Solar Power in New York: Stack Your Federal and State Tax Incentives

New York residents are paying among the highest electrical energy charges in years as a result of gasoline shortages and restricted availability of gasoline pipelines. Photo voltaic panels might be a viable vitality various. 

Two main investor-owned utilities servicing New York, Nationwide Grid and Consolidated Edison, deliberate for a 22% enhance in vitality charges within the state final fall. Not too long ago, Consolidated Edison unveiled a proposal to boost electrical energy charges by 4.2% this yr, 4% in 2024 and three.8% in 2025, which acquired approval from the state’s Public Service Fee, a utility regulator.

Going photo voltaic might show you how to reduce your vitality payments and lock you in a extra steady worth for years. Some folks with photo voltaic panels can considerably cut back their utility payments and even remove them.

Not too long ago, New York state made headlines by breaking a state document for many electrical energy generated by solar energy. 

“New York is without doubt one of the most strong photo voltaic markets within the U.S. with applications corresponding to NY-Solar driving important development throughout the state,” Doreen Harris, president of the New York State Power Analysis and Growth Authority, stated in a press assertion.  

New York has seen exponential development in photo voltaic installations since 2012. Based on the Photo voltaic Power Industries Affiliation, New York ranks ninth within the nation in whole put in photo voltaic capability. However with beneficiant internet metering, a 25% state tax credit score and a gross sales tax exemption, New York was named certainly one of CNET’s prime states for photo voltaic incentives.

This is what you need to know if you’re fascinated by investing in photo voltaic panels in New York.

New York photo voltaic panel prices

There isn’t any uniform value for photo voltaic panels. What you’ll pay for a photo voltaic system in a single state can be totally different in one other one as a result of contractor availability and ranging mushy prices, like gross sales tax, advertising and marketing, allowing and interconnection in addition to your vitality use habits, your roof’s situation and the kind of photo voltaic panels you like. The provision of state and native incentive applications can even decide what you’ll pay for a photo voltaic system.

The common measurement of a residential photo voltaic vitality system in New York is 7 kilowatts — decrease than the nationwide common of 8 kilowatts. The desk under reveals the overall photo voltaic panel prices and common system measurement in New York, based mostly on information from Lawrence Berkeley Nationwide Laboratory’s Monitoring the Solar report and consulting agency Wooden Mackenzie.

Photo voltaic financing choices in New York

New Yorkers have a number of choices to go photo voltaic. Every of them has its benefits and drawbacks.

Money: Shopping for your photo voltaic system with money will help you bypass any curiosity or mortgage payment funds and immediately start saving on electrical energy prices.

Financing: A photo voltaic mortgage is a superb choice if you cannot afford to purchase photo voltaic panels outright. The benefit of a mortgage is that you do not have a considerable upfront value and pays your mortgage again every month. However varied charges connected to the mortgage will be extra prices on prime of the principal cost.

Leasing: Whenever you lease photo voltaic panels, you enter a long-term contract with a photo voltaic firm. The leasing firm will set up a photo voltaic system on your private home, cost you a hard and fast month-to-month quantity for utilizing the electrical energy from the panels and retain possession over them until you wish to purchase out the system in a specified interval. The corporate will make the most of all the federal government incentives.

Energy buy settlement: Underneath an influence buy settlement, a photo voltaic developer installs photo voltaic panels in your property and prices you a hard and fast worth per kilowatt-hour for the vitality generated by the panels over a long run contract. Just like leasing, the photo voltaic firm owns the photo voltaic panels and receives all incentives.

Utilizing money to pay for photo voltaic panels requires substantial quantities upfront. However proudly owning a photo voltaic system by shopping for or financing it saves you extra money in the long run than leasing or energy buy settlement. The common payback interval for bought photo voltaic panels is six to 10 years. Nevertheless, since photo voltaic system possession is not for everybody as a result of monetary or property constraints, an influence buy settlement, leasing or enrolling in a neighborhood photo voltaic program are different options for these desirous to go photo voltaic. You could find a neighborhood photo voltaic program in your space through the use of the search instrument supplied by the New York State Power Analysis and Growth Authority.

New York photo voltaic panel incentives and rebates 

Whereas the value of photo voltaic panels has come down by 64% over the past decade, they’re nonetheless an costly funding for most individuals. As a New York resident, you should utilize federal and state incentives to decrease the price of photo voltaic panels.

New York photo voltaic corporations

Based on the Photo voltaic Power Industries Affiliation, 758 photo voltaic corporations function in New York, together with 156 photo voltaic installers. Listed here are among the prime photo voltaic corporations you could wish to contemplate if you happen to resolve to go photo voltaic, together with some from CNET’s picks of prime nationwide installers.

Momentum Photo voltaic

Momentum Photo voltaic serves 11 states, together with New York. The corporate works with its prospects from starting to finish, together with the sale, design, allowing, set up and interconnection of photo voltaic programs. Momentum Photo voltaic installs photo voltaic batteries solely in 5 states, together with New York. The corporate supplies a 25-year high quality of labor and a 25-year product guarantee. Momentum Photo voltaic prospects should buy or finance photo voltaic panels or signal a lease or an influence buy settlement. 

Palmetto Photo voltaic

Palmetto Photo voltaic is a nationwide photo voltaic panel and battery installer serving 24 states and Washington, D.C. The corporate gives a 25-year efficiency and high quality of labor guarantee. Like most nationwide photo voltaic corporations, Palmetto supplies varied financing choices, together with photo voltaic loans, energy buy agreements or leases.

Solanta

Solanta installs photo voltaic panels, batteries and EV chargers for residential prospects. As a New York-based photo voltaic firm, it could actually show you how to navigate native allowing necessities, apply for state incentives and obtain custom-made experience to your house. The corporate gives financing and leasing choices to prospects. Solanta offers you a 10-year high quality of labor guarantee — decrease than competitor warranties.

SUNation Power

SUNation Power is a New-York based mostly installer of photo voltaic panels, batteries and EV chargers. The corporate additionally gives post-installation vitality monitoring companies, annual inspections, photo voltaic pest guards and photo voltaic snow guards. Based on SUNation Power, it would not outsource its set up work or cost hidden charges for its prospects. SUNation Power supplies a 25-year product and high quality of labor warranties. It gives financing choices by way of a number of banks and credit score unions. Nevertheless, it is unclear if it gives leasing or energy buy settlement choices.

SunPower Photo voltaic

SunPower is without doubt one of the nation’s largest photo voltaic installers. The corporate supplies a 25-year product, efficiency and high quality of labor warranties. SunPower permits you to purchase a photo voltaic system outright, finance it or enter a photo voltaic lease or energy buy settlement. The corporate’s financing department SunPower Monetary supplies loans to underserved communities at inexpensive charges.

Essential set up components

Whereas photo voltaic panels will be a horny funding, particularly with rising electrical energy prices, it is value mulling over varied components to find out if photo voltaic is the correct alternative for you.

Roof situation and pitch: Your roof’s pitch could make a photo voltaic funding simpler or more durable. Decide whether or not your roof has the proper pitch to provide sufficient photo voltaic vitality. Based on the US Division of Power’s estimates, a 15- to 40-degree angle is perfect for photo voltaic panel effectivity. Converse with knowledgeable photo voltaic installer to find out whether or not your roof has sufficient area for photo voltaic panels or if it must be repaired or changed earlier than attaching panels.  Insurance coverage protection: Together with your photo voltaic system in your house owner’s insurance coverage coverage may give you peace of thoughts. It has added safety in case of an unexpected pure catastrophe. Ask your insurance coverage firm in case your coverage will cowl the photo voltaic system and add it to the insurance coverage as soon as the set up is full.Funding vs. time: Most photo voltaic tasks make sense as long-term commitments. If you consider promoting your own home in a few years, tying your self to an costly funding earlier than it pays itself off might not be prudent.Renting vs. proudly owning your private home: When you lease your private home, you should get permission to put in photo voltaic panels in your rooftop. Investing in photo voltaic panels in a rented home could not make sense since you do not personal it and might have to maneuver in a number of years. The easiest way for renters to go photo voltaic is to hitch a neighborhood photo voltaic program.

New York photo voltaic FAQs