A battery energy storage system can maximize cost savings and greenhouse gas reductions by dispatching energy to take advantage of energy incentives, including:
Increase your portfolio’s value with immediate energy savings and longer-term revenue with battery energy storage.
Peak Power works with a wide range of commercial and industrial building owners, energy managers, and sustainability managers to reduce NYISO ICAP costs and scope 2 emissions. Our deep well of energy expertise ensures that any project we undertake is based on a strong business case in the New York State energy market.
Effectively reduce demand charges and sell energy back to the grid
Make existing electricity infrastructure stronger and avoid costly outages or utility upgrades
Reduce your facility’s emissions and grid reliance on fossil fuels
Federal, state, and local governments have created a vast network of financial incentives to power the shift to Distributed Energy Resources (DERs). But these incentives are hard to navigate and complex to understand. In states like New York, strong government support for clean energy has created large markets for renewables, but that also means there are even more incentives to navigate.
Furthermore, The New York Installed Capacity Market (ICAP) was developed to ensure that electricity supply will meet the demands of the market. The way this works, the more electricity your facility uses during demand peaks, the more you contribute to the infrastructure requirements, and the more your business pays in demand charges or time-of-use rates.
With the right strategies, commercial and industrial players can reduce ICAP charges, unlock profitability, tap into multiple value streams and incentives, and make progress toward net zero.
We’ve put together this New York Energy Incentives Guide so you can get a scan of the financial benefits that could be available to your business and understand how to use them to improve profitability. Inside this guide, you'll learn about:
📘 State-wide and utility-level incentives, including an overview of the many demand response programs you can value stack
📘 A breakdown of two key federal incentives: the updated Investment Tax Credit (ITC) and the Modified Accelerated Cost Recovery System (MACRS)
📘 Helpful links, resources, and tips to help you navigate the complex world of energy incentives
To ensure reliability, both the System Operator (NYISO) and the Load Serving Entity (Utility) need to maintain generation and distribution capacity to meet their peak demand obligations. These costs are passed on to customers via demand-based charges, whether assessed as contribution to system coincident peak (ICAP tag) or individual monthly non-coincident peak (Demand Charge). In ConEd, the Commercial System Relief Program (CSRP) aims to reduce peak demand at the network level by calling on customers to reduce energy use during their respective assigned call windows.
Four energy storage systems were installed in four different commercial buildings in Westchester, New York – one of the state’s first Virtual Power Plant demonstration projects. The project reduces electricity costs from ICAP and Demand Charges and participates in NYISO and ConEd demand response programs.
This project employs a shared-savings model. GHP (owner) and Peak Power split the utility bill savings and market revenues from the operation of the battery. GHP takes on little to no risk while receiving energy cost savings, and Peak Power retains a portion of the revenue in exchange for installing, maintaining, and operating the system.
$495,742 Energy cost savings to date
Additionally, GHP gains a revenue stream in addition to the savings achieved with better building demand charge management. Con Edison, the electric utility for this site, provides funding for this system to reduce peak demand during certain windows of time through the Demand Management Program. By participating in the program, the project received an incentive from Con Edison, which reduced the total project cost.
Nuno Duarte, Vice President of Professional Services at BGIS