New York is one of the most popular solar locations in the entire country, thanks to its environmentally conscious, financially savvy population. A big reason for the thriving solar community throughout New York City and surrounding areas is the availability of numerous fantastic incentives and rebates for going solar. With some changes looming on the horizon, let’s take a closer look at some of the great solar incentives available for New York residents in 2019.
#1. Federal Investment Tax Credit
The federal Investment Tax Credit (ITC) remains a huge draw for prospective New York solar customers in 2019. This tax credit allows you to reduce your federal tax liability by up to 30% of your solar system’s value, provided you have purchased your solar system outright. Unfortunately, this tax credit will begin its step-down next year. In 2020, the percentage drops to 26, then down again to 22 percent in 2021, until finally the ITC will be unavailable for homeowners from 2022 onwards.
#2. Megawatt Block Incentive
The New York Megawatt Block Incentive uses a generous, up-front dollars-per-watt approach to subsidise both residential and commercial solar installations. This incentive, which falls under the umbrella of the NY-Sun initiative, involves a location-based approach. The payment-per-watt is dependent on the amount of solar energy being produced in your area. The higher the total solar capacity is in the area, the lower the subsidy received. This inverse rate of return continues until the solar capacity in the area reaches a point where the incentive is phased out entirely. Nonetheless, the initial amount offered in some of these areas is very enticing, and given the time-sensitive nature of the project, 2019 is a great time to apply for this particular solar incentive.
#3. NY State Solar Equipment Tax Credit
The New York State Solar Equipment Tax Credit (catchy name) is another wonderful way for solar consumers to save money in 2019. This credit offers a generous reduction of up to 25% or $5,000 - whichever is the lowest of the two - on your solar expenses. One great benefit of this particular tax credit, compared to the ITC for example, is that it also applies to solar users who have not purchased their system outright. Even if you’ve leased the system, you can still avail of this great tax credit.
By Shane Croghan