New York solar 101: must read before you buy solar panels

The Solar Investment Tax Credit (ITC) allows homeowners to claim 26% of the cost of their solar power system installed until 2022 as an income tax deduction. For example, if your solar system costs $20,000, you are eligible for $5,200 (26% of the total gross cost) in tax credit. Solar system cost comprises not only the money spent on solar panels, but also freight shipping costs, professional installer fees, tools bought or rented, and so on. To claim the ITC, complete all the necessary forms and submit them when filing your taxes.

You can reduce your state tax credit by up to $5,000 or 25% from your total solar system expenses through a Claim for Solar Energy System Equipment Credit. This program applies to new and already installed systems, also qualifying if you went solar on a lease or through a PPA. The energy system must be installed and used at your primary residence in New York. Any credit amount in excess of the tax due can be carried over for up to five years. Keep in mind, however, that solar energy system equipment credit is not refundable.

The Net Metering policy in New York has made it easier for utility customers to sell excess solar power instead of storing the energy in batteries. Your PV system will start to pay for itself primarily through the Net Metering program by selling solar energy that you haven’t used into the commercial grid and gain credits from your utility company for it. 

The credit value in New York is equal to your utility retail rate per kWh. Any unused credits will roll over to the next month and begin to accumulate in your “credit bank”. You can draw energy from there when your solar system generates less electricity than needed to zero out your bills.

One of the top Net Metering programs in New York is offered by National Grid. To get started you must first submit an application and only install your solar system once you receive interconnection acceptance. After your system is set up, it will be verified and tested to receive final approval.

New York PV System owners can avoid paying additional property taxes on the added value their solar system brings to their home by applying for a solar system tax exemption. This certificate will ensure any new PV system installed and its equipment will not be part of your property tax. Additionally, any such home improvement will definitely make it about 4% more valuable on the property market, says the 2019 Zillow report.

NY-Sun offers a financing program known as Affordable Solar for loans anywhere from $1,500 to $25,000. The payback terms are 5, 10, or 15 years. This program is for homeowners with incomes below 80% of the median income in the state. Small commercial and non-profit organizations are also eligible for low-interest financing. Find more information here.

A solar easement contract is a written agreement between you and another party, for example, your neighbor. This type of contract helps to ensure that your PV system will always have adequate sun exposure, protecting you from potential obstacles. It is voluntary, but can not be canceled unless a specific clause is included in the document. Once signed, it is tied to the land, not the owner.

It is legal to install solar panels on your house in New York, but all solar installations require a NY State Unified Solar permit and it is recommended to search for the permit from your city. There is no statewide legislation that makes it unlawful to restrict the installation of solar PV systems. So, it’s best to contact your homeowner’s association (HOAs) to be certain of any regulations that may be in your area. You may have to submit your project for approval before changing the exterior of your house. The board may ask you to hide the system from view, reduce the number of panels or just reject your proposal.

Located right on the east coast, New York residents should always be prepared for a hurricane.  Solar panels are manufactured to withstand most hurricanes, and in any power outage, solar panels will help you survive a blackout. In 2012, Hurricane Sandy left 153,000 Con Ed customers without power across New York. As stated by the Environmental Protection Agency our climate is changing and natural disasters are becoming more frequent. Powering your home with solar energy you will no longer have to worry about blackouts.