If you live in New York and want solar, you couldn’t be luckier! With the state's ambitious renewable energy goals and the increasing demand for clean energy, New York has rolled out a series of incentives to make solar installations more affordable for its residents.
Here's a detailed overview of the solar incentives available in New York in 2023.
New York ranks among the top solar markets in the U.S., with nearly 4% of its electricity sourced from solar. The state's Clean Energy Standard initiative aims for 70% of its energy to come from renewable sources by 2030. With the average cost of installing a solar panel system in New York being around $16,050, the state's incentive programs can significantly reduce this expense.
a. NY State Solar Energy System Equipment Tax Credit
This tax credit offers a dollar-for-dollar reduction in income tax. It's equivalent to 25% of qualified solar energy system equipment expenditures, capped at $5,000. For instance, if you spend $20,000 on qualifying solar equipment, you can get a $5,000 tax credit. This credit is nonrefundable, but any excess credit can be carried forward for up to five years.
b. NY-Sun Megawatt Block Program
Part of the NY-Sun Initiative, this program provides an upfront rebate based on dollars-per-watt for residential and commercial solar systems. The state is divided into regions, each with its allocation of megawatts eligible for incentives. The incentive values range from 20 cents per watt in the ConEdison region to 50 cents per watt in the upstate region.
c. Solar Electric Generating System Tax Abatement
This program offers a four-year, 5% tax abatement for constructing a solar electric generating system on residential and commercial buildings in NYC. The maximum abatement is $62,500 annually for four years or the building's annual tax liability, whichever is less.
d. Solar Project State Sales Tax Exemption
Since 2012, New York has exempted sales-and-use tax on the retail sale and installation of commercial solar energy systems equipment. Commercial property owners are exempt from the 4% state sales-and-use tax and the 0.375% tax rate in the Metropolitan Commuter Transportation District.
Net metering allows solar owners to sell excess solar energy back to electric companies in exchange for credits on their bills.
New York offers net metering for home solar systems up to 25 kW of capacity. If your solar generation exceeds consumption in a month, the difference can be rolled over to the next bill.
a. On-Bill Recovery Loan
This loan allows residents to manage installation costs by adding them as a line item to their monthly utility bill. If you sell your home, the unpaid loan balance can be transferred to the new homeowners.
b. Smart Energy Loan
Repayments for these loans are made directly to NYSERDA's loan servicer.
c. Renewable Energy Tax Credit Bridge Loan
This short-term loan helps finance federal and state tax credits and the NYC Real Property Tax Abatement for eligible renewable energy products. The loan can be paired with a Smart Energy or On-Bill Recovery Loan, provided the total doesn't exceed $25,000.
The Federal Solar Investment Tax Credit (ITC) is a significant incentive for homeowners across the U.S., including New York.
This tax credit allows homeowners to deduct 30% of the cost of installing a solar energy system from their federal taxes. However, to qualify, homeowners must purchase their photovoltaic (PV) system directly and not lease or finance it. The financial benefits of the tax credit can vary based on individual income levels.
With all these incentives, you couldn’t be in a better state to get solar than New York!
But do you know what would make solar even better?
Getting it for an actually affordable price!
Solar sales bros, middlemen, and installation companies around the country are lining their pockets with your hard-earned money. But you don’t have to let them.
At DIY Solar, we cut out all of that crap. We provide you a customized solar system and let you install it yourself (if you’d like), making it much more affordable (about 40% less than the national average)!
Interested in learning more? Fill out our quoting form and we will text you soon!