|
| Rebate Type |
Amount |
| Solar Power Installation Rebate |
$3,000 to $5,000 per kW installed, up to 10kW. |
Property Tax Exclusion |
100% of system value for 15 years, except for New York City (see below) |
| Sales Tax Exemption |
100% of system sales tax |
| State Tax Credit |
25% of installed cost, up to $5,000 |
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NYSERDA - Solar Power PV Incentive Program
| Incentive Type: |
New York State Solar Power Rebate Program |
| Eligible Renewable Technologies: |
Solar Power Photovoltaics |
| Applicable Sectors: |
Commercial, Industrial, Residential, Nonprofit, Schools, Local Government, State Government, Institutional, (Must be customer of investor-owned utility in NY) |
| Incentive Amount: |
$3-$5/watt DC, varies by sector, installed capacity, and system type;
Incentive may be reduced for potential production losses associated with shading, system orientation, tilt angle, and other factors |
| Eligible System Size: |
No maximum size restriction, but residential incentives are capped at 10 kW and non-residential incentives are capped at 50 kW per site/meter. Systems may not exceed 110% of demonstrated energy demand. |
| Equipment Requirements: |
Systems must be new, UL-listed, and compliant with all applicable performance and safety standards; minimum five-year warranty on all equipment and two-year warranty on battery back-up systems. |
| Installation Requirements: |
Installation must comply with all federal, state and local codes; must be grid-connected and installed by a pre-approved contractor; must comply with New York's Standard Interconnection Requirements |
| Program Budget: |
$38.8 million (2008-2009)* |
| Ownership of Renewable Energy Credits: |
NYSERDA for first 3 years of system operation, thereafter customer/generator |
| Funding Source: |
RPS surcharge |
| Project Certification |
Systems may be inspected by NYSERDA and/or other authorities having jurisdiction; Performance monitoring and data reporting required for first 3 years of system operation |
| Expiration Date: |
09/30/2009 |
| Website: |
http://www.powernaturally.org/Programs/Solar/incentives.asp |
The New York State Energy Research and Development Authority (NYSERDA) provides incentives of $3 to $5 per watt (DC) to eligible installers for the installation of approved, grid-connected photovoltaic (PV) systems. The maximum capacity supported by the program is 50 kW for non-residential systems and 10 kW for residential systems. Larger systems are permitted, but incentives are based on these capacity caps. Incentives are only available to eligible installers, and incentives must be passed on to customers. Once eligible, installers reserve incentives for approved systems, for specific customers, on a first-come, first-served basis for as long as funds are available.
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During 2008 and 2009, this program will provide $38.8 million in funding for PV systems.* The program continuously accepts applications from installers who seek to participate. The goal is to increase the network of eligible installers across the state, offering customers a choice of qualified or certified installers in their area.
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Installer eligibility will be determined and maintained based on factors such as acceptance of all program terms and conditions, training, installation experience, track record related to utility interconnections, overall performance, monitoring, customer references, customer satisfaction, and commitment to become certified through a national certification program. NYSERDA is providing accredited training opportunities for PV installers to the greatest extent possible. Training opportunities are posted at www.powernaturally.org. The program web site (listed above) provides a list of eligible installers. There are currently approximately 75 installers on the list.
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Program incentives effective January 29, 2008, based on direct-current (DC) module ratings at standard test conditions, are as follows:
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Residential Incentives
|
|
$4.00/W up to 5 kW |
|
$4.50/W for New York Energy Star homes up to 5 kW |
| $4.50/W for all building integrated PV systems up to 5 |
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For additional capacity above 5 kW, all residential incentives will be reduced by $1.00/watt and all residential incentives will be capped at 10 kW. |
New York Solar Sales Tax Exemption
| Incentive Type: |
Sales Tax Exemption |
| Eligible Renewable Technologies: |
Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Photovoltaics |
| Applicable Sectors: |
Residential |
| Amount: |
100% Exemption |
New York enacted legislation in July 2005 exempting 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. There does not appear to be an expiration date* for this incentive.
The law allows municipalities the option of granting the local exemption. If a city with a population of 1 million or more chooses to grant the local exemption, it must enact a specific resolution that appears in the state law. The New York Department of Taxation and Finance publishes a variety of sales tax reports detailing local tax rates and exemptions, including those for solar energy equipment. The solar sales tax list is updated several times per year.
New York Local Property Tax Option - Solar, Wind & Biomass Energy Systems Exemption
| Incentive Type: |
Property Tax Exemption |
| Eligible Renewable Technologies: |
Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Heat, Photovoltaics, Wind, Biomass, Daylighting, Anaerobic Digestion |
| Applicable Sectors: |
Commercial, Industrial, Residential, Agricultural |
| Terms: |
15-year exemption |
| Website: |
http://www.orps.state.ny.us/assessor/manuals/vol4/part1/section4.01/sec487.htm |
| Effective Date: |
Before 7/1/88 or between 1/1/91 & 12/31/2010 |
| Expiration Date: |
12/31/2010 |
Section 487 of the New York State Real Property Tax Law provides a 15-year real property tax exemption for solar and wind energy systems constructed in New York State. As currently effective, the law is a local option exemption, meaning that local governments are permitted decide whether or not to allow it. The exemption was mandatory prior to a 1990 reenactment in which the local option clause was added. The exemption is valid unless a government opts out of the exemption, as opposed to the more common practice of requiring governments to "opt-in" in order to offer an exemption.
New York Solar and Fuel Cell Tax Credit
| Incentive Type: |
Personal Tax Credit |
| Eligible Renewable Technologies: |
Solar Water Heat, Solar Space Heat, Photovoltaics, Fuel Cells |
| Applicable Sectors: |
Residential, Multi-Family Residential |
| Amount: |
25% for solar-electric (PV) and solar-thermal systems; 20% for fuel cells |
| Maximum Incentive: |
$5,000 for solar-energy systems; $1,500 for fuel cells |
| Carryover Provisions: |
Excess credit may be carried forward five years |
| Eligible System Size: |
10 kW maximum for solar-electric systems*, except 50 kW for solar systems owned by condominium or cooperative housing associations;
25 kW maximum for fuel cells |
| Equipment/Installation Requirements: |
Systems must be new and in compliance with all applicable performance and safety standards |
Enacted in August 1997, this personal income tax credit originally applied to expenditures on solar-electric (PV) equipment used on residential property. The credit, equal to 25% percent of the cost of equipment and installation, was expanded in August 2005 to include solar-thermal equipment. The solar-thermal provisions apply to taxable years beginning on and after January 1, 2006.
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The credit is capped at $3,750 for solar-energy systems placed in service before September 1, 2006, and capped at $5,000 for solar-energy systems placed in service on or after September 1, 2006.
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Any amount of credit that exceeds a taxpayer's liability in a given tax year may be carried forward for the five following taxable years. Any amount of the system cost provided by a grant from any source is not eligible for this credit.
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Solar-energy equipment is defined as "an arrangement or combination of components utilizing solar radiation, which, when installed in a residence, produces energy designed to provide heating, cooling, hot water or electricity." The credit may not be used for pool heating or other recreational applications.
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Systems must comply with the 10 kW capacity limit on residential, net-metered solar-energy systems*. In 2007, legislation was passed increasing the capacity limit to 50 kW for condominiums and cooperative housing associations. In addition, members of condominium management associations and tenant stockholders of cooperative housing associations are now allowed to claim a proportionate share of the total system expense towards the tax credit. These changes are valid for the Jan. 1, 2007 tax year.
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Fuel cells installed at a principal residence are eligible for a 20% tax credit, with a maximum credit of $1,500. To qualify, fuel cells must provide a maximum rated baseload capacity of 25 kW and must utilize proton exchange membrane (PEM) technology.
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New York City - Property Tax Abatement for Photovoltaic (PV) Equipment Expenditures
| Incentive Type: |
Property Tax Assessment |
| Eligible Renewable Technologies: |
Photovoltaics |
| Applicable Sectors: |
Commercial, Industrial, Residential, Nonprofit, Schools, Multi-Family Residential, Institutional |
| Amount: |
Installed from August 8, 2008 to December 31, 2010: 8.75% of system expenditures per year for 4 years (total of 35%);
Installed from January 1, 2011 to December 31, 2012: 5% of system expenditures per year for 4 years (total of 20%) |
| Maximum Incentive: |
$62,500 annually or the amount of real property taxes owed during a year |
| Effective Date: |
08/08/2008 |
In August 2008 the State of New York enacted legislation allowing property tax abatements for photovoltaic (PV) system expenditures made on buildings located in cities with a population of 1 million or more people. This essentially limits the abatement to systems installed within New York City. Eligible buildings include all real property except utility real property.
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The abatement allows building owners to deduct from their total real property taxes* a portion of the expenditures associated with installing a PV system on an eligible building. Systems placed in service between August 8, 2008 (the effective date) and December 31, 2010 are eligible for an abatement of 8.75% of eligible expenditures annually for four years. Systems placed in service between January 1, 2011 and December 31, 2012 are eligible for an abatement of 5.0% of eligible expenditures annually for 4 years. Thus the total property tax benefit can amount to either 35% or 20% of the installed system cost depending on when it is built.
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The maximum abatement during a year is $62,500 or the amount of real property taxes owed during the year. Unused balances may not be carried forward to subsequent years. Eligible expenditures include reasonable expenditures for materials and labor associated with planning, designing, and installing the system. Expenditures incurred using a federal, state, or local grant are not eligible, nor are interest or finance charges.
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| The abatement program will be administered by the Department of Finance in cooperation with the agency or agencies designated for this purpose by the Mayor. Applications for the abatement may not be filed until the beginning of 2009, although systems placed in service on or after August 8, 2008 remain eligible for the abatement. It is important to note that claiming the abatement does not effect whether a building owner can claim New York's real property tax exemption on the value added by solar, wind, and farm-based biogas energy systems. |
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