August 9, 2021
Following the Reforming the Energy Vision (REV) Initiative, New York is considered one of the top solar states in the United States due to its popular solar incentives. Its various tax incentives and exemptions have continued to make solar energy an efficient and promising choice for New Yorkers for the past two decades.
NY-Sun offers multiple financing options and incentives to promote and transition New York to solar energy. These incentives are utilized throughout New York state and have allowed millions of New Yorkers to reap the economic and environmental benefits of solar energy.
How to Finance Solar in New York
The NY-Sun Solar Initiative allows for NYSERDA-approved solar contractors and developers to balance the cost for New Yorkers switching to solar energy. NY-Sun allows for simple financing options for residents to purchase and install solar at home at a low cost. There are two loan options available that vary in amounts from $1,500 to $25,000 with loan terms of 5, 10, or 15 years—On-Bill Recovery loans and Smart Energy loans.
Through On-Bill Recovery Loans, residents can pay for installation costs as an additional cost on their monthly utility bill. Therefore making payments easily manageable. If the utility service is terminated, residents will be billed by NYSERDA’s loan servicer instead.
Through Smart Energy Loans, residents can manage their payments directly to NYSERDA’s loan servicer. If the home is sold or its ownership is transferred, the borrower is still responsible for repaying the balance of the loan.
Homeowners may also qualify for initiatives under the Affordable Solar incentive program. For households that earn less than 80% of the median income in the area, they may receive increased financial incentives.
New York Solar Tax Credits
Along with NY-Sun initiatives and financial incentives, homeowners may also qualify for tax credits on a national or state level. These are the incentives and tax credits available to New York State residents:
#1. Solar Energy System Equipment Credit
To qualify for the 25% New York State Tax Credit, homeowners must install the solar system at their personal residence, therefore excluding community solar. This credit is equivalent to 25% of your qualified solar system equipment up to $5,000. The solar system must utilize solar radiation to generate energy for residential use.
#2. Federal Solar Tax Credit
The investment tax credit (ITC) deducts 26% of the cost of installing a solar system from the homeowner’s federal taxes. Both commercial and residential systems qualify for this tax credit and there is no maximum value of the system.
#3. New York State Real Property Tax Exemption
This provides New York State properties with renewable energy systems a 15-year real property tax exemption. To apply, you must file with your local property assessor.
#4. New York City Real Property Tax Abatement Program
This program provides New York City homeowners with property tax abatement to properties that utilize solar power. The amount depends on the initial start date of the solar service. To qualify for this program, you must be approved by the NYC Department of Buildings.
Interested in developing your own New York solar project? Get in touch with YSG today. Whether it’s a residential rooftop installation, a community solar subscription, or even a solar land lease, YSG will work with you to ensure the biggest savings and the greatest return on your investment. Call now at 212.389.9215 or send us an email to learn how it all works.
YSG Solar is a project development company responsible for commoditizing energy infrastructure projects. We work with long-term owners and operators to provide clean energy assets with stable, predictable cash flows. YSG's market focus is distributed generation and utility-scale projects located within North America.
Sources:
https://www.tax.ny.gov/pit/credits/solar_energy_system_equipment_credit.htm
https://www1.nyc.gov/site/finance/benefits/landlords-solar-roof.page