New York Solar Power in New York
Not sure if solar is right for you? Incentives are available to go solar in New York — it’s hard to find a better investment. Contact an All Energy Solar consultant to see what incentives are available in your area. Our team of dedicated professionals is waiting to assist you with every aspect of your solar energy project, from initial site visit and permitting to incentive paperwork and complete installation.
New York Solar Incentives
NY-Sun PV Incentive Program
Rebate rate of $350-$400 per kW on installations up to 25 kW
The New York State Energy Research and Development Authority (NYSERDA) through NY-Sun Incentive Program provides cash incentives for the installation of approved, grid-connected photovoltaic (PV) systems. The program was re-launched in 2014 with a goal of supporting 3.175 GW of installed capacity by 2023. The program provides cash incentives for residential solar systems that are 25 kW or less, and for small commercial systems that are 200kW or less. Small commercial sites in PSEG Long Island can apply for systems up to 500kW.
The incentive program is divided into regions across the State. NY-Sun assigns a certain amount of incentives to each of the three regions. Each region is then broken into blocks that are designated an allocation of megawatts (MW) eligible for NY-Sun incentives. Incentives remain available until all blocks within a region/sector are fully subscribed. NY-Sun intends to phase out incentives within a reasonable time frame as market conditions become more favorable to solar. The MW block structure is designed to support solar markets in the areas where support is needed most, and decrease incentives as they become less necessary to a self-sustaining solar market throughout New York.
New York Solar Energy System Equipment Tax Credit
25% of qualified solar energy system equipment expenditures | Limited to $5,000
Enacted in August 1997, this personal income tax credit originally applied to expenditures on solar-electric (PV) equipment used on residential property. The credit, equal to 25% percent of the cost of equipment and installation, was expanded in August 2005 to include solar-thermal equipment.
In New York your are entitled to claim this credit if you purchased solar energy system equipment which uses solar radiation to produce energy for heating, cooling, hot water, or electricity for residential use and the system must also be installed and used at your principal residence in New York State. The credit is equal to 25% of your qualified solar energy system equipment expenditures and is limited to $5,000. The solar energy system equipment credit is not refundable, but any credit amount in excess of the tax due can be carried over for up to five years. In general systems must comply with the 25 kW capacity limit on residential, net-metered solar-energy systems. However, in 2007 legislation was passed increasing the capacity limit to 50 kW for condominiums and cooperative housing associations.
Federal Solar Incentives
Federal Income Tax Credit
Available to any property owner in the United States.
Established by The Energy Policy Act of 2005, the federal tax credit for residential energy property applies to solar-electric systems and several other renewable energy technologies. The Consolidated Appropriations Act, signed in December 2015, extended the expiration date for PV technologies, and introduced a gradual step down in the credit value for these technologies.
Expenditures with respect to the equipment are treated as made when the installation is completed. If the installation is at a new home, the “placed in service” date is the date of occupancy by the homeowner. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system to the home.
The maximum allowable credit, equipment requirements and other details vary by placed in service date, as outlined below.
Solar-electric tax credit step down schedule
- 30% for all systems placed in service by 12/31/2019
- 26% for systems placed in service after 12/31/2019 and before 01/01/2021
- 22% for systems placed in service after 12/31/2020 and before 01/01/2022
- There is no maximum credit for systems placed in service after 2008.
- Systems must be placed in service on or after January 1, 2006, and on or before December 31, 2021.
- The home served by the system does not have to be the taxpayer’s principal residence.
If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The form that you will need to complete in order to file for the federal tax credit is Form 5695. It is to be filed in conjunction with your Federal Income Tax Return. This form can be found at www.irs.gov.
Additional Solar Incentives for Business Owners
Available to any business in the United States.
Under the federal Modified Accelerated Cost-Recovery System (MACRS), businesses may recover investments in PV through depreciation deductions. A solar PV system is classified as five-year property (26 USC § 168(e)(3)(B)(vi)) under the MACRS, which refers to 26 USC § 48(a)(3)(A) to define eligible property.
USDA Rural Energy for America Program (REAP) Grants
Available for rural customers, as defined by the USDA.
The Rural Energy for America Program (REAP) provides financial assistance to agricultural producers and rural small businesses in rural America to install solar PV systems. The maximum funding available is 25% of system cost, and each businesses total incentive will be determined based on a business level feasibility study.
Ready to talk about your solar energy system possibilities? Contact us to get a free solar quote.