On August 17, 2026, the New York State Public Service Commission (PSC) issued an order aimed at making distributed energy project development more predictable and transparent. The order revises New York State’s Standardized Interconnection Requirements (SIR) in direct response to concerns raised by solar and energy storage developers over the past two years. The changes focus on three critical areas: (1) cost transparency, (2) cost certainty, and (3) interconnection transparency.
Enhanced Cost Transparency Through Annual Public Reporting
Starting March 31, 2027, New York State’s major utilities will be required to publish detailed cost matrices on their distributed energy resource (DER) interconnection portals, breaking down the actual costs of equipment and upgrades required for typical interconnection projects. These matrices must be updated annually and will become the foundation for all future cost estimates, ensuring developers can rely on consistent, publicly vetted pricing information when planning projects. The PSC is also now requiring utilities to provide supporting documentation that identifies the actual costs of upgrades completed for projects interconnected in the prior calendar year, categorized by upgrade and equipment type—in accordance with the Accelerate Solar for Affordable Power (ASAP) Act, which was signed into law on May 28, 2026. This new annual cycle of disclosure and stakeholder review replaces what some developers viewed as an opaque, utility-specific estimating process.
Increased Cost Certainty for Complex Projects
Recognizing that developers need financing-grade cost estimates to move projects forward, the PSC directed utilities to develop a new option for applicants who require higher-confidence cost projections. By January 15, 2027, utilities must file with the PSC proposals identifying methods they will use to deliver enhanced cost estimates when developers request them. While the PSC declined to impose a cap on developers’ payment obligations or establish a rigid standard for estimating costs, as some industry groups had requested, the order establishes several new accountability measures, including that NYS Department of Public Service (DPS) staff and the utilities periodically assess the consistency of cost estimates and actual project costs.
Improved Interconnection Transparency
The PSC balanced calls for greater interconnection timeline oversight with practical administration, choosing targeted transparency measures over the extensive regulatory review process some stakeholders had proposed. Rather than requiring PSC approval of each utility’s annual cost matrix, the revised interconnection process leverages the existing Interconnection Technical Working Group as the forum for stakeholder input. The PSC found that utilities currently complete over 95 percent of studies within the 100-day extended timeframe established by the SIR and therefore declined to impose additional performance metrics or financial penalties at this time. However, starting in 2027, utilities must annually file data indicating the number of business days taken to complete a Coordinated Electric System Interconnection Review (CESIR) and identifying the duration of any extension agreed upon under the SIR.
These changes mark a significant evolution in New York State’s approach to distributed energy interconnection—one that acknowledges the need for cost predictability while maintaining the state’s commitment to prudent utility management and ratepayer protection.
If you have any questions regarding the content of this alert, please contact Brenda Colella, Regulatory Practice Group leader and Regulatory Practice Area co-chair, at bcolella@barclaydamon.com; Dan Krzykowski, associate, at dkrzykowski@barclaydamon.com; Matthew Gino, associate, at mgino@barclaydamon.com; or another member of the firm’s Regulatory Practice Area.