slower Project Completions
The Value Stack methodology
connected distributed energy
compensation to multiple
grid and electricity benefits,
supporting a wider range
of project opportunities.
Historical market observations
through January 2022.
Current program rules and
compensation should be
evaluated separately.
