Zillow says solar panels can raise NY property values by 4.1%, adding $30,905. This fact signifies that going solar in New York in 2023 is a smart choice. With improved technology, growing environmental consciousness, and attractive incentives, this year offers the best opportunity to switch to solar energy. Let’s explore why 2023 is the best time to install solar panels in New York.
New York Solar Incentives and Tax Credits in 2023
The New York state provides various financial incentives to promote the adoption of solar power. In many New York areas, you can save on solar panels with tax exemptions, federal incentives, and state credits. 2023 is the prime time for solar panel installation in New York, thanks to tax rebates and incentives, promising a greener future.
Federal Solar Tax Credit (ITC)
In 2023, the Federal Solar Tax Credit provides an excellent opportunity for residents in New York to achieve financial savings on their homes. If you install solar panels for your home, you can get back 30% of what you paid for the solar panels and their setup costs. For instance, if your solar panel cost in New York is $10,000 to buy and install, this incentive will reduce your taxes by $3,000. The incentive recently increased from 26% to 30% and will remain in effect until 2033. To qualify, owning the solar panels is a requirement, and you can utilize the credit as soon as you’ve set up your panels.
Pro Tip: Click Here for a step-by-step guide on filing for a Federal Solar Tax Credit.
New York State Solar Equipment Tax Credit
New York State offers a Solar Equipment Tax Credit, which gives you 25% off the cost of getting solar panels set up at your place. This can be used with the Federal Solar Tax Credit to save even more on taxes. You can get a maximum of $5,000, which applies to PPA (Power Purchase Agreement), too, which is different from the Federal Tax Credit. You can’t get cash back from this tax credit. But you can use this credit for five years if you can’t use it all at once.
Megawatt Block Incentive
The Megawatt Block Incentive is a part of the NY-Sun Initiative. It’s for homeowners in specific parts of New York. Your savings depend on the amount of solar power you install. For instance, if you’re in Upstate New York, you can get $0.30 for every watt of solar you put in. This means an 8 kW system could give you $2,400 back. Only people living in Upstate New York or the Con Edison regions can use this incentive. If you live on Long Island, this incentive no longer applies there.
The New York State Energy Research and Development Authority runs the NY-Sun Initiative. The NY-Sun Initiative can help you find contractors that they approve of. One program they handle is called the Affordable Solar Program, or EmPower+. This makes it less expensive to install solar panels for families whose earnings are 80% lower than what most people in the country make.
In New York, net metering rules differ depending on your utility company, like Con Edison, National Grid, or PSEG (Public Service Enterprise Group). But the main idea is the same: If you have net metering, you can store extra energy from your solar panels with the utility company. Then, when your panels don’t make enough energy (which often happens in winter), you can use that stored energy to lower your electricity bill. This is applicable for homes with solar systems under 25 kW. The utility company sets minimal monthly charges called Consumer Benefit Contribution (CBC) fees. Net metering is one of the significant reasons that make 2023 the best time to install solar panels in New York.
VDER Value Stack
New York is changing how it handles solar energy credits. Instead of net metering, it’s shifting to the Value of Distribution Energy Resource (VDER) Value Stack model. This sounds complex, but here’s the idea: With net metering, you mainly get credits for the electricity you put into the grid. But with VDER Value Stack, you get credits for different things like how valuable the energy is, how it helps the environment, and how it reduces electricity demand, among other factors.
Sales Tax Exemption
In New York, the sales tax rate is 4%. However, you’re exempt from paying any sales tax if you purchase solar panels. This can lead to significant savings. For example, if you got a big piece of furniture for $5,000, you’d usually pay an extra $200 in sales tax, making the total $5,200. But if you spend $5,000 on solar panels, you only pay $5,000.
Property Tax Exemption
According to the New York State Real Property Tax law, installing solar panels won’t increase your property taxes for 15 years. This means that solar panels will not be subject to any property tax. Also, even though your property taxes stay the same, having solar panels can make your home more valuable if you decide to sell it. Hence, solar panels offer a more sustainable future for residential and commercial properties in New York.
2023 offers a prime opportunity for New York residents to switch to solar energy. The attractive incentives make it the best time to install solar panels in New York. The increased federal tax credit, state incentives, and the Megawatt Block Incentive offer substantial financial benefits, while programs like net metering (and the evolving VDER Value Stack) ensure efficient energy use and reduced utility bills.
Transitioning to solar power contributes to a cleaner environment and boosts home value without burdening homeowners with increased taxes. Connect with trusted companies like Infinity Energy to make the most of your solar home. Our expertise ensures your solar panels are set up right for your energy needs, making everything more efficient and eco-friendly.