NYSERDA’s Retail Energy Storage Program & What It Means for Landowners

"Camilla Battery Storage facility - geograph.org.uk - 7770755" by Bill Kasman is licensed under CC BY-SA 2.0.

New York’s energy transition continues to plow ahead – the state’s new energy storage program makes it possible for everyday landowners to host a grid‑scale battery, earn a predictable lease payment, and keep power flowing for neighbors during peak hours. Here’s how the Retail Energy Storage Market Acceleration Incentive, launched in May of this year, works, and how AC Power can help you capture it.

What Is the Retail Energy Storage Incentive?

In February 2025 the Public Service Commission approved NYSERDA’s Retail & Residential Energy Storage Implementation Plan, carving $891.5 million out of a $1.2 billion budget for community‑scale batteries and setting a 1.5 GW retail‑storage target by 2030. For landowners, that boils down to a brand‑new pot of cash to host batteries no larger than 5 MW / 20 MWh each.

NYSERDA set up a “MWh‑Block” funding pool for batteries that connect to the distribution grid. Each block offers a fixed dollar‑per‑kilowatt‑hour payment; when the block fills, the rate steps down for the next one. Early movers therefore lock in the highest incentives, which in turn can secure higher lease rates for landowners.

Applications are accepted until December 31, 2030 (or until funding runs out), giving projects a generous window to reach permission‑to‑operate.

How the money flows

• NYSERDA pays the posted $/kWh rate on the first four hours of a battery’s duration; hours five and six are paid at 25 % of that rate, and anything beyond six hours receives no grant.

• The newest block launched with $125/kWh for New York City, $125/kWh for Westchester, and $175/kWh for the rest of the state, plus a richer $350/kWh carve‑out for critical facilities in disadvantaged communities (the Retail Inclusive Storage Incentive).

• If your system is 1 MW‑AC or larger and taps the newer funding blocks, construction must pay prevailing wage or use a project‑labor agreement – one more reason to partner with a developer like AC Power that already meets those requirements.

• The incentive is open statewide except Long Island, whose single retail block was exhausted in 2021.

Why a battery makes sense for landowners

1. Reliable revenue. A long‑term lease delivers steady income with no upfront cost.

2. Grid resilience for your neighbors. Batteries discharge during high‑demand hours, relieving stress on local feeders and reducing the chance of outages.

3. Small footprint, reversible use. A 5 MW/20 MWh system can fit on roughly one acre and is fully removable at end of life, leaving your land ready for future uses.

4. Site rehabilitation. Capped landfills and remediated industrial sites – where AC Power already specializes – score environmental‑justice points and avoid greenfield zoning battles.

What makes a good site?

• Two to five flat acres.

• Proximity to three‑phase distribution lines and a substation with available capacity.

• Zoning that allows utility or storage use, or a municipality willing to adopt the state’s model Battery Energy Storage ordinance.

• Reasonable road access for construction and maintenance crews.

Where AC Power comes in

• We run a no‑cost site analysis – including interconnection, environmental flags, and incentive status – then reserve your spot in the current MWh block.

• AC Power covers 100 % of development costs, oversees prevailing‑wage reporting, and manages all studies and utility payments.

• Our team has guided dozens of energy projects through local boards and SEQRA review; we handle the paperwork and public meetings so you don’t have to.

• We hire qualified EPC partners, commission the system, and operate it for the full term, sending you lease checks along the way.

Ready to explore a project?

New York’s retail storage incentives are live, but the blocks will fill quickly. If you control acreage that’s languished in the shadows, or capstone that needs a new revenue story, let’s talk. AC Power can convert yesterday’s liabilities into tomorrow’s grid assets.

Contact AC Power at info@acpowerllc.com for a quick, no‑obligation site review. Let’s turn your property into a community‑scale battery and a brand‑new income stream, benefiting you, your neighbors, and New York’s clean energy future.