New York definitely needs more solar to power all those lights. Luckily, after a scare late last year that funding for New York solar rebates would dry up, the state has extended the program to June 2010. After June, nobody really knows the fate of solar rebates, so if you are thinking of adding home solar power system, get an estimate today. In the mean time, read this page so that you will have a better understanding of what you may be eligible for in the way of incentives and rebates.
Cities in New York can now offer PACE financing. That means that New York cities can now offer financing of solar systems through a special tax assessment on your property.
Yes New York has it. To recap, net metering is when customers who generate energy and put it onto the grid receive credits from the utility that they can use to power their homes when they are not generating energy (at night when the sun doesn’t shine). If at the end of the year you have produced more energy than you have used, the utility will cut you a check for the difference. Unfortunately, they will only pay wholesale rates so don’t expect a huge check.
The only caveat with the net metering program is that it is currently limited to 1% of utilities 2005 total capacity. That means, when Consolidated Edison has enough solar energy generation from residential and commercial the program will be closed to new entrants. So if you’re thinking about solar, get it soon and while you can or lobby the New York Public Utilities Commission to raise that 1% cap.
On February 16, 2010 the New York Public Service Commission (PSC) issued an order providing $12 million ($2 million per month) in interim funding to allow NYSERDA to continue the PV incentive program from January – June 2010. The order also provides that:
- Applications that exceed the $2 million monthly allocation will not be accepted;
- Incentive levels will be re-established each month;
- Incentive levels will be reduced by 10% whenever applications exceed available funding during the prior month; and
- NYSERDA may increase incentive levels by 10% for the subsequent month if available funds from the prior month remain.
So basically that means get in as soon as you can because who knows how much longer the rebate will be around.
Firstly to be eligible for the rebates you must be a customer of one of the utilities below.
- Central Hudson Gas & Electric Corporation,
- Consolidated Edison Company of New York,
- New York State Electric & Gas Corporation,
- Niagara Mohawk Power Corporation,
- Orange and Rockland Utilities, and
- Rochester Gas and Electric Corporation.
If you are eligible then the rebate is currently at $1.75/Watt up to a maximum of 5 kW per site meter and total incentives may not exceed 50% of the installed project cost.
- 25% of net (post rebate) cost up to $5000 New York state tax credit towards their NY state income taxes.
- No sales tax on your solar systems, including solar hot water.
- Recieve an additional 8.75% of solar cost property tax abatement each year for 4 years through 2010. (If you install after January 1, 2011 to the end of 2012, it decreases to 5% of system cost for the next 4 years
|Location||New York – Con. Ed District|
|Av. Monthly Electricity Bill||$150|
|System Size||5.0 kW|
|% Reduction in Electricity Bill||97|
|Cost / Watt (installed)||$7.00|
|NY State Rebate (Inc. REC Value)||$8,750|
|Federal Tax Incentive||$7,875|
|NY City Property Tax Abatement||$2,297|
|NY Tax Credit||$5,000|
|Add back income tax on credit^||$1400|
|Payback period||7 years|
|New Av. Monthly Electric Bill||$4.00…Wow!|
|Effective Monthly Loan Payment#||$88|
|NEW MONTHLY NET COST||$60|
|CO2 Emissions Saved||6,272 lbs|
^You might have to add $1400, as the IRS may treat the $5000 tax credit as income. Please check with your tax preparer.
* Tax savings will decrease as the principal is paid down. Please consult your tax preparer.
# You will have to finance the tax credits and property tax incentives for the first year until you receive your tax refund. Therefore this loan payment will be higher for the first year.
If your utility is not listed above you may be able to qualify for one of the rebate programs below. These programs are not for solar exclusively and some are only for Energy Efficiency.
- Central Hudson Gas & Electric – Residential (Electric) Energy Efficiency Rebate Program
- Long Island Power Authority – Residential Energy Efficiency Rebate Program
- Long Island Power Authority – Solar Rebate Program
- National Fuel – Residential Energy Efficiency Rebates
- National Grid – Residential (Electric) Energy Efficiency Rebate Programs (Upstate New York)
- National Grid – Solar Thermal (hot water) Rebate Program (Long Island and metro New York)
So if you are serious about solar, don’t mess around let one of our New York solar partners give you a detailed estimate of the costs and savings you can expect from installing a solar energy system on your roof.