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New York’s Bold Move Protects Community Solar Subscribers

The NY PSC’s new rule delivers relief for community solar customers and increased accountability for utilities. Perch Energy helped drive a historic win for community solar customers in New York.
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The NY PSC’s new rule delivers relief for community solar customers and increased accountability for utilities.  Perch Energy helped drive a historic win for community solar customers in New York.

The New York Public Service Commission (PSC) just made history with a bold new rule that directly protects community solar subscribers and holds utilities accountable when consumer credits are not delivered in a timely manner. 

For years, utilities in New York have often struggled to promptly apply community solar credits to customer bills. The delays in applying these credits has left subscribers frustrated, confused, and often facing sudden, unexpected costs. Now, for the first time, utilities will face financial penalties and customers will receive direct compensation when credits are delayed. 

Thanks to advocacy led by our team at Perch Energy along with a coalition of industry partners, community solar subscribers will automatically get $10 per month whenever a utility fails to apply credits on time. Utilities across the state also face up to $15 million in annual penalties tied to two core billing performance metrics. 

This is a first-of-its-kind shift in how utilities are regulated, setting a national precedent for protecting clean energy customers. 


A long overdue win for solar customers
 

Community solar exists to make clean energy accessible to everyone, especially those who cannot install rooftop solar where they live. In New York, the program has grown rapidly, with 1,000+ projects built saving subscribers 5 to 20 percent on their electric bills each month.

But for many subscribers, these electricity bill savings have been undermined by inconsistent and delayed billing. Instead of receiving predictable monthly credits, customers have gone months without credits appearing on their bills. When utilities eventually apply all the missed credits at once, subscribers face a huge lump-sum charge just to unlock those savings. 

For lower- and middle-income families, this often meant coming up with hundreds of extra dollars on short notice. Even for those who could afford it, the experience was confusing and stressful.  


Savings you can count on, every month

The PSC’s new rule tackles this problem head-on by creating clear consequences for utilities that fail to meet basic billing obligations. 

  • $10 monthly compensation for affected subscribers: Any customer whose credits are not applied on time will automatically receive a $10 payment each month until the issue is fixed.
  • Two core billing performance metrics: The PSC will track accuracy and timeliness across New York’s utilities. Poor performance on these metrics could trigger up to $15 million in collective penalties each year. 

This dual approach provides utilities with the incentives to improve, while giving customers peace of mind that they will be compensated when things go wrong. 


How policy change really happens
 

Big changes like this do not happen overnight. They take years of behind-the-scenes work by advocates, policymakers, and industry leaders. These are the steps that Perch Energy and our partners took to turn a widespread problem into meaningful change. And, ultimately, help pass this new rule.  

  • Problem identification. By 2023, it was clear to subscribers, community solar developers, and advocates that delayed credits were a widespread issue harming customers.
  • Coalition building. Perch Energy partnered with a coalition of subscriber advocates and clean energy organizations to develop a set of solutions and push for accountability.
  • Formal proposals. This group – led by Perch – submitted a framework to regulatory staff outlining six key billing metrics that would track utility performance and recommended financial penalties for failure.
  • Regulatory hearings and drafts. The New York Department of Public Services released a draft proposal in early 2024, which incorporated many of these ideas. 
  • Negotiation and final vote. After public feedback and months of discussions, the PSC approved the new rule in July 2025. 

The final rule includes two of the six original metrics and a total penalty cap of $15 million annually. This represents a groundbreaking step toward a more accountable utility system. 


Perch Energy’s fight for
consumers
 

As one of the largest community solar subscriber management companies in the country, our team at Perch has deep insight into the challenges customers face. We see firsthand the frustration and hardship caused by delayed credits and inaccurate billing. 

We brought this on-the-ground perspective directly to regulators, showing how systemic billing issues were hurting customers and undermining the clean energy transition. By combining data, subscriber stories, and policy expertise, we helped design a framework that puts people first... and delivers reliable energy savings for consumers! 


A model for other states to follow
 

While this ruling is specific to New York, its implications go far beyond state lines. 

For decades, there has been an opportunity to better align utility incentives with clean energy goals. Utilities traditionally make money by building infrastructure, not by supporting renewable energy programs or prioritizing customer experience. New York’s decision flips that dynamic, proving that regulators can demand accountability and tie utility profits to public outcomes. 

As other states watch what happens in New York, we’re hopeful that this model could spread nationwide. State regulators tend to look to other states for examples of what they can do when addressing similar issues – for example, Illinois is currently considering performance metrics with associated penalties tied to community solar billing and crediting. Similar rules could be adopted elsewhere, ensuring that as community solar programs grow, they deliver the reliable savings customers expect. 

Community solar customers in New York will finally see consistent, predictable savings, and compensation for mistakes. 

This rule represents a historic shift in how utilities are held accountable. It also signals a new era for clean energy regulation, where utilities must earn trust by delivering on their promises. 

For subscribers, that means real relief. For the clean energy movement, it means a blueprint for progress across the country.


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