New York Solar Incentives – Everything You Need to Know!
Solar Incentives NY – We provide zero-down PV and battery storage options in NY and take advantage of federal and State solar rebates. You may also be eligible to get bill credits for the surplus solar energy you create and send to the grid through the Value of Distributed Energy Resources (VDER) program. NY State Energy Research and Development Authority (NYSERDA) administers it. 13 Potentially lowering your monthly electricity costs is the VDER initiative. Another term for this setup is “net metering,” used in some areas (NEM).
It might be the perfect time to switch to PV energy with our help, a firm based in NY. We’re among the most significant panel installation companies in NY. Explore our panel and storage options to see if they fit your house well. Panel and storage quotes from Solar Mentor are always at no cost to you.
Residential Solar Incentives NY
PV investments can be bolstered by federal, State, and local tax credits and rebates. Solar incentives in New York for putting a power system on a residential building in NY State are summarized here. It’s important to note that many of these subsidies are tax-related. Thus, subject to change depending on the specifics of each situation.
Credit on Federal Taxes: Owners of Residential Buildings May Be Eligible for a Credit on Their Federal Taxes of
- 26% in 2021
- 26% in 2022
- 30% in 2023
- 30% in 2024
The federal tax credit is determined by the full installed cost of the system, assuming the NY-Sun Incentive represents taxable income. Check out DSIRE if you want to learn more.
After deducting the NY-Sun Incentive, some installers figure out the federal tax credit. In any case, You should consult a tax expert to guarantee compliance with IRS regulations.
Reasons for Solar in New York State
Financial solar incentives in NY are available through the NY-Sun Initiative for installing PV panels. The State’s incentives move across three areas: Con Edison, PSEG Long Island, and the Rest of the State.
Each region and sector (commercial vs. residential) gets a set of M.W. targets at various incentive levels, or “blocks,” under the Megawatt Block incentive framework.
When applications are received, they dole out solar incentives in New York, and the corresponding kilowatt hours (kW) are totaled up and converted to megawatts (M.W.).
After meeting a specific block’s M.W. goal, they will terminate the partnership, and a new block will begin with a different purpose and a reduced incentive.After meeting an area’s and a sector’s quota of available blocks, the incentive for that region and that sector will end.
You may check out available incentives by block in real-time on the Megawatt Dashboard.
Incentives cover 20%-30% of the total installed cost of a P.V. system for a typical home or commercial design.
To clarify, the NY-Sun incentivizes the contractor to do the installation.
To encourage the use of renewable energy sources, the State of New York offers homeowners who install PV panels a tax credit of up to $5,000, or the lesser of 25% of the system’s installed cost (up to 25 kW for net-metered systems), if the plan meets specific requirements. Please note that the Internal Revenue Service will count this state tax credit as income for federal tax purposes.
Legally, the purchase and installation of residential solar-energy systems in NY are exempt from the State’s sales and compensatory use taxes as of July 1, 2005. Energy systems that convert PV radiation into usable energy like heat, cold, steam, and electricity qualify for the tax break. They expressly exclude pool heating and other leisure uses from the exemption. Even more so, energy systems installed in private homes are exempt from local sales and use taxes in NY City and other cities but not businesses.
Homeowners in designated historic areas in New York State are entitled to a tax credit of up to 20% of the cost of panel energy installation.
Improvements, such as panel installations, made to owner-occupied properties within the following historic districts are eligible for a 20% (up to a $50,000 credit) tax credit under the Historic Homeownership Rehabilitation Credit (HHRC) program:
- Locations of historical significance as recognized by the National Park Service OR
- Areas of the census classified as low-income
The formation and growth of these zones persist.
Owners of NY City commercial properties installing grid-connected energy systems between January 1, 2014, and January 1, 2024, are eligible for a 20% Tax Abatement over four years. They calculate tax exemptions after the NY State Sun Grant at $62,500 annually or $250,000. This tax credit is amortized over four years and cannot be used to pay any year’s property taxes.
If you have questions about installation or incentives in New York City, contact us at 718 374-2629.