Navigating the Solar Incentive Landscape: New York State
As the world continues its shift towards renewable energy, New York State stands out as a leader in promoting solar power adoption through robust incentive programs. These incentives not only benefit individual homeowners but contribute significantly to New York’s clean energy goals. Let’s delve into the solar incentive structure in New York and understand how it is driving solar energy adoption through a $5,000 State tax credit, a 4 year property tax abatement, the 30% Federal Tax Credit and Net Metering.
1. $5,000 State Tax Credit:
One of the primary solar incentives in New York is the $5,000 State tax credit. The credit is equal to 25% of qualified solar energy system equipment expenditures and is limited to $5,000. In other words, the state is paying homeowners to go solar! The way in which this credit is claimed depends on the type of project (i.e. lease v. ownership) that gets installed, and an individual’s tax liability; working with someone from Anchor will provide insight into eligibility at the individual level.
2. 4-Year Property Tax Abatement:
If you live in the inner-city boroughs, we also get to take advantage of a very unique incentive…the 4-year property tax abatement. New York City residents receive a property tax abatement for going solar, equivalent to 30% of the gross solar cost, spread out evenly over 4 years. This amount can surpass $10,000 in property tax savings for almost half a decade! The exact amount will depend on the size of the solar system.
3. Federal Tax Credit (ITC):
The Federal Solar Investment Tax Credit provides an additional financial incentive for solar installations. While this incentive is not specific to New York, it complements the state-level incentives, further reducing the overall cost of going solar, by providing the qualified homeowner a federal tax credit, equivalent to 30% of their solar system’s cost. Similar to the State Tax Credit, eligibility to claim the ITC depends upon tax liability, which can be further explained with an Anchor representative, along with your accountant.
As discussed in the previous blog, New York offers a robust net metering policy, allowing solar system owners to receive credits for excess energy the solar system generates, that then gets fed back into the grid. This means homeowners can not only save on their electricity bills, but also contribute to a more resilient and sustainable energy grid. New York’s commitment to clean energy is also evident in its ambitious goals, such as achieving 70% renewable energy by 2030 and reaching carbon neutrality by 2050. These targets drive ongoing innovation and investment in solar technology, creating a favorable environment for homeowners and businesses to adopt solar power.
With all this being said, navigating the solar incentive landscape can be daunting for many. It is essential for interested parties to do thorough research, consult with reputable solar installers, and leverage available resources. This is why Anchor focuses on advising over selling.
Meet with your Anchor representative today to understand how we may take advantage of the incentives explained above. They will not last forever, so let’s take advantage of them while they are here! There is no better place to go solar than in New York.
With all this being said, navigating the solar incentive landscape can be daunting for many. It is essential for interested parties to do thorough research, consult with reputable solar installers, and leverage available resources. This is why Anchor focuses on advising over selling.