New York Solar Rebates and Incentives
The Empire state and home of the Big Apple, New York also is home to vast, lush wildlands and borders two great lakes, Ontario and Erie. The state is the third most populous in the United States, behind California and Texas. It’s also making significant strides to become more sustainable and implement renewable energy like solar power. Most of the state gets about 4 kilowatt hours (kWh) of sunlight a day, which is suitable for solar installations. But because the state gets less overall sunlight, they won’t produce as much power as the same system would in Arizona.
New York isn’t just making investments in solar, this northeastern state, which gets cold in the winter and pretty darn warm in the summer, also is incentivizing home and property owners to increase their energy efficiency, which can go hand-in-hand with incentives for installing solar.
Recently one of New York City’s most iconic buildings, the Empire State Building, made headlines when it was announced that through partnerships with the Clinton Climate Initiative, Rocky Mountain Institute, Johnson Controls, and Jones Lang LaSalle, $20 million of $500 million in renovations will convert the skyscraper to a lean, mean green building. The $20 million energy-efficiency retrofit will make the building a LEED Gold existing structure-certified building and will save it $4.4 million in annual energy bills. So, in five years, the retrofits will pay for themselves, and lead to significant energy savings in the future.
New York has a renewable portfolio standard (RPS) that requires it to generate 30 percent of its electricity from renewable energy by 2015. However, the state considers its large hydropower installations as part of its renewable portfolio (many other states don’t consider large hydropower sustainable). Under that methodology, 25 percent of the state’s energy already is produced by renewable energy, according to the New York State Energy Research and Development Authority (NYSERDA).
To help achieve the state’s goals, it is offering home and property owners numerous incentives to add renewable generation to their site. These incentives come in the form of state rebates, tax credits (personal, property and sales tax incentives), net metering, and property-assessed clean energy (PACE) financing. In addition, New York utilities offer rebates to home and property owners for installing solar systems and other renewable generation. So it’s a good idea to check with local utilities and governments about additional incentive programs like the New York City Property Tax Abatement for Photovoltaic (PV) Equipment Expenditures, which allows for a property tax abatement of 20 percent (paid out over four years) for installing a PV system in New York City.
Solar Rebate and Incentive Programs
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Personal Income Tax Credit
Program Type Income Tax Credit Technologies Photovoltaics, Solar Water Heat, Solar Space Heat, and Fuel Cells Amount Up to $5,000 for solar-energy systems, and 25 percent of system cost Required Documentation Form IT-255 Claim for Solar Energy System Equipment Credit Official Web Site http://www.tax.state.ny.us/pit/income_tax/more_income_tax_credits.htm Home and residential property owners in New York may qualify for this tax credit for installing a photovoltaic (PV) or solar energy system, including solar space heating or solar water heating systems on their property. To qualify for the credit, a PV system must grid-tied and net metered. For homes, this is limited to a 10 kW system. For condominiums and homeowner’s associations purchasing a system, size is limited to 50 kW systems.
The credit is allowed for the year the system is installed. In the case of condominiums and homeowners associations, the credit is divvied up between the building’s participating residents, according to New York tax code. If the credit is in excess of the tax due that year, it may be carried over for a maximum of five years.
Covered costs under the program include payments made for materials, labor costs for assembly and installation, designs and plans related to the construction and installation of the system, as well as architectural and engineering services. If grant money was used to make the purchases, they are not eligible for the tax credit.
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Distributed Generation
Program Type Net Metering Technologies Photovoltaics, Wind Amount The distributed generation rule applies to residential systems up to 25 kW in size Required Documentation Interconnection agreement and application filed with customer’s utility Official Web Site http://www3.dps.state.ny.us/W/PSCWeb.nsf/All/DCF68EFCA391AD6085257687006F396B?OpenDocument New York’s investor-owned utilities must offer net metering on a first-come, first-served basis to residents that install a photovoltaic (PV) or other renewable generation system that is up to 25 kW in size (farms and businesses may net meter systems up to 2 megawatts in size). Publicly held utilities do not have to offer net metering, but some, like the Long Island Power Authority, offer net metering similar to that offered by Investor-owned utilities. Utilities will continue to sign net metered PV systems until net-metered PV, biogas systems, micro-combined heat and power, and fuel cell systems together make up one percent of their 2005 energy demand. Utilities may choose to allow a higher percentage of net-metered systems into their energy mix if they want to.
In most net-metered systems, net excess generation in a month is credited toward the customer/generator’s next monthly bill at the utility’s retail rate. At the end of the year, customers that produced more energy than they used are reimbursed at the utility’s avoided cost rate.
The owner also will install a protective device that will unhook the system from the grid if the utility’s generators fail.
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Power Naturally Incentive Program
Program Type Rebate Technologies Photovoltaics Amount $1.75 per watt DC, a total of $13,750 or 5 kilowatts (kWs) per residential systems Required Documentation All documentation must be submitted by a state registered installer Official Web Site http://www.powernaturally.org/Programs/Solar/incentives.asp NYSERDA through its Power Naturally program offers a first-come-first serve photovoltaic (PV) rebate to install PV systems on homes and buildings. The rebates are available to property owners that are charged an RPS or Systems Benefit Charge fee on their electric billing statement. The program should run through at least 2015 as part of the state’s RPS goals.
The Database of State Incentives for Renewables and Energy Efficiency (DSIRE) said that the program is funded at $2 million per month, through 2015. So, as of August 2010, roughly $104 million of funding for PV installations remains. However, the Power Naturally site said on August 3, 2010, that the program was closed. It was unclear when the site was last updated. But it is wise to submit applications as early in the month as possible to ensure the system is covered under the program.
To qualify for the incentive, the system must be installed by an eligible installer, and the system must be grid-tied. The installer will submit all application materials on behalf of the system owner. However, eligible PV installers may only submit for incentives on up to 225 kW of PV installations in any given month. After they reach that level, they are not eligible to apply for more installation incentives until the next month.
Under the program, incentives are paid directly to the system installer, in two increments. The first payment, of 75 percent, is made to the installer upon delivery of all materials to the installation site. The 25 percent remainder of the incentive is paid upon completion of the installation after all paperwork has been submitted and the site was inspected and approved by NYSERDA or its representatives. All the rebates are given directly to the installer but are passed on 100 percent to the customer.
Rebates may not exceed 50 percent of the system’s costs. However, the actual rebate may be less depending on system location, tilt and more. According to NYSERDA, Energy Star labeled homes and building integrated PV systems may be eligible for an additional $.50 per watt rebate which may not exceed 50 percent of the total installed system costs.
The size of the PV system is limited to 110 percent of the home’s existing energy use, based on previous electricity bills, or 5 kW. To qualify for the full amount of the rebate, the system cannot have losses of more than 20 percent for a traditional PV installation. For building-integrated PV systems, a system cannot lose more than 40 percent. If loss levels exceed those thresholds, the amount of the rebate is adjusted accordingly. These factors, including shading by trees or neighboring buildings, the orientation and tilt of the system, (i.e., faces east or west, or lies flat on a flat roof), must be analyzed by the installer and are assessed during the review process.
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New York Solar Power Financial Incentives
Financial Incentives
Corporate Tax Credit
Green Building Incentive
Industry Recruitment/Support
- NYSERDA - Clean Energy Business Growth and Development
- NYSERDA - Energy Star Home Builders
- NYSERDA - Renewable, Clean Energy, and Energy Efficient Product Manufacturing Incentive Program
Local Rebate Program
Personal Tax Credit
- Green Building Tax Credit Program (Personal)
- Refundable Clean Heating Fuel Tax Credit
- Solar and Fuel Cell Tax Credit
Production Incentive
Property Tax Assessment
Property Tax Exemption
- Energy Conservation Improvements Property Tax Exemption
- Local Option - Solar, Wind & Biomass Energy Systems Exemption
Sales Tax Exemption
State Grant Program
- NYSERDA - Assisted Home Performance Grants
- NYSERDA - Distributed Generation as Combined Heat and Power (DG-CHP)
- NYSERDA - EmPower New York
State Loan Program
State Rebate Program
- NYSERDA - Energy $mart Multifamily Performance Program
- NYSERDA - Energy $mart New Construction Program
- NYSERDA - Existing Facilities Program
- NYSERDA - Fuel Cell Rebate and Performance Incentive
- NYSERDA - On-Site Small Wind Incentive Program
- NYSERDA - PV Incentive Program
Utility Rebate Program
- Long Island Power Authority - Energy Efficient Commercial Construction Rebate Program
- Long Island Power Authority - Residential Energy Efficiency Rebate Program
- Long Island Power Authority - Solar Rebate Program
- Long Island Power Authority - Wind Energy Rebate Program
- National Grid - Commercial (Electric) Energy Efficiency Incentive Programs
- National Grid – Commercial (Gas) Energy Efficiency Programs
- National Grid - Residential (Gas) Energy Efficiency Programs
- National Grid - Small/Mid-Sized Business Energy Efficiency Program
- National Grid - Solar Thermal Rebate Program (Long Island and metro New York)
Rules, Regulations & Policies
Appliance/Equipment Efficiency Standards
Building Energy Code
Energy Standards for Public Buildings
- New York - Energy Efficiency Standards for State Facilities
- New York City - Green Building Requirements for Municipal Buildings
Generation Disclosure
Green Power Purchasing/Aggregation
Interconnection
Net Metering
Public Benefits Fund
Renewables Portfolio Standard
Solar Access Law/Guideline
Related Programs & Initiatives
Alternative Fuels and Advanced Vehicles Data Center
The U.S. Department of Energy's Alternative Fuels and Advanced Vehicles Data Center (AFDC) provides a wide range of information and resources to enable the use of alternative fuels and other petroleum-reduction options, such as advanced vehicles, fuel blends, idle reduction and fuel economy. The AFDC site offers a database of state and federal laws and incentives related to alternative fuels and vehicles, air quality, fuel efficiency, and other transportation-related topics.
The U.S. Department of Energy's Green Power Network provides news and information on green power markets and activities, including opportunities to buy green power. This site provides state-by-state information on green power marketing and utility green power programs. In addition, the site lists marketers of renewable energy credits (RECs), also known as green tags or renewable energy certificates, which represent the environmental attributes of the power produced from renewable energy projects.
Weatherization Assistance Program
The U.S. Department of Energy's Weatherization Assistance Program (WAP) enables low-income families to reduce their energy bills by making their homes more energy-efficient. Through this program, weatherization service providers install energy-efficiency measures in the homes of qualifying homeowners free of charge. The WAP program web site offers a state-by-state map of opportunities, projects and activities.
The U.S. Department of Energy's Wind Powering America site provides state-by-state information on wind projects and activities, including wind working groups, validated wind maps, anemometer loan programs, small wind guides, state-specific news, wind for schools, workshops and web casts.
