In recent years, New York has become one of the hottest markets in the U.S. for solar panel installations. Whether because of the generous New York solar tax credit available to homeowners, the ambitious clean energy targets from politicians across the state, or because New Yorkers simply see the climate and economic benefits of installing solar PV panels, the Empire State is setting a great example for the rest of the country.
For anyone looking to switch to solar power, keeping up with exact policies, such as New York solar incentives and rebates, can be challenging. New policies are rolled out regularly, local incentives vary from one jurisdiction to the next, and if you’re not working actively in the solar industry, it can be a bit confusing.
To ensure that you don’t miss out on any potential incentives and benefits of installing solar panels at your New York residence or business, keep reading to see the key New York State solar tax credits and other incentives to keep in mind when investigating if solar is for you. If you’re interested in getting a quote from a pre-screened installer near you and seeing how much you can save with these incentives, you can do so using this tool or the form below.
New York Solar Tax Credit
Perhaps the biggest solar incentive in the state of New York is the Solar Energy System Equipment Credit.
As explained by the New York State Department of Taxation and Finance, this tax credit is available to anyone who engages in a new solar project for their place of residence, whether that’s through purchasing solar energy system equipment, signing a solar lease, or even committing to a power purchase agreement of solar energy generated by equipment owned by another entity (if that agreement spans 10 years or more).
For any of the above New York solar energy engagements, the person making the purchase or signing the lease or PPA is entitled to a state tax credit of up to 25% of total expenditures (up to a cap of $5,000).
It’s important to note that the New York solar tax credit is not refundable, meaning it reduces your tax liability but is not paid directly if that credit exceeds your expected tax payments. However, any excess credit can be carried over to future tax filings for up to five years.
New York Solar Rebate
Another quite notable and beneficial incentive for solar purchases is the New York Solar Rebate, known as the NY-Sun Megawatt (MW) Block Incentive. Unlike the solar tax credit, this program applies not just to residential solar systems but also to nonresidential, industrial and commercial solar installations.
Specifically, the NY-Sun initiative offers up-front discounts for installed solar systems on a “dollars-per-watt” ($/W) basis in the form of a direct cash rebate. The exact amount that a new installation can expect to receive is dictated by the region of New York it’s in, how many of the allotted rebates in that region have already been paid out, the size of the system, and the timeframe in which installation is completed.
Generally speaking, though, the New York solar rebate starts as low as 15 cents per watt and can rise all the way up to $1 per watt, making up over half of the cost of installing solar in the best-case scenario.
Other New York Solar Incentives
While the New York solar rebate and …….