New York State Energy Plan: Solar and Storage Goals to 2040

In July 2025, New York released a draft State Energy Plan with big targets: 35 GW of solar and 9.4 GW of battery storage by 2040. At a time when federal policy was moving away from renewables, the state was signaling it would keep building.

By December 2025, the final plan had been approved, with a stronger focus on affordability and a broader view of the energy sources New York will need.

Here is what the draft plan set out, how the final plan changed, and what it means for solar and storage owners in New York.

What Did New York's Draft Energy Plan Target?

New York's July 2025 draft State Energy Plan, a 15-year outlook through 2040, targeted 35 GW of solar and 9.4 GW of battery storage, according to Saur Energy. It was released alongside the state's first 1 GW bulk storage solicitation.

The draft built on progress New York had already made. The state hit 6 GW of distributed solar a year ahead of schedule and has set a goal of 10 GW by 2030.

Nearly 50% of New York's electricity already came from zero-emission sources, with 27% from renewables like solar, wind, and hydropower, according to Saur Energy.

What Stood Out in the Draft Plan?

The draft paired large targets with specific programs, rather than relying on cheap land or good weather to drive growth.

The highlights:

• ●Storage at scale. A 9.4 GW battery target set alongside solar, so the state can use daytime solar during evening peaks as more buildings and vehicles go electric.
• ●Distributed solar. The NY-Sun program, launched in 2012, keeps growing rooftop and community solar alongside large projects.
• ●Policy-backed goals. Long-term targets were paired with programs like the 1 GW bulk storage solicitation.
• ●Building rules. The plan counted on the All-Electric Buildings Act, which was set to require electric systems in most new buildings.

By comparison, Texas's ERCOT grid grew wind, solar, and storage from 51 GW to 82 GW between 2022 and 2024, according to Saur Energy. Texas leads on raw capacity. New York is betting on a more structured approach.

How Did the Final State Energy Plan Change?

New York's Energy Planning Board approved the final State Energy Plan on December 16, 2025, with more emphasis on affordability and an acknowledgment that natural gas and advanced nuclear will also be needed.

According to the American Public Power Association, the final plan added "further focus on energy affordability considerations and strategies to manage system costs." It also expanded discussion of demand flexibility and managing large new loads like data centers.

Harris Beach Murtha reported that the final plan projects approximately 28 GW of solar by 2040 in its "Additional Action" scenario. It also found that neither scenario meets the state's goal of a 40% cut in greenhouse gas emissions by 2030. Under Additional Action, that target is reached around 2037.

New York is still building toward a clean grid. It's just being more honest about the timeline and the cost.

What Happened to the Gas Ban for New Buildings?

New York agreed in November 2025 to pause enforcement of the All-Electric Buildings Act while a legal challenge is decided on appeal, according to Canary Media. The rules had been set to take effect at the end of 2025 for most new buildings.

The pause came after a lawsuit from builders' and propane groups. Earthjustice expected the delay to last until at least fall 2026.

That doesn't erase the state's electrification goals. But it shows how legal and political pressure can slow even well-designed policies.

Why Does Storage Matter So Much in New York's Plan?

Storage lets New York shift solar power into evening peaks, relieve congested lines, and replace retiring fossil plants without building new ones.

The state has been retiring more generation than it adds. Solar has helped fill the gap, and New York has set record solar output while grid reliability challenges remain.

Storage turns that daytime solar into power available when demand peaks. That's why it sits alongside solar at the center of the state's plan.

How Is Public Power Contributing?

The New York Power Authority is building renewables and storage directly under authority it gained in 2023. Its plan grew from 3 GW to a nearly 7 GW draft, before settling at about 5.5 GW, as we covered in NYPA's updated renewables plan.

Public projects add to what private developers and the NY-Sun program are building. Together, they're how New York plans to hit its long-range targets.

What Does This Mean for Solar Owners in New York?

New York's long-term commitment to solar and storage makes existing systems more valuable, especially as new projects get harder to finance after federal credit cuts.

Many commercial systems installed in the 2010s are losing output to aging inverters or degraded panels. Repowering an aging PV system restores that output and, in some cases, can add storage that fits the state's direction.

Start With a Ballpark Estimate

If you own a commercial solar system in New York, the state's plans point toward rising value for working solar. Find out what your existing solar project may be worth before deciding whether to repair, repower, or sell.

Sources: Saur Energy, "New York's draft energy plan eyes 35GW of solar, 9.4GW of energy storage by 2040"; American Public Power Association, "New York State Energy Planning Board Approves State Energy Plan"; Harris Beach Murtha, "2025 New York State Energy Plan Overview"; Canary Media, "New York pauses its landmark gas ban in new buildings"