NYSERDA Incentive Programs

Overview & Background

The New York State Energy Research and Development Authority (NYSERDA) offers multiple incentive programs to promote the development 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
• Energy Storage Incentive Program
• Large-Scale Renewables Program

NY-Sun Solar PV Incentive 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 downward 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, with 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 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) 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.

(4) Submit all quarterly certifications (from steps 3 & 4) to NYSERDA upon invoice for the project's Commercial Operation payment.

(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.

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:

Energy Storage Incentive Program

Overview:
The 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 (≤5 MW, 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 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 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 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 of 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 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.

Failure to comply with these requirements may result in enforcement by the New York State Department of Labor and could jeopardize project eligibility for incentive payments.

Useful Resources:

• Residential and Retail Energy Storage Incentive Program

Large-Scale Renewables Program

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 eligiblity 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 partipating 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 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, 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.

Useful Resources:

DSPTCH Reimagines Compliance.


DSPTCH takes a "TurboTax" approach to Prevailing Wage and Apprenticeship Compliance. Our software centric solution drastically reduces costs, provides predictable best-in-class pricing, and radically automates tedium vs industry standard and auditor-centric solutions. Check out the DSPTCH difference today!

Compare Compliance Tools!
Apprentice Tracking

· Track any apprentice program
· DOL Compliance Safeguards
· DOL Direct integrations
· Calculate and monitor wage progression schedules
· Visibility across sub-contractors, asset owners, and apprenticeship sponsors!



Watch the Demo
Prevailing Wages

· Real-time pre-payroll calculations for prevailing wages, fringes, wage-progression schedules
· Ensure accuracy prior to payroll
· Turnkey overtime for every state, province, and federal standard
· Detailed paystub breakdowns for intentional disregard safeguards
· Database of similar projects and wage progression monitoring
· Automated WH347 generation

Watch the Demo
Live Penalty Calcs

· Cross company reporting for all subcontractors
· Unified owner visibility
· Real time calculations for every worker, sub contractor and IRA Cure Provision
· Apprenticeship hours and ratio compliance checks
‍· Worker, Backpay, and Interest Calculations for all hours worked

Watch the Demo
DSPTCH IRA Compliance Software dashboard showcasing job management and worker utilization for Inflation Reduction Act compliance. Features include a job list with readiness status, worker utilization graph by provider, and billable hours breakdown per customer and provider. The dashboard highlights PWA compliance tools and real-time tracking for technician efficiency and productivity.

DSPTCH is the most modern, comprehensive & cost-effective IRA compliance solution

Simplify prevailing wage, apprenticeship, and project tax credit documentation with a single pane of glass.

Solution

The most comprehensive and integrated solution

DSPTCH

Prevailing Wage Tracking software Providers

Audit firms for prevailing wage and apprenticeship

Prevailing wage payroll vendors

Pricing

$

Per active worker per month or
Project month

$
($$$$ after hiring auditors to fulfill additional IRA compliance requirements)

Based on total project value, including materials and logistics

$$$$

Based on monthly retainer + hourly fees + revision audit hours + sub contractors

$$$

Varies hours worked, number of employees, and add-on integrations

Examples
  • DSPTCH
  • LCP Tracker
  • Elation
  • eMars
  • KPMG
  • PWC
  • Alliant
  • Baker Tilly
  • EBacon
  • Points North
  • HCM Tradeseal
  • Payroll4Construction
Turn by Turn Navigation
Largest Industry Workforce Network
Supports Internal Employees

Portal to upload data

$100+/ hr

Migrate Payroll System

Supports External Vendors
Predictable Pricing

Very Predictable, Scales with workers on projects

Increases with total project value (including materials, engineering, and logistics spend), typically requires audit firm to review

Volatile and very unpredictable. Based on retainer fee + hourly rate for support of any sub contractor follow ups

Only supports your company in payroll for prevailing wages, weak integration with benefits providers

Built for the IRA
Allows Apprentice Sponsors and Employers to simultaneously track DOL Logs
Natively tracks Apprentice hours & Wage Progression
Integrates with 100+ Payroll & HRIS systems
Mobile App
Field Forms

Varies

Generates Certified payroll reports

After each sub contractor uploading hours and performs calculations

Each sub contractor submits completed certified payroll forms or specific files

Built for Davis Bacon, adds tedious unnecessary requirements
Turnkey state, federal, provincial overtime

Varies, typically yes

Adopted organically by workers, outside of IRA projects

Manage Apprentices, Wages, Contractors, Forms, and Reporting all in one!

A fully integrated suite that plays nicely with your existing systems.

See the difference DSPTCH provides today!

DSPTCH IRA Compliance Software project overview page for ABC Project, highlighting checklist completion for Inflation Reduction Act compliance. Displays onboarding progress, ongoing maintenance checks, and tax credit compliance status. Includes contractor compliance summaries with completed and failed checks for specific jobs, helping track IRA compliance and prevailing wage obligations in real time.DSPTCH IRA Compliance Software job page for ABC Project Gen Shop displaying apprenticeship labor hours for Inflation Reduction Act compliance. Shows required apprentice labor percentage, hours worked by apprentices versus non-apprentices, and daily labor hour tracking graph. Includes detailed apprentice profiles with verification status, expected wage, hours completed, and wage period, aiding PWA compliance and tracking of apprenticeship requirements.
DSPTCH IRA Compliance Software time card page for employee Brett Johnson, displaying total hours, per diem, wage rate, and hourly rates for Inflation Reduction Act compliance. Shows verified time entries, prevailing wage obligations, pay breakdown, overtime hours, and total outstanding obligations. Includes approval history and links to payroll actuals, ensuring accurate tracking for IRA compliance and prevailing wage calculations.

Real Time Obligation and Expectation Payroll Calculations

Understand prevailing wage, fringe, wage progression schedules, and per diem expectations before running payroll! Although this seems obvious, other tools simply validate payroll in the rear-view mirror. That create issues, restitution payroll, backpay, and interest obligations. DSPTCH allows you and your sub contractors avoid issues entirely.

Reconcile pay requirements to the penny

DSPTCH integrates directly with 100+ payroll systems to minimize headaches and ensure business continuity. From there, we provide rich, deeply detailed breakdowns of every single line item a worker is paid and the calculations for compliance. This ensures all sub contractors are providing the level of detail required to avoid intentional disregard and the type of precision that many payroll systems simply don't support today.

Ensure Fringe compliance and automate subcontractor calculations

Our robust calculations compute accrue fringe benefits alongside calculate exact Bona Fide Fringe for every worker on site. This avoids countless hours of reconciliation, manual auditor reviews, and mountains of documentation through direct payroll syncs.

It's 2025, it's time for a modern PWA solution.

DSPTCH IRA Compliance Software time card actuals page for employee Brett Johnson, providing a down-to-the-penny breakdown of wages, earnings, taxes, retirement contributions, insurance deductions, and health benefits. Includes detailed prevailing wage breakdowns, overtime calculations, per diem, and tax contributions to ensure accurate reporting for Inflation Reduction Act compliance and prevailing wage obligations.

Reconcile real time actuals and automatically generate certified payroll reports

DSPTCH real time payroll syncs (with 100+ payroll systems natively supported) automatically provide detailed reconciliations with wage, fringe, per-diem, and company policy accruals. With that in place, DSPTCH directly and automatically generates certified payroll reports for every single worker as soon as payroll is run. These direct integrations short-circuit countless audit requirements by ensuring accuracy from the onset.

IRA compliance has never been more streamlined and efficient.

DSPTCH aims to empower the future of work.

Let’s get started

Join the largest network in the industry!

DSPTCH Web
DSPTCH Mobile   
Let's work together, schedule a demo today!