Leaf change over the Adirondacks
Welcome to the New York solar incentive and rebate information page.
If you have any questions, our network of solar experts are on call to assist you. Simply sign up for personalized help. You can get discounted pricing as low as $5,000/kW! This is paired with unbeatable New York Solar incentives below.
2012 update!: There’ve been some changes to the New York Solar incentives over the past while, and we’re now on top of all of them. Check out the summary below, and we’ll cover all the important points. Finally, we’ll share a sample 5kw solar system example for the Empire State.
The first point to note is the state’s superior overall grade. This results from the state legislature’s solid efforts over the previous decade to promote solar energy in the state with favorable incentives.
Performance payments: While there are no ongoing solar performance payments to report (commonly referred to as SRECs), there are significant state solar power rebates and tax credits to take advantage of as a homeowner in New York.
New York solar power rebate: For every kilowatt of solar you install, you qualify for a rebate of $1,750 up to a maximum of $12,500. Keep in mind you may not take more than 40% of your installation costs for this rebate. For a typical 5kw system, you would get $8,750 back from the state. There are many qualified solar installers who will even take the solar power rebate off the out of pocket cost for you so you don’t have to wait around for the check from the state. Ask your installer if they can do this for you.
NY solar tax credit: Next up is the sizable New York solar tax credit. You simply take 25% of your total installation cost and file tax form IT-255 to receive the credit. Be mindful, there’s a cap of $5,000 on this. If you are installing a 5kw system, you’ll be due back $5,000 from the state.
Federal solar tax credit: All solar installations are eligible for a 30% tax credit from the Feds as well. You need to calculate your expenses after rebates for this one, so on our hypothetical 5kw system priced at $25,000, you can expect back $4,875 (Take $25,000, subtract the state solar power rebate of $8,750 to arrive at $16,250… Then, take your 30% and you’ll get $4,875).
NY solar tax exemptions: Lawmakers in New York have been doing their best to make going solar easier for residents. In addition to the above solar power rebates and tax credits, the addition of solar panels to your home is exempt from property tax increases, even though you’ll be adding roughly 20 times your annual electricity bill savings to your property value. In the case of our 5kw example, that adds up to about $18,000 ($922 annual electricity savings multiplied by 20).
Moreover, your system is exempt from sales tax!
Utility Policies and Prices: New York has set an ambitious renewable portfolio standard with a solar carve out. This means that the state is required to derive at least 22.5% of it’s electricity from renewable sources by the year 2020. 2% of that renewable mix must come from solar. If those numbers aren’t hit, the utility companies get penalized with fees. Therefore they’re willing to offer some incentives to make their targets ahead of time.
The average price of electricity in New York is $0.16/kWh. If you were to install our hypothetical 5kW solar system, you can expect to save about $920 a year in electricity (a 5kW system in New York will generate 5,750kWh per year!)
Solar Accessibility: New York has been doing well to promote solar with a fair approach to net-metering and making connections to the grid go smoothly without a bunch of bureaucratic headaches.
5kW System Payback: As of January 2012, if you were to install a 5kW solar energy system on your house, we calculate it would pay for itself in just 6 years! Not only that, but installing that amount of solar would be equivalent to planting over 100 trees to offset your carbon emissions. See below:
Again, if you are confused about how these numbers work and would like some personalized assistance or a quote of your own, simply connect with our network of solar experts. They’ll help sort out all the pricing, get you access to special deals, and they’re super friendly to boot!
Consensus: New York Solar solar power rebates and incentives rock! Hopefully, New York’s leaders will continue their fine work and take even greater advantage of the enormous opportunities for solar installer related jobs–not to mention environmental benefits–by continuing the solar rebate program through this decade and implementing performance payments across the state.