Grid Connected Solar Electric or
Photovoltaic (PV) Systems

NYSERDA’s Photovoltaic (PV) programs are designed to develop and strengthen New York's supply and service infrastructure, reduce barriers to installing PV, and build market demand for PV. NYSERDA administers the New York Energy $mart^SM program, designed to support certain public benefit programs during the transition to a more competitive electricity market.

Grid-connected PV power offers consumers both economic and environmental advantages. Where utility power is available, consumers can use a grid-connected PV system to supply a portion of the power they need while using utility-generated power at night and on very cloudy days. When the PV system supplies power to the grid as well as to a specific building or piece of equipment, the utility becomes a storage device or battery for PV-generated power.

Hundreds of homeowners and businesses in New York have grid-connected PV systems. System owners like the fact that the system reduces the amount of electricity they purchase from the utility each month. PV is also a clean and pollution-free energy source that can reduce New York’s dependence on foreign sources of oil.

While residential, grid-connected PV systems (10 kilowatts or less) can provide most of a home’s electric needs, they may also generate more electricity than needed. The electricity generated by the PV system can be used on site or fed through a meter back into the utility grid. For example, if a PV system is generating at near its rated output and a system owner is on vacation or not home during the day, a system will typically be producing more electricity than is needed for a given time period and that excess can be “sold” back to the utility. At the end of the month, a credit for electricity sold is deducted from charges for electricity purchased. Currently, New York utilities are only required to buy back excess electricity from residential PV systems that are 10 kilowatts or less.

When a home or business requires more electricity than the grid-connected PV array is generating (for example, in the evening), the need is automatically met by utility power.

A grid-connected PV system is connected to the utility system or grid through an interconnection agreement with your utility company. The interconnection agreement sets the terms and conditions under which a PV system can be safely connected to the grid and outlines metering arrangements (net metering) for your PV system. Only grid connected PV systems are eligible for financial incentives and assistance under NYSERDA’s for PV incentive program.

That is because NYSERDA’s funding for the PV incentive program comes from a charge on electricity sales assessed to people on the grid or utility system through the System Benefit Charge. As a result, that funding can only be used for grid-connected PV systems.

Grid-Connected PV System Costs

As of January 2005, just over 190 incentive reservations were approved under NYSERDA's small PV incentive program. The small PV incentive program is a first-come, first-served incentive program that provides incentives to customers through eligible installers for utility interconnected (grid-tied) systems 50 kilowatts or less.

While the technology being installed is fairly standard and each system must meet all NYSERDA program requirements, each individual system has to accommodate any unique design or installation needs to meet customer demands, site conditions, application requirements (roof or ground mounted), etc.

The chart below provides a summary of system sizes and costs (averages and ranges) for systems installed under NYSERDA's PV incentive program to date. These figures should be used as a guide. An eligible installer will be able to provide you with a specific cost estimate based on your needs and requirements. Be sure to get at least three estimates from three installers. The Clean Power Estimator is also a useful tool in getting more information about typical system costs and benefits.

*Includes ENERGY STAR homes
Note: All estimates are subject to change as additional incentive reservations are approved.

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© 2004 New York State Energy Research and Development Authority