Rooftop solar panels in NYC are gaining in popularity. If you’re a New York resident or investor and are interested in going solar, you’re in the right state at the right time.
New York State Tax Credit for Solar Equipment
With this program, you can take the lowest of either a tax credit of 25% or $5,000 on what you spent on solar energy equipment. You’re eligible too if you have a Solar Power Purchase Agreement (that’s SPPA for short). With that, you would agree to buy solar energy from a third-party source for 10 years or longer.
You could also have a lease and still take the credit with a Power Purchase Agreement (PPA). Another perk is that you can use the remainder of the tax credit when you file an online tax return the following year if you couldn’t take advantage of the entire credit in one year.
New York’s Megawatt Block Incentive
The program offers a solar panel system rebate upfront of dollars-per-watt ($/W) up to $1 per watt. Therefore, you could possibly obtain a large incentive using New York solar power with the Megawatt Block Incentive.
If you reside in an area where there are a lot of solar panel installations, your incentive will be smaller. In contrast, you’ll have a larger incentive if your area has few solar panels installed.
Net Metering Program in New York
When you go solar, you’ll want to make sure you are charged fairly for the solar electricity you use. The net metering program is the policy that monitors fair pricing and usage. After you install solar panels, the grid accepts the electricity you send. Some will be used, but you may have excess. These are referred to as credits.
As a participate in a net metering program, your unused credits are saved for later months. For example, wintertime is typically when solar panels harness less energy. You can utilize those credits when you need them the most.
Here are New York’s best net metering programs offered by electric companies:
- National Grid
- Consolidated Edison
- PSE&G
Electric companies change their rates often. For residents, a change can occur every six months. To get the most favorable rate, so be sure to read your electric company’s current rate schedule.
Investment Tax Credit from the Federal Government
This tax credit incentive from the federal government applies to many different types of solar equipment purchases and expenses. After-tax credits and rebates have been applied, you may qualify for a maximum of a 26% reduction of your tax liability.
Here, unlike the New York State incentive for solar equipment and expenses, you will have to purchase your solar energy system. The good news is that if you qualify for a large reduction and cannot use it all this year, you can use the remainder of your tax credit the following year.
With solar rebates and incentives in New York, residents and commercial builders can take control over their energy costs. They can quickly invest in solar energy today because who knows how long these programs will last.