New York has taken a significant stride towards greater accountability in its burgeoning Community Solar and Community Distributed Generation (CDG) program. In a groundbreaking move, the New York Public Service Commission (NYPSC) approved two out of six proposed Negative Revenue Adjustments (NRAs) for its utilities on July 17, 2025. Additionally, the Commission imposed a $10 bill credit for each time a utility fails to provide a CDG subscriber's bill within 75 days from the end of the CDG host billing period.
Their decision marks a pivotal moment for the more than 224,000 New Yorkers already benefiting from community solar and sets a precedent for other states looking to strengthen their clean energy initiatives.
"The financial penalties set by the NYPSC are historic," said Aviv Shalgi, co-founder and CEO of Solar Simplified. "Not only is the ruling the first of its kind in the nation, but it will also improve utility performance for community solar subscribers, developers, and aggregators alike."
A Collective Victory for Solar Advocates
NYPSC's approval is a testament to the dedicated efforts of a broad coalition of advocates and industry partners. Shalgi, Noah Ginsburg from the New York Solar Energy Industries Association (NYSEIA), Kate Daniel from the Coalition for Community Solar Access (CCSA), Austin Perea (formerly of Arcadia), Louise Gava from Joule, and many others throughout the industry contributed crucial insights and demonstrated unwavering persistence in the drafting of the NRA proposals.
What Was Approved: Addressing Key Pain Points with Financial Penalties
The two approved NRAs directly targeted critical areas of utility service that have historically caused frustration for community solar participants:
Timely Billing: The Commission has imposed a $10 bill credit for each instance a utility fails to provide a CDG subscriber's bill within 75 days from the end of the CDG host billing period. This penalty represents a fundamental improvement, as timely and accurate billing is essential to maintaining subscriber trust and ensuring financial planning.
Prompt Payments: Applying CDG credits to customer bills promptly is crucial, not only for subscribers but also for aggregators and asset owners. Under Net Crediting or Utility Consolidated Billing (UCB) agreements, aggregators and asset owners aren't paid until the subscriber credits appear on the subscriber's bill.
Allocation List Response Time: This measure addresses delays in utilities processing subscriber allocation lists submitted by CDG hosts. Efficient processing of these lists is vital for new subscribers to begin receiving credits promptly and for project owners to manage their subscriber base effectively.
The Commission emphasized that "The benefits of CDG development can only be realized if the billing and crediting of CDG members is performed accurately and in a timely manner."
The Road Ahead: Essential Improvements Still Needed
While these approvals represent a significant "first step," the journey toward a fully optimized community solar experience in New York is far from over. Four other equally essential NRAs were not approved, and their absence leaves critical weak spots in the current system:
Credit Accuracy: Without this, even timely bills can be incorrect, leading to ongoing confusion and potential financial discrepancies for subscribers.
Credit Persistence: This protects against unexpected gaps or dropped credits that can disrupt subscriber savings and erode trust in the program.
Subscriber Start Date Timeliness: Delays in new subscribers receiving credits can lead to confusion and frustration, hindering the program's accessibility.
System Visibility and Data Access: Project owners need access to comprehensive billing and crediting data to troubleshoot issues and effectively serve their subscribers.
These unapproved metrics are crucial for ensuring the integrity and scalability of the community solar program. Without approval, subscribers may continue to face billing errors, unexplained delays, or a lack of transparency, all of which can undermine the program's effectiveness and public confidence.
Setting a National Precedent
The community solar movement continues to grow, empowering more individuals and communities to access the benefits of clean energy. The recent approvals in New York are a significant victory, demonstrating that with continued advocacy and collaboration, a system that truly works better for everyone is within reach. The focus now turns to building on this momentum and pushing for similar legislative advancements in other community solar states, ensuring a transparent, efficient, and equitable clean energy future for all.