New York’s recently finalized 2027 budget prioritizes building new solar and updating the electric grid. Gov. Kathy Hochul and the New York State Legislature have approved the state budget for fiscal year 2027, which will include $200 million in funding for NYSERDAs. NY-Sun rooftop and community solar program, and it will also invest in modernizing the electric 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 strong message that distributed energy is essential to building a more affordable, reliable and resilient electric grid,” said Ruthie DeWit, director of Northeast State Affairs for SEIA. “By investing in NY-Sun and advancing forward-looking interconnection reforms, state leaders are removing barriers that have slowed implementation while creating new opportunities for families, businesses and local communities to take advantage of the savings that solar and storage provide.”
The funding for NY-Sun could result in 1 GW of new solar capacity in the state. Interconnection updates require utilities to develop “flexible interconnection” programs to use smart grid controls to manage distributed generation projects. NYSEIA conducted a study funded by NYSERDA to test the viability of managing smart grid controls, and reported that flexible interconnection could increase community solar capacity in Upstate New York by 97%.
“By doubling down on distributed solar energy, New York is showing 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 utilities to implement these impactful interconnection reforms, strengthen the reliability of our electric grid and lower energy costs for all New Yorkers,” said Noah Ginsburg, Executive Director. NYSEIA.
The state budget will also fund efforts by 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 state budget for fiscal year 2026-2027 will spur community solar development, create jobs with family-sustaining wages and benefits, and move that state forward toward a zero-emissions future,” said Donato A. Bianco Jr., VP and New England Regional Manager of Laborers’ International Union of North America.
