New York State has been making strides in recent years to transition towards a cleaner energy future. In this blog post, we will explore New York’s solar incentives and compare them to other states, using a rating scale of 1-10 (10 being the most solar-friendly state).
Quick Read:
- New York offers several financial incentives for solar installation, including tax credits, rebates, and grants.
- The average cost of electricity in New York is slightly higher than the national average, making solar energy an attractive option for homeowners.
- On a scale of 1-10, New York ranks as a 7 for solar-friendliness, with moderate incentives, favorable policies, and a growing commitment to renewable energy.
Tax Credits, Rebates, and Grants:
- NY-Sun Program
- Amount: Varies based on project size and location
- Type: Rebate program
- Description: The NY-Sun program provides rebates for residential, commercial, and industrial solar projects. The rebate amount is based on the size and location of the system and is designed to help offset the upfront cost of installation. In addition to rebates, the program also offers performance-based incentives for larger commercial and industrial systems.
- NY State Tax Credit
- Amount: 25% of the installed cost, up to $5,000 for residential systems; 15% of the installed cost, up to $350,000 for commercial and industrial systems
- Type: Tax credit
- Description: New York offers a state tax credit for residential, commercial, and industrial solar installations. The credit is worth 25% of the installed cost, up to $5,000 for residential systems, and 15% of the installed cost, up to $350,000 for commercial and industrial systems.
- Property Tax Exemption
- Amount: Varies by locality
- Type: Property tax exemption
- Description: New York allows localities to offer a property tax exemption for solar installations. The exemption is based on the added value of the system and can vary by locality. This exemption can help reduce the overall cost of owning a solar system.
- Sales Tax Exemption
- Amount: 100% exemption on the sales tax for solar equipment and installation
- Type: Sales tax exemption
- Description: New York offers a sales tax exemption for solar equipment and installation. This exemption applies to the purchase and installation of solar panels and related equipment.
- Net Metering
- Amount: Varies by utility
- Type: Utility program
- Description: New York’s net metering program allows solar system owners to receive credits on their utility bill for excess electricity generated by their solar system. The credits can be used to offset the cost of electricity purchased from the utility.
- Remote Net Metering
- Amount: Varies by utility
- Type: Utility program
- Description: New York’s remote net metering program allows solar system owners to receive credits on their utility bill for excess electricity generated by their solar system that is exported to another location on the same utility’s distribution system. This program can be particularly useful for community solar projects.
- Community Solar
- Amount: Varies by project
- Type: Utility program
- Description: New York’s community solar program allows residents and businesses to subscribe to a local solar project and receive credit on their utility bill for the electricity generated by the project. This program is designed to help renters, low-income households, and others who are unable to install solar systems on their own properties.
Average Cost of Electricity:
The average cost of electricity in New York is slightly higher than the national average, making solar energy an attractive option for homeowners. According to the U.S. Energy Information Administration, the average retail price of electricity in New York was 15.92 cents per kilowatt-hour in 2020, compared to the national average of 10.54 cents per kilowatt-hour.