New York loves Solar
New York has a mature solar market and is ranked 10th nationally in terms of installed solar. A law passed in 2019 requires 70% of electricity to be produced from renewable sources by 2030. New York utilities are also required to offer net energy metering providing credits for monthly net excess generation. This means that solar customers in New York can get paid for the energy they produce! Going solar in NY is a great choice for anyone looking to save money on energy. Not only does NY legislation encourage it, but there are incentives available right now to help you make the decision. Solar can also keep you running in case power outages happen and it helps you maintain predictable payments.
NEW YORK STATE SOLAR INCENTIVES
SAVE OVER 70% OF YOUR OUT OF POCKET COSTS
Think NYC solar is a luxury? Think again! New York City offers some of the nation's best solar incentives, slashing your installation cost by over 75% through federal, state, and local tax credits and rebates. That's thousands saved upfront and years of lower energy bills! Worried it's complicated? We'll guide you through every step. Ready to start saving? Get in touch before these amazing incentives expire!
RESIDENTIAL INCENTIVES
Federal, state and city financial incentives are available to support investments in solar. Below is an overview of the incentives available for installing a solar electric system on a residential building in New York State. Some of these incentives are tax related and vary from case to case, so you should consult your tax professional to determine your eligibility for tax benefits, and whether any incentives you receive are considered taxable income.
​
Federal
Federal Tax Credit: Residential building owners are eligible to receive a federal tax credit (not a deduction) that can reduce the amount of federal income tax they owe or increase their tax refund. The credit is based on 30% of the total system cost (less any NY-Sun rebates) for residential systems placed in service between December 31, 2021, and January 1, 2033.
New York State
NY-Sun Incentive:
The NY-Sun Initiative provides incentives for installing solar electric systems throughout the state. Incentives are distributed through three regions: Con Edison, PSEG Long Island, and Upstate The NY-Sun incentive is funded by the System Benefits Charge (SBC) that appears on your utility bill and is paid directly to the installing contractor.
Under the Megawatt Block incentive structure, each region and sector (commercial or residential) is assigned a series of MW targets at certain incentive levels, referred to as “blocks.” As applications are submitted, incentives at the current level are claimed until the MW target for that block is reached. The block is then closed and a new block, with a new target and a lower incentive level, is started. Once all of the blocks for a particular region and sector are filled, an incentive for that region and sector will no longer be offered. View real time available incentives by block on the Megawatt Block Dashboard.
New York State Tax Credit: Residential building owners who install solar may be eligible for a tax credit for the lesser of 25% of the installed cost of the solar energy system (up to 25 kW on net-metered systems) after the NYSERDA incentive, or $5,000.
Sales Tax Exemption: New York exempts the sale and installation of residential solar-energy systems from the state's sales and compensating use taxes. The exemption applies to solar-energy systems that utilize solar radiation to produce energy designed to provide heating, cooling, hot water and/or electricity. The exemption does not apply to solar pool heating or other recreational applications. In addition, New York City and some other local jurisdictions also grant exemption from local sales and use taxes for residential solar energy systems.
NYS Historic Homeownership Rehabilitation Tax Credit: This credit can reduce the cost of solar projects by 20% for homeowners in eligible districts. The Historic Homeownership Rehabilitation Credit (HHRC) covers 20% (up to a $50,000 in credits) of the cost of improvements – including solar installations – that are completed on owner-occupied homes located within:
1. historic districts listed on the National Register of Historic Places AND
2. income-qualified census tracts.
These zones continue to form and expand.
​
New York City
New York City Property Tax Abatement (PTA): Building owners who place a grid-connected solar energy system into service from January 1, 2024 to January 1, 2034 are eligible for a four-year Tax Abatement of 7.5% per year of the installed cost of the system, for a total of 30%. Abatements are applied after the NY-Sun Incentive and capped at $62,500 per year or $250,000 total. This tax abatement is spread equally over four years and may not exceed your property tax liability for any given year.
If you wish to apply for this incentive, you or your solar installer will need to hire a New York State registered architect or professional engineer to file the paperwork with the Department of Buildings. For more information, visit: NYC DOB Tax Abatement
Solar panels perform in all kinds of weather
Going solar is a big decision, and although there are many factors you should consider, local weather shouldn’t be a deterrent. Solar panels are designed to work in almost any type of weather… even snow and clouds!
Sunny days are ideal for solar energy production. The more direct sunlight your panels receive, the more electricity they generate. Peak efficiency occurs on bright, clear days, making regions with high sun exposure particularly beneficial for solar installations. However, even in areas with seasonal variations, solar systems can store excess energy for later use or be connected to the grid for continuous power supply.
Rainy weather might seem like a downside for solar energy, but it actually provides benefits. Rain helps keep your solar panels clean by washing away dust, pollen, and debris, which can improve their efficiency. Even on rainy days, solar panels can still produce electricity, though at a lower output due to diffused sunlight. If your system includes battery storage, you can store energy from sunny days for use during periods of lower production.
Solar panels can still generate electricity on cloudy days, though at reduced efficiency—typically 10-25% of their maximum capacity. Advanced solar panel technology is designed to capture diffuse sunlight, ensuring that even in overcast conditions, you’ll still receive power. Some of the world's leading solar-powered countries, like Germany, experience frequent cloudy weather but continue to thrive with solar energy due to efficient system design and energy management.
Bottom Line: Solar energy is a reliable and effective investment in all types of weather. With modern panel technology, energy storage solutions, and net metering programs, homeowners can benefit from solar power regardless of climate conditions! 🌞⚡💡
