New York’s newly finalized budget for 2027 is prioritizing new solar construction and updating its utility grid. Gov. Kathy Hochul and the New York State Legislature approved the state’s budget for fiscal year 2027, which will include $200 million in funding for NYSERDA’s NY-Sun program for rooftop and community solar, and it will also invest in updating the grid to streamline utility interconnections.
A commercial solar installation in New York. Credit: GreenSpark
“New York’s commitment to expanding rooftop and community solar sends a powerful signal that distributed energy is essential to building a more affordable, reliable and resilient grid,” said Ruthie DeWit, Northeast state affairs director, SEIA. “By investing in NY-Sun and advancing forward-looking interconnection reforms, state leaders are removing barriers that have slowed deployment while creating new opportunities for families, businesses, and local communities to benefit from the savings solar and storage provide.”
The funding for NY-Sun could result in 1 GW of new solar capacity in the state. Interconnection updates will require utilities to develop “flexible interconnection” programs to use smart grid controls for managing distributed generation projects. NYSEIA conducted a study funded by NYSERDA to test the viability of smart grid control management, and reported that flexible interconnection could increase community solar capacity in Upstate New York by 97%.
“By doubling down on distributed solar, New York is demonstrating that clean energy and affordability can go hand-in-hand … We look forward to working closely with our colleagues at the NY Department of Public Service, NYSERDA and the utility companies to implement these impactful interconnection reforms, strengthen the reliability of our grid, and reduce energy costs for all New Yorkers,” said Noah Ginsburg, executive director, NYSEIA.
The state’s budget will also fund efforts among utilities to increase cost transparency, consider distributed energy resources in utility planning and consider wireless alternatives for cost savings on capital projects.
“The inclusion of $200 million in funding for the NY-Sun program in the FY 2026-27 state budget will incentivize community solar development, create jobs with family-supporting wages and benefits and move that state forward in achieving an emissions free future,” said Donato A. Bianco Jr., VP and New England regional manager of Laborers’ International Union of North America.
