Incentives
There are federal, state, and local financial incentives to support investments in installing solar energy. The range of options includes cash payments, net metering, and tax incentives. Many innovative solutions from the commercial sector are emerging as well, such as third-party ownership, property tax assessment, and community solar programs (NYC Community Solar resources coming soon).
Residents of NYC are eligible for a mix of federal, state, and city incentives. Download our incentive guides below for more information. NYC Property Tax Abatement Guidance Document <pdf>.
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Incentive Resources
Incentive eligibility varies by location, type of building, and system owner. The NYC Solar Incentive Guides explain which incentives could apply to a solar installation on your home or building in NYC.
Residential Solar PV Incentive Guide
Commercial Solar PV Incentive Guide
Cooperative/Condominium Solar PV Incentive Guide
Solar Thermal Incentive Guide
(Coming Soon)
residential solar PV incentivesThere are federal, state and city financial incentives to support investments in solar energy. Below is an overview of the available incentives for installing a solar electric system on your home or residential building in New York City. Many of these incentives are tax related, and vary from case-to-case.
Federal Federal Tax Credit: Residential building owners are eligible to receive a federal tax credit worth 30% of the cost of the solar installation, after subtracting the New York State Energy Research and Development Authority (NYSERDA) incentive (explained below). Assuming the NYSERDA incentive is taxable income, the total installed cost of the system is the basis for calculating the federal tax credit. For more information, visit: DSIRE . Example, the federal tax credit for a 7 kilowatt residential solar installation that cost $56,000, minus a $10,500 incentive from NYSERDA, would be: ($56,000 - $10,500) X 30% = $45,500 X 30% = $13,650 State NYSERDA Incentive: As a Con Edison customer you are eligible to receive a rebate of up to $1.40 per Watt-DC of solar PV installed on your residence capped at 7 kilowatts, for standard residential systems not to exceed 40-percent of the total installed system cost after available tax credit. For example: If you have a 7 kW residential system you may be eligible to receive $1,400 per kW: $1,400 x 7kW = $9,800, or 40% of the total installed system cost, whichever is less. Program details can be found at: NYSERDA PON 2112 New York State Tax Credit: Residential building owners who install solar may be eligible for a tax credit for the lesser of 25% of the installed cost of the solar energy system (up to 25 kW on net-metered systems) after the NYSERDA incentive, or $5,000. Be advised that the federal government considers this state tax credit taxable income. For more information, visit: DSIRE Sales Tax Exemption: New York enacted legislation in July 2005 exempting the sale and installation of residential solar-energy systems from the state's sales and compensating use taxes. The exemption applies to solar-energy systems that utilize solar radiation to produce energy designed to provide heating, cooling, hot water and/or electricity. The exemption does not apply to solar pool heating or other recreational applications. City New York City Property Tax Abatement: Residential building owners who place a grid-connected solar energy system into service from January 1, 2013 through December 31, 2014 are eligible for a four-year Tax Abatement of 2.5% per year of the installed cost of the system for 4 years (total of 10%) after the NYSERDA rebate. Abatements are applied after the NYSERDA rebate, capped at $62,500 per year or $250,000 total. This tax abatement is spread equally over four years, and may not exceed your property tax liability for any given year. If you wish to apply for this incentive, you will need to hire a New York State registered architect or professional engineer to file the paperwork with the Department of Buildings. For more information, visit: NYC DOB Tax Abatement <pdf> Updated May 2013 Disclaimer: the authors of these guides do not provide tax advice, and you should consult your tax professional to verify your eligibility for tax benefits. [1] LIPA customers are also eligible for solar incentives, similar to those offered by NYSERDA. For more information on LIPA's residential solar incentives, visit: http://www.lipower.org/residential/efficiency/renewables/solar.html
Commercial Solar PV incentivesFederal, state and city financial incentives are available to support investments in solar. If your building is located in a NYC Solar Empowerment Zone you may quality for additional incentives. Below is an overview of the incentives available for installing a solar electric system on a commercial building in NYC. Many of these incentives are tax related, and vary from case-to-case. Federal Federal Tax Credit: You are eligible to receive a federal tax credit worth 30% of the cost of the solar installation. Assuming the NYSERDA incentive is taxable income, the total installed cost of the system is the basis for calculating the federal tax credit. Example: The federal tax credit for a commercial solar installation costing $425,000 would be: $425,000 X 30% = $127,500 If this tax credit exceeds your federal income tax liability the year the solar energy system is installed, you may carry the tax credit forward through 2016. For more information, visit: DSIRE Disclaimer: the authors of this guide do not provide tax advice. You should consult your tax professional to verify your eligibility for tax benefits. Modified Accelerated Cost-Recovery System (MACRS) + Bonus Depreciation: Companies that invest in a solar energy system may be eligible for federal income tax deductions through the Modified Accelerated Cost-Recovery System (MACRS). The IRS allows commercial solar PV system owners to deduct up to 85 percent of their tax basis. This form of depreciation can be claimed over a five year period. Additionally, until 12/31/13, PV systems may be eligible for a first-year 50% Bonus Depreciation. The Accelerated 50% expires 12/31/13. For more information, visit: IRS Publications and DSIRE State New York State PON 2112 NYSERDA Incentive (PV size less than 50 kW): As a Con Edison customer 1, you are eligible to receive an incentive of up to $1.40 per Watt or $1,400 per kW for commercial systems up to a total of 50 kW per site/meter, not to exceed 40% of the total installed system costs. Example: For a 50 kilowatt (e.g. 50,000 Watt) solar PV system, NYSERDA would provide an incentive of up to $70,000 ($1,400 x 50kW = $70,000). Note the NYSERDA incentive is paid directly to the installing contractor. For questions on tax liability you should consult an accountant. Program details can be found at: NYSERDA PON 2112 New York State PON 2589 NYSERDA Incentive (PV size greater than 50 kW): As a Con Edison customer 1, you can participate in NYSERDA's price-sensitive competition to receive an incentive of up to 50% of the total installed system costs. This program, previously referred to as the Renewable Portfolio Standard Customer Sited Tier Regional Program (also known as the Geographic Balance Program) is now being called the NY-Sun Competitive PV Program. The incentive can be paid either to the installer or the host site, depending on the contracting arrangement; for questions on tax liability you should consult an accountant. Spanning the entire state, $107 million is available for proposals that were submitted by the first two (2) due dates of November 8, 2012 and March 14, 2013, and for those received by the third and last remaining due date of August 29, 2013. Program details are available at http://www.nyserda.ny.gov/PON2589 New York State Sales Tax Exemption: The law exempts the sale and installation of commercial solar energy systems equipment from sales taxes, and allows municipalities and cities to exclude these costs from local sales tax. (not available in NYC) City New York City Property Tax Abatement: Commercial building owners who place a grid-connected solar energy system into service from January 1, 2013 through December 31, 2014 are eligible for a four-year Tax Abatement of 2.5% per year of the installed cost of the system for 4 years (total of 10%). Abatements are capped at $62,500 per year or $250,000 total, applied after the NYSERDA rebate. This tax abatement may not exceed your property tax liability for any given year and application requires filing of paperwork at the Department of Buildings by a registered architect or professional engineer. For more information, visit: NYC DOB Property Tax Abatement for Solar NYC Solar Empowerment Zone NYC Solar Empowerment Zones Incentive: NYSERDA provides an additional 15% incentive for solar projects in all five NYC Solar Empowerment Zones under its NY-Sun Competitive PV Program (described above as PON 2589). In order to be eligible, a customer must be contributing to the State's RPS fund. More information, including who to contact, is available at http://www.nyserda.ny.gov/PON2589 Updated May 2013 Disclaimer: the authors of these guides do not provide tax advice, and you should consult your tax professional to verify your eligibility for tax benefits. [1] LIPA customers are also eligible for solar incentives, similar to those offered by NYSERDA. For more information on LIPA's residential solar incentives, visit: http://www.lipower.org/residential/efficiency/renewables/solar.html
Cooperative housing and condominiums Solar PV incentivesFederal, state and city financial incentives are available to support investments in solar. If your building is located in a NYC Solar Empowerment Zone you may quality for additional incentives. Below is an overview of the incentives available for installing a solar electric system on a condominium or co-op building in NYC. Many of these incentives are tax related, and vary from case-to-case. Federal Federal Tax Credit: Building owners are eligible for a tax credit worth 30% of the installed cost of a solar energy system, after subtracting the NYSERDA incentive. Tenant stock-holders in cooperative housing corporations are eligible for their proportionate share of this tax credit for the corporation's eligible expenditures. Individual members of condominium management associations who own a condominium in the building on which they install solar are also eligible for their proportionate share of this tax credit. If the federal tax credit exceeds an individual's federal income tax liability for the year the solar energy system is installed, the individual may carry the tax credit forward to the next year, through 2016. For more information, visit: DSIRE State New York State Tax Credit: Residential building owners who install solar are eligible for a tax credit for the lesser of 25% of the installed cost of the solar energy system (up to 50 kW on net-metered) after the NYSERDA incentive, or $5,000. Tenant stock-holders in cooperative housing corporations and individual members of condominium management associates are eligible for their proportionate share of this tax credit for the corporation/association's eligible expenditures. Be advised that the federal government considers this state tax credit taxable income. For more information, visit: DSIRE NYSERDA Incentive: As Con Edison customers1, cooperatives and multi-family building owners are eligible to receive a rebate of up to $1.40 per Watt-DC of solar PV from the New York State Energy Research and Development Authority (NYSERDA). In general, this incentive is capped at 7,000 Watts (i.e. 7 kilowatts) if the solar PV system is connected to an individual residential electricity meter, or 50 kilowatts if the system is connected to the buildings' main meter. Due to the complex ownership and metering arrangements for many multi-family buildings, NYSERDA reviews solar PV incentive eligibility on a case-by-case basis. Program details and contact information can be found at: NYSERDA PON 2112 City New York City Property Tax Abatement: Building owners who place a solar energy system into service from January 1, 2013 through December 31, 2014 are eligible for a four-year Tax Abatement of 2.5% per year of the installed cost of the system for 4 years (total of 10%) after the NYSERDA rebate. Abatements are capped at $62,500 per year or $250,000 total. This tax abatement may not exceed one's property tax liability for any given year. For systems installed on condominiums, the tax abatement is to be divided among all tax lots within the building. If building owners wish to apply for this incentive, they will need to hire a New York State registered architect or professional engineer. For more information, visit: NYC DOB Property Tax Abatement for Solar Solar Empowerment Zones NYC Solar Empowerment Zones Incentive: NYSERDA provides an additional 15% incentive for solar projects in all five Solar Empowerment Zones under its NY-Sun Competitive PV Program. In order to be eligible, a customer must be installing a PV system over 50 kW and be served by Con Edison. More information is available at http://www.nyserda.ny.gov/PON2589 Updated May 2013
[1] LIPA customers are also eligible for solar incentives, similar to those offered by NYSERDA. For more information on LIPA's residential solar incentives, visit: http://www.lipower.org/residential/efficiency/renewables/solar.html Disclaimer: the authors of these guides do not provide tax advice, and you should consult your tax professional to verify your eligibility for tax benefits. |