(not as much as you might think)
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Let’s just speak plainly here.
NY incentivizes Solar purchasers in EXORBITANT ways. VARIOUS ways.
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NET METERING:
Let’s start with one of the most significant. NY Utilities offer something almost no other states offer:
A true, 1:1 Net Metering, Solar Compensation Model.
What this means, is that when a Solar producer creates 1 kWh of electricity that isn’t actively used when produced, it is sent to the Utility to be “banked,” and 1 kWh is distributed back to your property for free when you are using electricity, but not producing it.
Isn’t that pretty much what a battery does?
Well, kind of.
But you’re doing it without having to spend 10’s of thousands of dollars on batteries. Batteries that hold a maximum of 10-20 kWh of electricity. The Utility will never run out of capacity to credit your account with kWh. The Utility is also a battery that you don’t have to pay to replace when it dies. You don’t have to pay for any ongoing maintenance to the Utility.
This model of kWh compensation will allow for you to have thousands of kWh stored up with the Utility from overproducing in the summer. The goal would be to have enough kWh credits banked, at this 1:1 exchange rate, to carry you through NY winters when Solar production is minimized. This is a big part of what equalizes the cost/value between Solar in NY vs any sunny state. We need a few more panels, but we don’t need batteries, which puts our savings over $10,000 vs a southern counterpart, for example.
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NYSERDA GRANT
The NYSERDA Grant is paid out by NY Utilities from a pool of money that YOU, as a NY State resident, have been paying money into every month since you have had a Utility Bill. The SBC Charge on each bill is for the “money pool” that everyone contributes to each month. This is your opportunity to get a significant portion of that back!
Currently, NY Utilities are offering $0.20/Watt for Solar installed on Residential properties through the NYSERDA Program. This amount IS on pace to drop down to $0.15/Watt, likely sometime in March 2025.
So, if you were buying a 10 kW system (10,000 Watts), currently, your Grant would reduce your cost by $2,000.00 right off the top. Soon, this will instead be $1,500.00.
Very few Incentive Systems like this one exist anywhere in the US, further decreasing the cost of transitioning to Solar in NY compared with other states.
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NYS TAX INCENTIVE
NY State offers Tax Filers, as Incentive, a contribution of 25% of the cost of your system, post-NYSERDA Grant, with a ceiling of $5,000.
With a NYS Tax Liability that meets or exceeds the amount of Incentive, you will recoup this money in the Tax Year of installation. These Incentives can “roll-over” for up to five years. This means that if your Tax Liability is exactly $2,000.00 every year, and you are Awarded the full Incentive with your Purchase, it is likely that you will recoup $2,000.00 in the year of install, an additional $2,000.00 in the following year, and $1,000 in year three.
** IT IS ALWAYS RECOMMENDED THAT YOU SEEK COUNSEL FROM YOUR CPA, OR TAX PROFESSIONAL, HOW YOU MAY BEST RECOUP THESE DOLLARS WITH YOUR PARTICULAR FILING **
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ADDITIONAL INCENTIVES
FEDERAL TAX INCENTIVE
The Federal Government offers Tax Filers, as Incentive, a contribution of 30% of the cost of your system, post-NYSERDA Grant, without ceiling.
With a Federal Tax Liability that meets or exceeds the amount of Incentive, you will recoup this money in the Tax Year of installation. These Incentives can “roll-over” for up to five years.
** IT IS ALWAYS RECOMMENDED THAT YOU SEEK COUNSEL FROM YOUR CPA, OR TAX PROFESSIONAL, HOW YOU MAY BEST RECOUP THESE DOLLARS WITH YOUR PARTICULAR FILING **
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USDA GRANT
The USDA Grant is a National Grant, however, the ways it applies (and what it may be used for) varies from state to state.
It is a bit more subjective, and fluid to apply for, but this Grant (for Agriculturally-zoned property) can cover up to 50% of project costs.
Click below to see how your project(s) might qualify for Grants and Loans through the USDA:
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IN SUMMARY
It is entirely realistic that 50%-60% of your system/installation costs will be covered by Grants and Tax Incentives… and it is a certainty that 40% or more will be offset.
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A HYPOTHETICAL COST ANALYSIS
Let’s take a simple round number situation and look at how these Grants & Incentives work in real life application.
A home owner uses 12,000 kWh per year. Because their rates have jumped again, now to $0.185 per kWh ($185.00/mo, or $2,220.00/yr)
Given their locale, system pitch and azimuth, a 10 kW system (10,000 Watts of Solar Panels) will offset their current entire annual usage.
Due to the materials used, and how things need to be installed at their property, the system will cost $32,000.00 to install.
What should this person expect to pay for their system?
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Total Cost $32,000.00
NYSERDA -$2,000.00 (10 kW x $0.20)
True Cost $30,000.00
Fed Incnt -$9,000.00 ($30K x 0.30)
State Inct -$5,000.00 (Max: $30K x 0.25)
Final Cost $16,000.00
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As you can see, this person can OWN their own electricity for the next 30 Years for $16,000.00.
Let’s not even include a “for certain” inflation from year-to-year.
At $2,220 per year, this person will spend more than that in the next 8 years alone. Even without inflation… there’d be 20+ Years of saving $2,220 per year, after the System paid itself off.
That being said, inflation has averaged 3.27%/yr for the past 20 Years. It can be forecast that the next 20 Years will Inflate at the Rate of 3.52%/yr. At that Rate, $16,000 will get you just over 6 Years of electricity… or you can get the next 30 Years for that amount.
So what would this person’s 30 Year Electricity Expenditure look like if they weren’t to pay $16,000.00 for solar? Let’s take a look at that. We will utilize a 3.52% Inflation rate, even though Utilities over the past 5 years are actually already inflating more than that.
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Invest in the Sun, Invest in Your Future 