New York Legislators have created the right mix of Industry and Residential Programs to spur Solar Growth, with over Two Gigawatts installed, on pace for Six gigawatts installed by 2025.
Between the New York State Solar Rebates and Federal Tax Incentives, you could save 40% off the up-front Cost of Solar, and your Panels will pay for themselves off in just a few short years, leaving you with Free Electricity for the Next few Decades, with Federal Solar Investment Tax Credit will have the Biggest impact on the Cost you will face to go Solar in New York
If you install your Photovoltaic system before the end of 2032, the Federal Tax Credit is 30% of the Cost of your Solar Panel system. This is 30% off the entire cost of the system including Equipment, Labor, and Permitting. The Federal Tax Credit falls to 26% starting in 2033. Net Energy Metering in New York With Net Metering in some States, you get Full Retail Rate Credit for the amount of Electricity you send back into the Grid with your Solar Panels.
In New York, Utility companies must provide Net Metering services for Residential systems up to 25 kW. Any Net Excess Electricity generation is Credited to your next Bill at the Retail Rate. Excess generation is reconciled Annually at the avoided-Cost Rate.
Solar Customers do have to pay a Monthly Customer Benefit Charge (CBC) that cannot be Offset by Solar Generation. The Customer Benefit Charge is based on the size of your Solar system and your Utility company. The CBC will equate to a few extra dollars per month and doesn't drastically impact your Solar Investment. CBC Charges vary with your Utility company, so a Customer going Solar with National Grid will have a different Charge than an NYSEG Solar Customer or Con Edison Customer.
However, New York is looking to Transition to a New Solar Billing structure called the Value of Distributed Energy Resources (VDER), or Value Stack, program. This program seeks to Credit Solar Energy Producers more accurately without pushing Costs onto Non-Solar Customers.
Through the NY-Sun PV Incentive Program, New York Residents Statewide are looking at Rebate rates of $200 to $400 per kW on Solar Installations up to 25 kW. That means you can expect a Rebate of $1,200-$2,400 on a 6 kW system. Be aware, however, that the Incentive values get Lower as State Solar Capacity Goals are met. Long Island is already out of Funding, so don’t be late to the awesome Incentives party if you live in other areas of New York.
In addition to the 30% Federal Tax Credit, you can Qualify for a sizable 25% New York Solar Tax Credit. You simply take 25% of your Total Installation Cost, after you take the NY-Sun Rebate, and File a New York Tax Form IT-255 to receive the Credit. Be mindful that there’s a cap of $5,000 on this. So, if your Cost is more than $20,000, you won't get a Tax Credit bigger than $5,000 back from the State.
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, adding Solar Panels to your Home is exempt from Property Tax increases for a solid Fifteen years, even though Installing Solar Panels adds roughly 20 times your Annual Electricity Bill savings to your Property Value. In the case of our 6 kW example, that's about $28,000 of additional Value to your Home that you don't have to pay.
Also, contrary to other Home Upgrades like New Kitchen Stoves or Bathroom Fixtures, with Solar Panels in New York, you will Not have to Pay any Sales Taxes on your system.
NYSERDA offers Battery Storage Incentives for New York City, Westchester, Long Island, and the rest of the State (ROS). The Funding is meant to be paired with the NY-Sun Rebate outlined above. As of 2022, there are only Single-Family Residential Incentives for Battery Storage available in Long Island.
The Incentive amount is $250/kWh. So, if you Install a Tesla Powerwall Battery with a capacity of 13.5 kWh, your Powerwall system would be Eligible for a Rebate of $3,375. Your Costs could be even Lower if you are able to take the State and Federal Tax Credits.
NYC Wins When Everyone Can Vote! Michael H. Drucker
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