Did you know there are ways to install solar systems for less than the original cost? Solar energy is incredibly beneficial, but not everyone can access it because of its expensive upfront costs. However, one way to get solar arrays at lesser prices is with solar incentives. Interestingly, New York Solar incentives make installing solar systems easier.
This article will describe nine of the solar incentives. Also, we’ll explain how to get free solar panels and more in New York.
What are Solar Incentives?
Multiple solar panels
As more people are gaining interest in renewable energy, the upfront costs seem to be an obstacle for regular citizens. However, several offers exist to reduce investment costs for homes and businesses, boosting interest in cleaner power.
The U.S. offers these cost reductions in the form of solar incentives. Interestingly, people with access to these incentives enjoy mouth-watering discounts and rebates, allowing them to install solar panels affordably.
Moreover, there’s a low chance you’ll find them all in one city or state. However, read on to discover the ones you can enjoy as a New Yorker.
8 Solar Incentives Offered in New York?
Solar Tax Credits
Solar tax credits
Going solar can help reduce your tax burden through tax credits. These are rewards you get when you install solar technologies on your property.
A famous example of this benefit is the 30% federal tax credit. Interestingly, the benefits apply to the whole country. However, the government plans on phasing the incentive out between 2020 and 2022.
Moreover, states can provide tax credits that you can add to the federal incentive. New York state offers up to 25% of your total solar investment as tax deductions. However, the benefit has a $5000 cap.
Therefore, purchasing a $30,000 solar power system in New York would give you 30% back as a federal tax credit ($9000). Also, you’ll get 25% as a state tax credit ($7500). In total, you’d receive more than half of your upfront costs in the form of tax advantages.
NY-Sun Program
The New York sun program offers rebates to Americans going solar. Rebates are cash incentives that the government removes from upfront costs directly.
Usually, you can get solar rebates from utility companies or programs managed by the government. However, you must satisfy the eligibility requirements to qualify for the NY-sun program benefit.
Further, you can have both solar rebates and tax credits. But you’ll get the rebate first before the tax credit. How? Well, if you get a $2000 rebate for a solar system worth $30,000. You’ll get your federal tax credit per the adjusted net cost ($28,000).
Hence, your federal incentive would be $8,400, not $9000 (from the above example).
Megawatt Block Incentive
Houses with solar panels
The Megawatt Block incentive can save you a few bucks if you purchase solar technology in New York. Intriguingly, you can enjoy this benefit under the NY-sun initiative. However, the incentive offers money-per-watt solar rebates.
Additionally, this program splits New York into three districts. And each one has a specific number of blocks determining the incentive rates. For instance, if 6,500 residential systems in area one have a 40 MV cap, New York would offer $1 per watt.
Once the block hits the 40 MV cap, New York will move to the next block. And if they have a 15 MW cap, the state will offer $0.90 per watt. Moreover, the Megawatt Block incentive is an incredible rebate. And you can pay back some of your solar array costs with the benefits.
Note: the benefit depends on how much solar power your area generates.
NYC Property Tax Abatement
Property with PV panels
The NYC Property Tax Abatement program is a business owner-exclusive incentive. You can get up to 5% of your upfront cost per year and a maximum of 20% in savings. However, you can only apply for this program after the NY-Sun Initiatives.
Furthermore, the incentive has a cap of $250,000 total or $62,500 per year. Also, you must be eligible before applying for the NYC Property Tax Abatement program. Further, installing a grid-connected solar array will grant you eligibility by January 1, 2024.
In addition, we recommend contacting the New York energy efficiency contractors. They’ll file the paperwork with the department of buildings, allowing you to enjoy maximum savings from the NYC Property Tax Abatement.
Home Solar Project Sales Tax Exemption
Hand on solar panels
This tax exemption program can help reduce your solar system’s upfront costs. Interestingly, this incentive allows you to purchase residential solar systems without paying any sales tax.
Usually, this exemption will grant you 100% off your sales tax for solar systems. Also, you can save up to 4% on installation costs.
Further, the sales tax exemption is also valid for systems using solar energy to generate heat, electricity, ventilation, or water.
Solar Renewable Energy Certificates
SRECs indicate when you generate specific amounts of power using solar energy. You can get an SREC once your solar facility produces 1,000 kWh or more. However, it must be through actual metered generation.
In truth, an SREC represents all benefits generated by a solar power system. The best part is that you can sell or trade these energy certificates. Hence, you’ll have access to another revenue source to help recover installation costs.
The Net Metering Program
Here’s an incentive program that allows you to trade excess solar power to your utility company for a profit. However, you’ll get credits instead of cash.
On the bright side, you may get $0 on your utility bills every month with this unique incentive. The Net Metering Program also helps make fast payments for solar PV systems. In addition, you won’t need to include battery storage in your solar installation costs since you’ll be selling excess power with the metering program.
The Solar Feed-in Tariff
Similar to net metering, solar feed-in tariffs allow you to make a profit from your solar electricity. But the difference is you can monetize your solar and receive cash.
That’s not all. Sometimes, you may trade your solar electricity at prices above market rates. So, the solar feed-in tariff is one of the most lucrative incentives to enjoy.
How to Get Free Solar Panels in New York
There’s a high chance you’ll qualify for free solar panels if you’re a New York homeowner. Here are the steps you should follow to enjoy this benefit.
Step 1: Examine your Options
You can check out a few programs that offer free solar panels. One good example is the Power Purchase Agreement (PPA). This option is a direct contact between you and the solar energy company (with a state license).
PPAs show the company is willing to install solar panels and sell the generated electricity at a fixed rate. However, it lasts for a set period. Also, you can opt for tax exemptions, SRECs, or federal tax credits.
Step 2: Review your Home’s Qualifications
Where you live in New York may determine the benefits and programs you can leverage. We advise speaking with your local solar energy professional to grasp your available options. It’s crucial to note that you won’t enjoy massive savings on solar installations with the wrong programs.
Step 3: Use a State-Licensed Installation Service
Typically, it would help if you always worked with a local solar installer with a state license. With state-licensed installers, rest assured that you’ll qualify for the proper programs, enjoy maximum savings, and get a secure and safe solar installation.
Final Words
New York solar incentives exist to help ease your movement to solar energy. Programs like the Federal Solar Tax Credit can give you up to 26% off your upfront costs in the form of tax deductibles.
Also, NY-Sun programs help to maximize your savings, while others, like the Megawatt Block incentive and Property Tax Abatement, can refund most of your installation costs.
Do you have more questions on this topic? Please, feel free to contact us.
