New York offers several incentives to support solar energy installations, making it an attractive option for residents looking to reduce their carbon footprint and energy costs. Here’s a summary of the key programs:
NY-Sun Initiative Megawatt Block Program
Incentive Value: $0.20/watt in Con Edison area, $0.30/watt upstate
Details: Managed by NYSERDA, this program provides a cash incentive per watt of solar capacity. It’s available for home solar systems installed by NY-Sun participating contractors.
New York State Solar Equipment Tax Credit
Incentive Value: 25% of home solar system costs, up to $5,000
Details: This state tax credit is available for homeowners and can be combined with the 30% federal tax credit. It’s designed to offset the cost of solar panel installations for primary residences.
Retail Energy Storage Incentive
Incentive Value: $250 per kWh of battery capacity
Details: Offers incentives for solar battery systems, with funding currently available only in Long Island. This helps reduce the cost of adding energy storage to solar installations.
Net Metering
New York provides net metering for solar systems up to 25 kW, allowing excess solar generation to roll over to future bills. Non-residential projects up to 750 kW also qualify.
Federal Solar Tax Credit
The federal solar tax credit, officially known as the Investment Tax Credit (ITC), offers significant savings for solar energy system installations across the U.S. Here are the key details:
- Credit Value: 30% of solar installation costs
- Duration: Available through 2034
According to the March 2023 Solar Market Insight Report, the average cost for installing solar panels is $3.30 per watt. For instance, if you install a 6-kW solar system costing $19,800, you can claim a federal tax credit of $5,940 on your tax return.
This credit not only reduces the upfront cost of solar installations but also encourages more homeowners to invest in renewable energy solutions.