These Solar Incentives From Feds, State, and City Sweeten the Pot for Homeowners

Sponsored By Brooklyn SolarWorks

Brooklyn SolarWorks is a Gowanus-based solar design and installation firm serving New York City's homes and businesses.

Created By Brownstoner

Many people have a similar response when they open their Con Edison bill — “how did that happen?” 

It often prompts homeowners to inquire about alternative energy, and when they do, they find that there are plenty of solar incentives in New York to install rooftop solar panels. 

Here’s a brief cheat sheet on how you can save:

Federal solar income tax credit
Solar adoptees can claim a income tax credit worth up to 30 percent of installation costs, a dollar-for-dollar reduction in the amount of income tax you owe to the IRS. Available for residential and commercial installations, it’s the key financial incentive for U.S. homeowners to invest in solar.

Some background: Established during the Bush Administration, the Energy Policy Act of 2005 has expanded the solar industry as much as 10,000 percent. In the past 15 years it’s been extended often; in 2033 the credit will step down to 26 percent, and then 22 percent the year after.

New York State Solar Income Tax Credit
The biggest NY solar incentive is this program, which allows homeowners to claim 25 percent of their solar system costs as a credit on their state income taxes — up to $5,000.

Some background: This credit, like the federal solar income tax credit, is non-refundable — it can’t be deployed to increase your refund from the state government. However, if the credit exceeds your tax liability for a single year, it can be carried over for up to five tax years.

NYS Historic Homeownership Credit
Not everyone qualifies for the New York State Historic Homeownership Tax Credit, but historic homes listed on the New York State and National Registers of Historic Places can qualify for 20 percent of the project cost. (Brooklyn Heights, Crown Heights, Prospect Lefferts Gardens, Park Slope, Sunset Park, and Flatbush are some areas that have the greatest amount of eligible properties.) When combined with other incentives, a homeowner can see nearly 95 percent of their project covered. That’s a lot of green!

NYC Solar Property Tax Abatement
NYC homeowners can claim 30 percent of the costs of a solar energy system installation as a property tax abatement. Different from a tax exemption, a tax abatement lowers the amount of property taxes you owe by applying a credit over a four year period (as opposed to reducing the property’s assessed value). The abatement amount is based on total installation costs, which includes the costs of solar PV equipment and labor.

Some background: Established in 2007 as part of Mayor Bloomberg’s PlaNYC initiative to create a more sustainable city, NYC’s Solar Property Tax Abatement program was implemented to promote renewable power by incentivizing solar installations in the city.

A caveat if you’re on the fence about adopting solar: These incentives may not be around forever. Their availability depends on state and federal budgets and the political will of Washington.

Visit Brooklyn SolarWorks to learn more about 24/7 real-time monitoring and a 30-year total system warranty.

[Photos via Brooklyn Solar Works]