New York has been in the top ten solar states in the country for many years thanks to its great solar potential. Even though New York averages only 3.79 sun peak hours per day, which ranks it pretty low compared to other states in the nation, the Empire State expected to increase its solar installed capacity significantly due to improved solar laws and advanced technology. With the local government that shows such strong support for solar and New York sky-high utility prices, switching to solar is a very smart decision.
As of 2019, the state’s typical cost of solar panels per watt is $3.19/W. If you are planning to install a 6kW solar power system, you will pay, on average, about $19,000. This price does not reflect any rebates, incentives, or tax credits.
The Federal Investment Tax Credit – the government program that allows you to claim 30 % of the cost of your solar equipment and its installation on your federal taxes. It has no limit on its value.
New York Solar Tax Credit - New Yorkers can claim 25% of the total cost of their solar power system on their state taxes. This credit caps at $5,000.
Solar Property Tax Exemption - when the installation of solar increases the property value, homeowners are exempt from paying property taxes on that increased value.
Sales Tax Exemption - the residents of New York are exempt from paying 4% taxes on their solar power system and its installation.
The NY-Sun Initiative – The program offers a rebate of $300-$400 per 1 kW of installed solar. This rebate is for solar power installations up to 25kW. A typical 5kw PV system would be eligible for a $1,500-$2,000 rebate.
The Megawatt Block Incentive Structure – This is a solar incentive program available under the NY-Sun Initiative. The program provides rebates for both residential and commercial solar installation and the amount depends on how much solar power is already being generated in the area where you live. The rebate can be as high as $1 per watt.
Net Metering Program – Net Metering is a state policy that requires local utility companies to measure your electricity generation and consumption. If you have any surplus of solar-generated electricity, it will be credited to your next bill at the retail rate. In New York, Net Metering is a statewide program and is available to all customers of any investor-owned utility companies. Net Metering is limited to provide service to solar energy systems up to 25kW in size.
New York might not be the sunniest state in the country but it gets enough solar power to completely replace traditional utility. Moreover, the state has one of the most ambitious solar rebates and incentives, which combined with tax credits makes adopting solar a very financially attraction option. If you are a resident of New York State, you are fortunate to get one of the best deals for solar installation and make a very profitable investment.
When you install a solar system, 26% of your project expenses apply toward a credit to offset any taxes you owe that year. This federal tax credit is a major incentive to go solar, but it is going to be phased out by 2024.
To be eligible to claim this credit, you must owe federal taxes.