There are several ways a homeowner can accomplish getting paid for solar New York. Notably, New York state offers a variety of solar incentives, rebates, and credits for solar system purchases. Depending on your region and payment method, you can access these savings to expedite your solar payback period. Indeed, it usually takes seven to twenty years for solar panel systems to cover the initial installation costs. As a property owner in the market for solar, you need to know what discounts are available to reduce the cost of your solar system. This way, you can obtain a more affordable installation. Read on to discover a homeowner’s guide to getting paid for solar New York.
Federal Investment Tax Credit
First, the federal investment tax credit (ITC) is a great program for New Yorkers to get paid for solar panels. Under this program, homeowners are entitled to tax credit 26% of your system’s value. For example, customer who pay for a $22,000 solar installation can obtain a $6,600 credit on their federal taxes. Ideally, you should set up an appointment with your prospective solar installer soon to cash in on this discount. As of 2022, the ITC declines to 22%. After 2023, the federal tax credit is expected to disappear. Importantly, you must purchase your rooftop system to qualify for this credit as well, as the program does not apply to solar leases. Definitely, the federal investment tax credit is a great way to get paid for solar in New York.
NY State Solar Equipment Tax Credit
Next, homeowners in New York can also get paid for solar with the NY state solar equipment tax credit. With this solar tax incentive New York State, you can reduce your state tax payments by up to $5,000 or 25% of your total energy expenses. The credit applies to whichever value is lower. Notably, the solar equipment tax credit offers some major advantages. Unlike the federal ITC, you don’t have to purchase your system to claim the credit. Indeed, you can apply for it even if you finance your solar system through a lease or PPA. If your tax liability is not large enough to claim the entire credit your first year, you can usually roll it over into the next year. Absolutely, the NY state solar equipment tax credit is a great incentive to maximize your solar savings.
In addition, New York’s net metering program is another great way to get your solar system paid for. With this agreement, you can send any electricity that you do not use back to the grid. Then, your utility company pays you for this excess solar energy. Importantly, net metering credits can offset the cost of buying power from the utility company when you need it. For example, if your system does not generate enough power after dark or on a cloudy day, you can use your solar credits instead of paying for the solar electricity. Naturally, a well-designed, efficient solar system is key to getting the most out of the net metering program. Therefore, be sure to discuss strategies to boost your solar panel efficiency to get paid more for your NY rooftop solar system.
Moreover, the NY-Sun low income incentive is another program for your residential solar system New York to pay for itself. Through the NY-Sun program, state residents can access rebates of about $300 to $500 per kW on solar installations up to 25 kW. On a 6-kW system, this means you could save up to $1,800 to $1,200. If you live in a low to moderate income household, the NY-Sun program passed new rules to make solar more affordable for household that make up to 80% of the county’s median income. For example, a family of four in Westchester County who makes less than roughly $84,000 can get $800 per kilowatt. On a 6kW system, homeowners could potentially save about $4,800. However, once the solar goals are met for a certain region, the incentive is no longer available for that region. Therefore, try to apply for the NY-Sun incentive as early as possible to secure your savings.
NYS Historic Home Ownership Rehabilitation Tax Credit
Furthermore, the NYS historic home ownership rehabilitation tax credit is another program you can use to pay for your New York solar system. With this credit, you can reduce the cost of solar project by up to 20% if you live in an eligible district. Notably, the Historic Homeownership Rehabilitiation Credit (HHRC) covers 20% of most home improvements, including solar installations. To qualify, you must live in a historic district listed on the National Register of Historic Districts. In addition, your income level needs to qualify on the census tracts as well. Of course, the NYS historic home ownership rehabilitation tax credit is a great way for property owners to get their solar systems paid for.
There are several ways a homeowner can accomplish getting paid for solar New York. First, the federal investment tax credit is a great program to reduce your residential solar electric costs New York. Next, you can also apply for the NY state solar equipment tax credit to reduce your solar costs. In addition, New York’s net metering program is a great way to take advantage of your solar energy system. Moreover, the NY-Sun incentive can help pay for low to moderate income families’ solar systems. Furthermore, if you live in a designated historic district, apply for the NYS historic rehabilitation tax credit. Consider these points for a homeowner’s guide to getting paid for solar New York.