UTILITY AND TAX INCENTIVES
Federal, state, and local governments recognize sustainable energy’s value and the expenses tied to conventional methods. As households consume increasing power, utility companies grapple with infrastructure costs. This is why utility and tax incentives often cut energy expenses by over 50% for customers.*
New York State offers homeowners a dollar-for-dollar reduction in the income taxes that a person claiming the credit would otherwise pay. The State tax credit is based on 25% of solar’s cost to the homeowner, limited to $5,000. If you can’t claim the credit in the first year, don’t worry, it will roll over for 5 years!
20% of solar system costs can be claimed as a local property tax abatement with the NYC Department of Finance. The abatement is divided into annual 5% installments over a four year cycle. As of August 2020, the NYC PTA has been extended until 2023.
The solar investment tax credit (ITC) is a dollar-for-dollar reduction in the income taxes that a person or company claiming the credit would otherwise pay the federal government. The federal ITC is based on 30% of the homeowner’s cost to install solar. On leased systems, SunPower® collects this incentive and passes the savings on to the homeowner. Don’t wait, prices for solar equipment are on the rise!
Through the NY-Sun Program, the New York State Energy Research and Development Authority (NYSERDA) provide financing options and financial incentives for the installation of new grid-connected solar systems.
In New York & New Jersey City, a cash grant from NYSERDA of 20¢ per watt lowers the elevated cost to install solar. The installation of a 7kW solar system could earn a $1,400 deposit from the state! This incentive was once $1.00 per watt before savvy homeowners took advantage and it will continue to decrease as more people install solar systems. Kamtech and SunPower collect this grant from NYSERDA directly, reducing your cost to install solar.
In addition to the property tax exemption, you’ll pay no sales tax on your new solar system.
Installing solar panels on your home increases value up to 20 times your annual energy bill savings. We think you shouldn’t be penalized for that and many state legislators agree!
INCREASE HOME VALUE
Having a residential solar energy system on your property is known as a capital improvement which adds to your property’s value. This means that you can potentially sell your home faster and for more than homes without solar. Your investment in efficient, clean solar power also adds to the tax basis of your home. If you sell the home, this tax basis investment can be deducted from the sales price, reducing the amount of the price counted as profit. This reduces the taxes taken from the sale and may be able to help you avoid capital gains taxes on appreciation.