New York Solar Energy Incentives

Although New York only has four peak hours of sun a day, the state is rapidly becoming a leader in renewable energy installations including solar, solar water heaters, and wind. Although homeowners may not see the same energy output as those in California, they do see a higher return on investment than most states. This is largely due to the 20%-50% higher energy rates in New York than the rest of the country. New York’s law makers have been taking steps to a greener environment including setting a goal for 22.5% Renewable Energy Portfolio Standard by the year 2020, with the requirement that 2% of that energy to come from solar. It also offers incentives and rebates to utility companies to generate a percentage of their total power output from a renewable energy source.

The market for installers is also looking bright, as New York is attempting to pass legislation that will require the state to install 2.2 Megawatts of solar by the year 2022. This bill would generate thousands of jobs in the solar industry and possibly attract new energy manufacturing and installation companies in the state. Solar installers in New York are currently supported by the NYSERDA through the Power Naturally Program currently offers a first come first serve solar rebates to install PV systems. In order to qualify for the program, installers must be NABCEP certified. All rebates are provided directly to the installer and then passed 100% onto the customer. The program not only stimulates the solar sector, but offers a price break for homeowners that prefer to work with an installer than installing their solar energy systems themselves.

Investor-owned utility companies are further incentivized to offer net metering on a first-come-first-serve basis to homeowners, commercial and agricultural customers. Homeowners enjoy a wide net of up to 25Kw of net metering, while commercial users can claim up to 2 Megawatts. While agricultural customers may sell their excess energy to other customers from the same utility region and local zone. Though some investor-owned utility companies do not offer net metering incentives, however many of them offer similar programs. New York residents are encouraged to reach out to their utility companies to see how they can benefit from roof top, grid tied systems.

In addition to the Federal Solar Tax Credit, New York offers their own Personal Income Tax Credit up to $5,000 or 25% of the cost of materials, labor and design costs. In order to qualify for the Personal Income Tax Credit, homeowners must claim the credit in the tax year that the system is installed, have a system under 50Kw, and that system must be net metered and grid-tied. If grant money was used to make purchases, then those sums will not be eligible to qualify. The Power Naturally Incentive Program offers a rebate of $1.50 per watt DC power up to 40% of the cost after the tax credit is applied. In order to qualify, the paperwork must be submitted by a state registered installer. For more information on possible financial incentives and rebates, view the list below.

Additional Financial Incentives

New York Rules, Regulations & Policies