New York Governor Andrew M. Cuomo announced $55 million for energy storage including commercial and residential storage projects on Long Island. This program will be launched with an initial rollout of nearly $15 million in incentives from the New York State Energy Research and Development Authority (NYSERDA). According to NYSERDA, energy storage projects supported by this Long Island initiative will advance progress toward achieving New York's target of 3,000 megawatts of energy storage deployed by 2030 — the equivalent to powering 40% of New York's homes.

"With our nation-leading clean energy goals and aggressive strategy to combat climate change, New York continues to set the example of climate leadership for other states across the country," Governor Cuomo said. "These incentives for energy storage will help Long Islanders grow their clean energy economy and create jobs while also improving the resiliency of their grid in the face of more frequent extreme weather events."

The $15 million committed is immediately available to Long Island residents and businesses for commercial and residential projects through NYSERDA's Retail Energy Storage Incentive Program. The remainder of the funds, totaling approximately $55 million, will be allocated within the next three to five years and targeted in a manner to drive down costs and scale up the market for these clean energy technologies. The incentives released will support energy storage installed at customer sites for standalone systems or systems paired with solar.

"As we work to combat climate change and transform our grid, Long Island will play an important role in our energy future," said Lieutenant Governor Kathy Hochul. "This significant funding for energy storage projects will complement our investments in wind and solar, allowing us to meet our ambitious clean energy goals. We know our environment faces a continuing threat, and our work today will create a brighter future for generations to come."

Funding is currently available in the following two categories: commercial incentives and residential incentives.

NYSERDA's Retail Energy Storage Incentive Program will support new grid-connected energy storage systems up to five megawatts of alternating current (AC) connection located either with load behind-the-meter or connected directly to the distribution system. The first block incentive will offer $250 per kilowatt hour (kWh) of energy storage installed. Eligible energy storage systems include chemical, thermal, or mechanical systems compensated under a Public Service Electric and Gas Long Island (PSEG-LI) tariff or load relief program. Eligible systems may be installed alone or paired with on-site generation like solar.

NYSERDA and PSEG-LI are also jointly launching a residential solar-plus-energy storage program that provides new projects in Long Island with an upfront storage incentive through NYSERDA's NY-Sun Program as well as additional compensation through PSEG-LI's Dynamic Load Management (DLM) tariff. The DLM tariff pays customers to reduce the amount of electricity used from the electric grid during hours when the demand for power is highest. NY-Sun will initially release two incentive blocks for new residential solar-plus-storage systems beginning at $250 per kWh of installed energy storage and then declining to $200 per kWh in the second block.

These Long Island energy storage incentives build on the $280 million in incentives announced by Governor Cuomo in April as part of a $400 million investment to achieving New York's energy storage targets and a $250 million commitment the New York Power Authority (NYPA) made in December to accelerate the flexibility of the electric grid by collaborating on grid-scale energy storage projects and addressing market and financing barriers.

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