The New York State Legislature and Governor Kathy Hochul have approved the state’s 2027 fiscal year budget and allocated US$200 million for rooftop and community solar.
The investment will go towards the New York State Energy Research and Development Authority (NYSERDA) NY-Sun Solar Program, which aims to increase distributed generation solar adoption in the state.
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According to trade association New York Solar Energy Industries Association (NYSEIA), the US$200 million funding for the NY-Sun program will support nearly 1GW of new rooftop and community solar PV. The funding will also lower utility bills for families and businesses, while leveraging an estimated US$1.5 billion in private capital.
This comes as the state targets 10GW of installed distributed solar by 2030 and reached its previous target of 6GW by 2025 a year ahead of schedule. New York is among the leading states in community solar deployment, with cumulative deployment across the country passing 10GW late in 2025.
On top of the US$200 million in funding for the NY-Sun program for distributed solar, the budget also directs the New York Public Service Commission (PSC) to modernise the utility interconnection process, which will lower costs and shorten the timeline for integrating distributed energy resources.
This comes only a few weeks after the state passed the Accelerate Solar for Affordable Power (ASAP) Act, which targets 20GW of distributed solar energy by 2035 as well as interconnection reforms such as Flexible Interconnection. Through this reform, utilities use smart-grid controls to actively manage solar PV and energy storage exports and charging, avoiding the need for costly traditional distribution upgrades that would otherwise prevent projects from moving forward, said SEIA.
A recent study from NYSEIA estimated that Flexible Interconnection can increase hosting capacity for community solar in Upstate New York by up to 97% and unlock about 3.3GW of additional capacity.
Noah Ginsburg, executive director at NYSEIA, said: “By doubling down on distributed solar, New York is demonstrating that clean energy and affordability can go hand-in-hand.”
New Your State Senator, Peter Harckham, added: “We are addressing energy affordability head-on in the FY2026-2027 budget by securing US$200 million for the successful NY-Sun Program. This public funding will catalyze billions in private investment, expand local rooftop and community solar and create billion-dollar annual utility savings for consumers. At a time when other forms of new electric generation face years of delay, our investment in solar means new energy that can quickly scale, meet demand and provide long-term savings.”
