New York State has one of the most ambitious solar programs in the country. Currently the state utilizes net metering as the main mechanism to earn value with solar. Net metering is a one for one credit for every kWh of electricity your solar system produces, meaning the utility credits you what they would have charged you. Given New York State’s high cost of electricity with respect to other states net metering is particularly valuable. New York also has state and utility based incentives for solar in addition to federal incentives.
The Federal Solar Investment Tax Credit (ITC)
This is a dollar for dollar credit worth 26% of the cost a solar system. This credit can be used, for residential, commercial, and utility scale solar projects. The credit is applied for the year that construction of a project begins and phases out over time.
- For all projects started in 2021 and 2022 this is worth 26% of project costs
- For all projects started in 2023 this is worth 22% of project costs
- For Commercial projects started in 2024 this incitive is worth 10% of project costs and goes away for residential projects.
Commercial Solar Projects in New York
For residential Solar Installations on your primary residence in the state of NY you are eligible for a state tax credit worth 25% of the cost of your solar system with a cap of $5,000.
Learn more here.
New York State offers incentives based on the size of your solar system. This incentive applies to Residential, Commercial, and Utility Scale systems, each of which have different incentive levels and range from 1$/Watt to 0.15$/Watt. These incentives decrease over time. Click here to see where current incentive levels stand.
Incentive levels also depend on where in New York your system is installed. The three different geographic zones are as follows:
- New York state has a community solar program where even if you do not own a home or can’t afford the upfront cost of installing a solar system you are still able to save with solar. Residents can subscribe to a large community solar project within their utility and save money on their electric bills with solar without having to install panels on their roofs. Learn more here.For developers and landowners there are additional incentives available through NY-Sun Megawatt program based on the size of the system as a $/Watt incitive. You can view the current incentive levels for community solar using this link.