The NYSERDA Megawatt Block Incentive provides a generous up-front grant for solar energy systems, delivered in a ‘dollar-per-watt’ ($/W) format. A number of factors influence the amount of the grant you may be eligible for. The questions below will help you determine your incentive. Feel free to contact us to see what the NYSERDA Grant currently in your area. We welcome your call.
1. Which region of New York do you live in and who is your utility?
2. Is your project residential or nonresidential?
3. What ‘Block’ is your region currently in?
Federal Tax Credit (ITC)
What is the Solar Investment Tax Credit (ITC)?
The Investment Tax Credit (ITC) is a 30 % federal tax credit claimed against the tax liability of residential and commercial solar system owners. The residential ITC allows the homeowner to apply the credit to his/her personal income taxes. This credit is used when homeowners and building owners purchase a solar system and have them installed on their homes or office . In the case of a business that installs, develops and/or finances the project, they would then claim the ITC tax credit.
NYS Residential Solar Tax Credits
You are entitled to claim this credit if you:
● Purchased solar energy system equipment
● Entered into a written agreement that spans at least ten years for the purchase of power generated by solar energy system equipment not owned by you.
The solar energy system must use solar radiation to produce energy to produce electricity for residential use. The system must also be installed and used at your principal residence in New York State.
How much is the credit?
The credit is equal to 25% of your qualified solar energy system equipment expenditures and is limited to $5,000.
● The solar energy system tax credit can be carried over for up to five years.
● In New York, solar equipment is exempt from NYS sales tax, and the value of a home’s solar system is exempt from local property taxes (property tax abated).
NYC Solar Panel Tax Abatement
New York City is one of 25 major U.S. cities designated by the U.S. Department of Energy as a Solar America City. Leading the nation in adopting solar technology, New Yorkers are recognizing the environmental and economic benefits of harnessing energy from the sun. In addition to cool roofs and green roofs, solar panels are among technologies becoming more common in green building.
Recognizing these benefits, the City of New York passed legislation in 2008 to provide a four-year tax abatement, or tax relief, of 5 to 8 ¾ percent of solar panel-related expenditures (up to $62,500 or the building's tax liability, whichever is less). Tax abatement applications will be accepted until December 31, 2016. For more information, visit the Solar Panel Tax Abatement section of the Department of Buildings' Solar Panels page.
For NYS residential customers, loans are available for up to $25,000 with higher cost-effectiveness standards, with repayment periods of 5, 10, or 15 years.
Option 1: Residential and Small Business/Not-for Profit On-Bill Recovery Loan
Provides the convenience of paying for energy improvements on your utility bill.
● The current interest rate is 3.49% for residential loans. Interest rates are subject to change.
● Payments will be included in monthly charges on your utility bill.
● Monthly payments may not exceed the estimated energy cost savings from the energy upgrades, which means the energy savings may cover most or all of your loan payment.
● Requires a declaration to be signed and filed by NYSERDA. The declaration is not a lien on the property, but is recorded to provide notice to others of the obligation under the loan note.
● In the event your property is sold, the unpaid balance of the loan may be transferred to the new owners.
● For full eligibility requirements and instructions on how to apply for a Residential On-Bill Recovery Loan, visit Energy Finance Solutions or call 1-800-361-5663.
Option 2: Residential Smart Energy Loan
Offers affordable interest rates, flexible terms, and simple repayment options.
● The current interest rate is 3.99%, or 3.49% if repaid through automatic bank withdrawals with repayment periods of 5, 10, or 15 years.
● Interest rates are subject to change.
● Repayments are made directly to NYSERDA’s loan servicer.
● For full eligibility requirements and instructions on how to apply, visit Energy Finance Solutions or call 1-800-361-5663.