Newburgh, NY

The New York Solar Equipment Tax Credit is a state tax incentive that helps homeowners reduce the cost of going solar. This credit allows you to claim 25% of your qualified solar energy system equipment costs, up to a maximum credit of $5,000. The solar system must be installed at your primary residence in New York State and used for heating, cooling, hot water, or electricity generation.

You can qualify for this credit in three ways: by purchasing solar equipment outright, entering into a lease agreement for solar equipment, or signing a power purchase agreement (PPA) that spans at least 10 years to buy electricity from solar panels you don’t own. While this credit isn’t refundable (meaning you won’t get cash back if the credit exceeds your tax liability), any unused portion can be carried forward for up to five years, giving you flexibility to use the full benefit over time. This makes solar more affordable by reducing your New York State income tax bill dollar-for-dollar.

New York’s Property Tax Exemption for solar energy systems allows homeowners to avoid paying property taxes on the increased value that solar panels add to their home. When you install a solar system, your home’s assessed value typically increases, but this exemption protects you from paying higher property taxes on that added value for 15 years. The exemption applies to the difference between your home’s value with and without the solar system.

To qualify, your solar system must be constructed between January 1, 1991 and January 1, 2030, or have existed before July 1, 1988. The system must include equipment like solar panels, inverters, batteries, and other components necessary for collecting and converting solar energy. However, this benefit isn’t automatic – each local government (county, city, town, village, and school district) can choose whether to offer this exemption, so you’ll need to check if your area participates. Some local governments may also require you to enter into a payment agreement instead of receiving the full exemption, so it’s important to understand your local rules before installing your system.

New York’s Sales Tax Exemption for residential solar energy systems helps homeowners save money by eliminating sales tax on solar equipment purchases and installation. This state-level incentive has been available since 2005 and automatically removes the 4% New York State sales tax and the additional 3/8% Metropolitan Commuter Transportation District tax from your solar investment.

The financial benefit varies by location since local tax exemptions depend on whether your county or city has chosen to participate. In areas that provide full exemption (like Albany County, Erie County, Nassau County, Suffolk County, and New York City), you pay zero sales tax on your solar system. However, in areas without local exemption, you’ll still pay local sales tax rates ranging from 1.5% to 4.5%. For example, on a $20,000 solar system in a fully participating area, you could save $875 in total sales taxes, while in non-participating areas you’d save about $875 in state taxes but still pay the local portion.

This exemption applies to all residential solar energy systems equipment and installation services with no income limits, system size restrictions, or application deadlines. The tax savings are automatically applied at the point of purchase, so you don’t need to file any paperwork or wait for rebates. Keep in mind that local participation can change over time, so it’s worth checking the current status of your specific location when planning your solar installation.

The NY-Sun Program is New York State’s comprehensive solar incentive initiative that provides financial support to make solar installations more affordable for homeowners, businesses, and communities across the state. Administered by NYSERDA (New York State Energy Research and Development Authority) in partnership with local utilities, this program offers direct cash incentives to reduce the upfront cost of installing solar panels on your property.

The program uses a regional approach with three main areas: Con Edison territory, Long Island, and Upstate New York. Each region has allocated megawatts (MW) of solar capacity eligible for incentives, organized into blocks that decrease in value over time as solar becomes more cost-effective. While the provided information doesn’t specify exact dollar amounts, incentives are available for residential installations until each region’s allocated capacity is fully subscribed. The program is designed to phase out incentives gradually as the solar market becomes self-sustaining, so acting sooner rather than later ensures access to higher incentive levels before they decrease or become unavailable.

Net metering in New York allows homeowners with solar panels to receive credit for excess electricity they generate and send back to the power grid. When your solar system produces more energy than your home uses, that extra power flows to the grid and you receive credits on your electric bill. These credits offset the electricity you use from the grid when your solar panels aren’t producing enough power, like at night or during cloudy days.

New York uses a 1:1 net metering system, meaning you receive full retail rate credit for every kilowatt-hour of solar energy you export to the grid. Your utility company nets your monthly solar production against your total monthly electricity consumption. Any excess credits roll over from month to month and year to year for up to 20 years, after which unused credits expire. However, you won’t receive cash payments for excess credits – they can only be used to offset future electric bills.

All major New York utilities participate in net metering, but each charges a monthly Contribution Benefits Charge (CBC) fee that varies by utility company. This solar-specific fee ranges from $0.85 per kW-DC per month (PSEG Long Island) to $1.45 per kW-DC per month (National Grid). For example, if you have a 10 kW solar system with National Grid, you’d pay an additional $14.50 monthly fee. The type of credit you receive (per kWh or monetary) depends on whether you’re on a time-of-use rate schedule with your utility.