New York Solar Rebates and Incentives
New York has long had solar rebates and incentives in place and, with the energy crisis solar industry's surge of recent years, has expanded many of the programs. New York residents are lucky enough to live in one of the country's leading states for solar incentives. Most of the incentives are written in to tax laws. New York adopted its Renewable Portfolio Standard in 2004, propelling to the forefront of the clean energy movement.
TAX CREDITS
Energy Conservation Improvements Property Exemption
- This tax credit, since 1977, has covered a wide range of renewable energy sources including solar hot water systems and photovoltaics. The exemption is good for the amount equal to the home's increase in assessed value. In other words, the value of your home will increase, but your taxes won't. It is good for one- to four-family homes.
- For more details see New York's Office of Real Property Services.
Solar/Fuel Cell Tax Credit
- This tax credit, enacted in 1997, covers solar hot water, solar space heating, and photovoltaic systems.
- The tax credit is worth 25% of the equipment and installation costs with a maximum credit of $5,000 and a maximum system size of 10 kW.
- There are also Carryover Provisions. Meaning that if the credit amount should exceed the taxpayer's tax liability for that year, it may be credited to following tax years (up to 5 years).
Solar Sales Tax Exemption
- This is a straightforward provision with one standout benefit; it includes passive solar heat. Other qualifying systems include solar hot water, space heating, and PV. The tax credit removes all sales and use taxes for 100% of the system's cost.
- Solar pool heating is NOT included.
- The law also allows for municipalities to adopt the provision, also exempting solar systems from any local sales taxes. Find a list of participating cities at the New York Department of Taxation and Finance.
Solar, Wind, Biomass Energy Systems Exemption
- This property tax exemption is strikingly similar to Energy Conservation Improvement exemption. It basically expands that tax law to include, in addition to solar water heating and PV, solar space heating, solar thermal electric, and daylighting.
- It also limits the exemption to 15 years for the amount equal to the increase in assessed property value.
REBATES
PV Incentive Program
- This state rebate program is administered by New York State Energy Research and Development Authority (NYSERDA).
- The rebate is an whopping $3-5/watt, varying by sector, system capacity, and type of system. Broken down for residential homes, the incentives work out to:
- $4.00/W up to 5kW
- $4.50/W for NY Energy Star homes up to 5kW
- $4.50/W for all building integrated PV systems up to 5kW
- Rebates are reduced by $1.00/watt for all residential systems above 5kW. Incentives are cut off at 10kW.
- All eligible systems must be new, grid-connected, installed by a pre-approved contractor, and adhere to NY Standard Interconnection Requirements.
- NOTE: Incentives under this program are only available to installers. However, law requires that savings are passed on to the customer. The goal here is to encourage more contractors to become state licensed solar installers.
- Visit powernaturally.org for more information.
NET METERING
- New York's net metering rules for PV electric systems are available on a first-come, first-serve basis for customers of the state's investor-owned utilities. A system cap of 10 kW is currently in place.
- Any monthly net excess generation (NEG) is credited to the next month's electricity bill. At the end of the annual billing cycle, any excess is purchased from the customer at the utility's avoided-cost rate.
- Public utilities are not required to abide by the net metering rule although many utilities have net metering programs in place. At least one, Long Island Power Authority, has instituted a net metering program that is in sync with the state's program.
- There are strict interconnection rules in place in order to qualify for net metering. The New York Public Service Commission (PSC) oversees the rules.
SolarPowerRocks gives New York a 5-star rating for solar power incentives. It's no wonder considering the wealth of tax incentives available and the state's upgraded net metering and solar rebate programs. New York is clearly making an effort to become a green-powered state and it's not just with solar incentives. Rebates and tax credits cover the wide array of renewable energy sources, wisely pushing for an all-around approach to achieving their Renewable Portfolio Standards.
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