June 5, 2025
The New York State Energy Research and Development Authority (NYSERDA) offers multiple incentive programs to promote the development of renewable energy across the state. For each of the following programs, this resource includes a high-level overview and a detailed look at the prevailing wage compliance requirements that apply:
• NY-Sun Solar PV Incentive Program
• Retail and Residential Energy Storage Incentive Program
• Bulk Energy Storage Incentive Program
• Large-Scale Renewables Program
Overview:
The NY-Sun Solar PV Incentive Program is an Adjustable Block Program, designed to encourage new solar development by offering financial incentives. Through the program, the state agrees to buy the Renewable Energy Credits (RECs) generated by approved solar projects at a fixed price. The program is available to both residential and community solar projects.
As more projects are submitted and approved, each “block” of capacity fills up, and the REC price adjusts down for future applicants.
Blocks:
There are three primary regions ("blocks") for incentives under the NY-Sun Solar PV Incentive Program:
(1) Con Edison Region: This encompasses New York City and Westchester County, areas served by Con Edison.
(2) Long Island Region: This covers Nassau and Suffolk counties, areas served by PSEG Long Island.
(3) Upstate Region: This includes all areas of New York State outside the Con Edison and Long Island regions.
Each region is further segmented into blocks based on market sectors such as residential, small nonresidential, and large nonresidential systems. These blocks have specific MW targets and associated incentive rates. Please see the useful resources section below for the most up to date information.
Prevailing Wage Compliance Implications:
The following types of projects are mandated to comply with prevailing wage requirements:
(1) Solar projects where the interconnection application was submitted after April 14, 2022 and are 1 MW (AC) or greater in maximum generating capacity.
(2) Solar projects receiving a NY-Sun incentive credit that are 1 MW (AC) or greater in maximum generating capacity and initially submitted their utility interconnection application before April 14, 2022 who have selected to opt-in to prevailing wage requirements so that they may receive the Prevailing Wage Adder (described in detail below).
(3) Solar projects located in New York State (regardless of whether they receive an NY-Sun incentive) with a maximum generating capacity of 1 MW (AC) or greater and the renewable energy credits (RECs) which are produced are procured by a public agency.
(4) Solar projects that are either directly procured by a government agency or have a total project cost exceeding $5 million, and at least 30% of construction costs funded by public sources.
Prevailing Wage Adder:
Projects mandated to comply with prevailing wage requirements are eligible for the following Prevailing Wage Adder credits. The Prevailing Wage Adder credits differ by region:
• Con Edison Region: $0.20 per Watt
• Upstate Region: $0.125 per Watt
• Long Island Region: Not Eligible for Prevailing Wage Adder
Prevailing Wage Compliance Guidance:
For projects mandated to comply with prevailing wage requirements, the NY-Sun participating contractor must:
(1) Either enter into a Project Labor Agreement (PLA) or pay the proper, local prevailing wage to all laborers, workmen, mechanics, etc. Prevailing wages apply to all on-site construction activities, and the construction period starts on the first day of site work ends when the utility grants "Permission to Operate". According to the NY-Sun official website, construction activities include, but are not limited to, the clearing, grubbing, grading, staging, installation, erection and placement of the facility, the energy storage component of the facility, electrical interconnection, as well as start-up and commissioning of the facility during the construction period.
(2) Collect accurate and truthful certified payroll records for all direct labor and subcontractors.
(3) Have an authorized representative from the participating contractor verify (on a quarterly basis) that the contractor has obtained copies of certified payroll records for all relevant workers.
(4) Obtain a quarterly certification by a New York State licensed Certified Public Accountant to verify that the certified payroll records for the project demonstrate compliance with prevailing wage requirements during the construction period.
(5) Submit all quarterly certifications (from steps 3 & 4) to NYSERDA upon invoice for the project's Commercial Operation payment.
(6) Starting on December 30, 2024 all contractors and subcontractors working on a project with prevailing wage requirements must be registered with the New York Department of Labor (NY DOL). The link to the NY DOL is listed below.
Penalties for Non-Compliance
If a contractor/subcontractor fails to comply with any of the requirements outlined above, they may lose all NY-Sun incentives associated with the relevant project, and/or lead to the contractor/subcontractor’s suspension from the NY-Sun Program.
Additionally, projects submitted to the NY-Sun Program on or after July 1, 2024 are legally bound by NYS Labor Law Article 8, which gives the NY DOL the authority to enforce penalties under Labor Law § 218.
The following penalties may be enforced for failing to pay prevailing wages:
(1) The contractor/subcontractor must repay all underpaid prevailing wages and fringe benefits to the appropriate workers, plus interest – calculated annually at the rate set by the Superintendent of Financial Services under Section 14-a of the Banking Law (16% per annum as of 2025) – from the date the wages were due until the date they are paid.
(2) The contractor/subcontractor must pay a liquidated damages fee equal to 100% of underpaid prevailing wages to the appropriate workers.
(3) The contractor/subcontractor must pay a civil penalty to the NY DOL in an amount of up to twice the total underpaid prevailing wages.
For violations other than failure to pay prevailing wages (such as failure to obtain required documentation), the following penalties may apply:
(1) The contractor/subcontractor must pay a civil penalty to the NY DOL equal to the amount of $1,000 for a first offense, $2,000 for a second offense, and $3,000 for any subsequent offenses.
When determining the amount of the penalty, the NY DOL will take into account factors such as the size of the contractor/subcontractor's business, whether the contractor/subcontractor had a genuine reason to believe they were following the law, how serious the violation was, and whether the contractor/subcontractor has a history of similar violations.
Useful Resources:
• NY-Sun Resources for Contractors
For the most up-to-date information, refer to the individual block dashboards (linked below). These provide real-time updates on block status, incentive rates, and remaining capacity to help contractors and stakeholders with planning and application processes:
Overview:
The Residential and Retail Energy Storage Incentive Program is an Adjustable Block Program managed by NYSERDA to accelerate the deployment of distributed energy storage systems across New York. The program provides financial incentives for both residential and commercial-scale storage projects, supporting the state’s goal of 1,500 MW of retail storage by 2030. Incentives are awarded per installed kilowatt-hour (kWh) of usable energy capacity and decrease over time as each block is filled.
The program includes two major tracks:
(1) Retail Storage (projects up to 5 MW AC, commercial/industrial customers)
(2) Residential Storage (behind-the-meter, paired with or without solar)
Incentives are available for projects interconnected to utility distribution systems or operating behind the meter, and vary by region.
Blocks:
There are three primary regions for incentives under the Residential and Retail Energy Storage Incentive Program:
1) New York City: Projects located within the five boroughs of New York City.
(2) Con Edison – Westchester: Projects located in Westchester County, served by Con Edison.
(3) Rest of State (ROS): Projects located anywhere else in New York State outside of New York City and Westchester.
Each region uses a declining block structure, where incentive levels decrease over time as each block is filled. Incentives are awarded based on installed energy capacity (in kWh), and separate block levels are established for each region. Projects that apply earlier receive higher incentive rates, while later applicants fall into lower-paying blocks as funding is used up. Please refer to the Residential and Retail Energy Storage Incentive Dashboard (linked below) for the most recent pricing information for each block.
Prevailing Wage Compliance Implications:
The following types of projects are mandated to comply with prevailing wage requirements:
(1) Energy projects that are 1 MW (AC) or greater in maximum rated capacity
(2) Energy projects located in New York State with a maximum generating capacity of 1 MW (AC) or greater and the renewable energy credits (RECs) which are produced are procured by any public agency.
(3) Energy projects that are either directly procured by a government agency or have a total project cost exceeding $5 million, with at least 30% of construction costs funded by public sources.
Exceptions to Prevailing Wage Requirements:
Projects in the Residential and Retail Energy Storage Incentive Program are exempt from prevailing wage or Project Labor Agreement (PLA) requirements if they are under 1 MW (AC) in size or were awarded incentives from an early block, prior to the prevailing wage requirement cutoff. NYSERDA administers the program using a declining block structure, and only projects in later blocks are subject to prevailing wage requirements.
The exemption applies to projects awarded incentives in blocks before the following thresholds:
• Block 5 for Rest of State Block
• Block 6 for New York City Block
• Block 2 for Con Edison - Westchester Block
Projects that either fall below the capacity threshold or were awarded incentives prior to these block-level cutoffs are not required to comply with prevailing wage requirements.
Prevailing Wage Compliance Guidance:
For projects mandated to comply with prevailing wage requirements, the participating contractor must:
(1) Either enter into a Project Labor Agreement (PLA) or pay the proper, local prevailing wage to all laborers, workmen, mechanics, etc. Prevailing wages apply to all on-site construction activities, and the construction period starts on the first day of site work ends when the utility grants "Permission to Operate".
(2) Collect accurate and truthful certified payroll records for all direct labor and subcontractors.
(3) Have an authorized representative from the participating contractor verify that the contractor has obtained copies of certified payroll records for all relevant workers.
(4) While not explicitly required under the Residential and Retail Energy Storage Incentive Program, NYSERDA may request a quarterly certification by a New York State licensed CPA to confirm prevailing wage compliance. This may also be required under the terms of specific funding agreements.
(5) Starting on December 30, 2024 all contractors and subcontractors working on a project with prevailing wage requirements must be registered with the New York Department of Labor (NY DOL). The link to the NY DOL is listed below.
Penalties for Non-Compliance
Failure to comply with the requirements outlined above may result in enforcement by the New York State Department of Labor and may jeopardize project eligibility for incentive payments.
Useful Resources:
• Residential and Retail Energy Storage Incentive Program Webpage
• Residential and Retail Energy Storage Incentive Dashboard
Overview:
The Bulk Energy Storage Incentive Program (the "Program") is a proposed initiative managed by NYSERDA to accelerate the deployment of large-scale energy storage systems (greater than 5 MW AC) across New York. The program provides financial incentives supporting the state’s goal of 3,000 MW of new large-scale energy storage by 2030.
NYSERDA plans to issue its first Index Storage Credit Request for Proposal (ISCRFP25-1) by June 30, 2025. Under this solicitation, project developers will submit a “strike price,” representing the minimum revenue per megawatt-hour (MWh) their project requires to remain financially viable. For awarded projects, NYSERDA will compare this strike price to the actual reference price earned in the wholesale market. If the reference price falls short, NYSERDA will pay the developer the difference, creating a predictable revenue floor while aligning incentives with market performance.
Eligibility Requirements for Projects:
The following criteria must be met in order to participate in the Bulk Energy Storage Program:
(1) The project must use an energy storage technology that operates via electrical, chemical, mechanical, or thermoelectric processes.
(2) The project must be capable of storing electricity for future discharge to the grid.
(3) The project must have a minimum capacity of 5 MW AC.
(4) The project must be electrically interconnected to the transmission, sub-transmission, or distribution network.
(5) The project must not have received, be receiving, or plan to receive funding from NYSERDA’s Market Acceleration Bridge Program, Tier 1 REC/OREC programs (with limited exceptions), or the Utility Bulk Dispatch Rights Program.
Prevailing Wage Compliance Guidance:
All projects participating in the Bulk Energy Storage Incentive Program are required to pay the New York State (NYS) Prevailing Wage to all construction workers during the construction of the project. Additionally, quarterly certifications completed by a New York State-licensed CPA are required.
Given that the Program is still in a proposed stage, the prevailing wage requirements may be further elaborated on in the future, but as of now, guidance states that the requirements will build on existing language from NYSERDA's Large-Scale Renewables Program. Please see the Large Scale Renewables Program below for more information.
Useful Resources:
• Bulk Energy Storage Incentive Program Website
• Bulk Energy Storage Final Implementation Plan
Overview:
The Large-Scale Renewables (LSR) Program supports New York’s clean energy targets by contracting renewable energy from utility-scale projects through competitive solicitations. Eligible technologies include solar, wind, hydroelectric, and certain fuel cell and biomass systems.
Projects must be located in New York State, deliver power into the NYISO grid, and begin commercial operation on or after January 1, 2015. To participate, developers must first apply for and receive Tier 1 eligibility certification (for a full breakdown of eligibility criteria, please see the LSR RES Tier 1 Eligibility and Certification Guidelines document linked below).
Once approved for Tier 1 status, projects can submit bids during NYSERDA’s solicitations, proposing a fixed price per Renewable Energy Certificate (REC). Winning projects enter into long-term contracts (typically 20 years) where NYSERDA agrees to purchase Tier 1 RECs based on the project's renewable energy generation.
All awarded projects are subject to prevailing wage requirements under New York Labor Law §224-d.
Potential Prevailing Wage Requirement Exceptions
While uncommon, there are some potential exceptions to prevailing wage requirements for projects participating in the LSR Program:
(1) Projects where all construction work is performed under a Project Labor Agreement (PLA) may be exempt from prevailing wage requirements.
(2) Renewable energy projects with a maximum generating capacity of less than 1 MW (AC). That said, most projects awarded in Tier 1 solicitations tend to be 5 MW (AC) or larger, so this exception typically doesn’t apply.
Prevailing Wage Adder:
For projects mandated to comply with prevailing wage requirements are eligible for the following Prevailing Wage Adder credits. The Prevailing Wage Adder credits differ by region:
• Con Edison Region: $0.20 per Watt
• Upstate Region: $0.125 per Watt
• Long Island Region: Not Eligible for Prevailing Wage Adder
Prevailing Wage Compliance Guidance:
For projects mandated to comply with prevailing wage requirements, the participating contractor must:
(1) Either enter into a Project Labor Agreement (PLA) or pay the proper, local prevailing wage to all laborers, workmen, mechanics, and subcontractors. Prevailing wages apply to all on-site construction activities, and the construction period starts of the first day of site work ends when the utility grants "Permission to Operate". According to the NY-Sun official website, construction activities include, but are not limited to, the clearing, grubbing, grading, staging, installation, erection and placement of the facility, the energy storage component of the facility, electrical interconnection, as well as start-up and commissioning of the facility during the construction period.
(2) Collect accurate and truthful certified payroll records for all direct labor and subcontractors.
(3) Have an authorized representative from the participating contractor verify (on a quarterly basis) that the contractor has obtained copies of certified payroll records for all relevant workers.
(4) Register with NY DOL: As of December 30, 2024, all contractors and subcontractors working on covered projects must be registered with the New York State Department of Labor.
Enforcement for Tier 1 REC projects falls under the New York State Department of Labor, Bureau of Prevailing Wage. NYSERDA incorporates prevailing wage obligations into its REC contracts but does not review or manage wage compliance documentation unless specified.
Penalties for Non-Compliance
Under New York Labor Law § 224-d, failure to pay prevailing wages correctly can result in enforcement actions pursuant to Article 8, Section 220‑b. These enforcement measures may include:
(1) The contractor/subcontractor must repay all underpaid prevailing wages and fringe benefits to the appropriate workers, plus interest – calculated annually at the rate set by the Superintendent of Financial Services under Section 14-a of the Banking Law (16% per annum as of 2025) – from the date the wages were due until the date they are paid. Otherwise, financial incentives from the LSR Program will be withheld to cover the back pay plus interest.
(2) The contractor/subcontractor must pay a civil penalty of up to 25% of the total amount of underpaid prevailing wages. For state-level projects, the penalty is paid to the New York State Labor Commissioner and deposited into the state treasury. For city or local projects, the penalty is paid to the local fiscal officer, such as the city comptroller, and deposited into the city’s treasury.
(3) Contractors/subcontractors (or related parties) who receive two final rulings within a given six-year period for willfully underpaying prevailing wages are barred from public work contracts in New York State for five years starting from the second ruling. If either violation involves falsified payrolls or kickbacks of wages, the five-year ban starts after the first ruling.
Useful Resources:
