Saving with Solar Incentives in New York
Making sure you know about all the solar incentives and discounts available to you is part of our goal to make solar affordable and accessible. If you’re ready to start building a brighter future, learning about solar incentives is the place to start!
What you need to know about solar incentives:
Federal Tax Credit: You can take advantage of a federal tax credit equal to 30% of what you paid for solar. (This credit was recently increased from 26% and is secured at 30% through 2032 thanks to the Inflation Reduction Act.)
NYSERDA Incentive: The current NYSERDA solar incentive is valued at 20¢ per solar watt you install and will save the average customer $2,400. (This incentive changes every several months as “blocks” of incentive money expire and new blocks are opened. Unfortunately we can’t predict what the value of a new block will be.)
NYS Tax Credit: You can write off 25% or $5,000 of the cost on your New York state taxes in addition to the 30% federal tax credit.
Ready to speak with a Solar Advisor about Solar Incentives?
Let’s Break Down These Solar Incentives:
1. The federal tax credit
The federal tax credit, also called the federal income tax credit, remains at 30% for all systems installed in 2022 and for the next 10 years.
While this sizable credit has been a huge help for solar consumers, it is contingent upon a family’s tax liability. Basically, your tax refund is limited to what you pay in taxes over the course of a given year. The good news is, you may be able to use the credit over multiple years. We recommend speaking with your tax professional to see if you’ll be able to benefit from this tax credit.
2. The NYSERDA incentive
This is a block grant — basically a monetary reward for going solar — that decreases over time, as more solar capacity is installed in the area. Currently, the incentive is $0.20 per watt.
3. The state tax credit
After taking the NYSERDA block grant into account, you can write off 25% of your total solar system value or $5,000 (whichever comes first) on your taxes. If you don’t have enough tax appetite to write off the whole sum, New York will let you roll the remaining credit to the next cycle.
Solar incentives decline over time. Take advantage of them now!
The sooner you go solar, the more you save. Tax credits, rebates, and incentives can cover a really significant portion of the cost of going solar. Get in touch with one of our Solar Experts today:
Bonus: New York Real Property Tax Exemption
If you’re going solar, you’re providing a net benefit to the grid, the state, and the planet as a whole. You’re also increasing the value of your property, because, hey, who wouldn’t want to live in a house with a negative electric bill? Normally, improvements like this would mean that you have to pay higher property taxes. Luckily, the state of New York thinks that the benefits of solar outweigh their need for your tax dollars.
The state provides a 15-year real property tax exemption for properties located in New York State with renewable energy systems as long as the jurisdiction the system is located in doesn’t opt-out. See if your jurisdiction has opted out here. (This law only applies to the value that a solar electric system adds to the overall value of the property. It does not mean that landowners with an installed renewable energy system are exempt from all property tax!)
Affordable Solar Program
Program available for low to moderate income level household (LMI) defined as a household with gross income at 80% or less of the median county income (80% AMI). Learn more here.