How to Switch to Solar Power?
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Solar Panel Installation in New York
Many people are surprised to learn that New York is one of the most affordable places to purchase a home solar panel system. New York offers one of the largest financial incentives available at the state level and NYC level which can be combined with the federal solar tax credit, resulting in huge savings for homeowners who want to go solar.
New Yorkers spend anywhere from $100 or $120 t0 $300 per month on their electricity bills. Since electricity costs are relatively high in New York and will only increase with time, savvy homeowners know that converting to solar is an investment in their future.
If you’re interested in making the switch to clean, renewable solar energy, this page will help you understand how much the decision will cost you. Home solar systems are more affordable than ever and financial plans are available to help you make the change for as little as $0 down! Read on to learn more about the options available to you.
How a Residential Solar Panel System Works
Solar panels offer homeowners a way to go green with very little inconvenience. Solar energy systems are silent, can be installed in an unobtrusive location, and of course, let you secure lower energy prices for the next 25 years.
Solar panels are typically installed on the roof of a home at an angle that allows them to capture the most sunlight. When sunlight hits the panels, direct current (DC) electricity is generated. From here, the DC current is sent into an inverter so it can be converted to alternating current (AC) electricity, which is the type of electricity used by appliances in your home.
New York Solar Rebates and Incentives
A meter attached to the system keeps track of how much electricity your system generates and how much you consume within the home. Surplus electricity is fed back into the power grid. Since New York is a state that utilizes Net Metering, you’ll receive credits for your surplus electricity, which can be used on days when your panels don’t generate sufficient electricity for your home.
How Much Does It Cost & How Much Can I Save?
The cost for a typical 5kW residential solar system in New York is just under $17,000. You have several options available when it comes to obtaining a solar panel system for your home.
- The average cost for a 6kW system in New York is $24,000.
- With the 25% New York solar tax credit, the price is reduced to $18,000.
- On top of this, you can still claim the 26% federal solar tax credit, further reducing the cost to $11,760.
The average electric bill in New York is $150 per month. With this figure in mind, your system would be paid for within 8 years. Over the 25-year lifespan of your solar panel system, you would save a further $34,200 after your system is completely paid for!
The numbers provide a baseline for savings. Energy costs in New York are predicted to increase substantially over the next 20 years, so your savings will likely be much higher.
Solar Incentives & Rebates in New York
New York promised to obtain at least 70% of its energy from renewable resources by 2030. In order to reach that goal, policymakers created a number of financial incentives and rebates to make solar energy more affordable and appealing to the average New Yorker. While other Americans must rely solely upon the federal solar tax credit to lower the cost of their system, New Yorks can utilize several other local rebates. These include:
New York State Solar Equipment Tax Credit – 25% Savings
This tax credit allows you to reduce your state tax payments by 25% of the total cost of your solar energy system (with a cap of $5,000). This means that the entire cost of purchasing and installing your solar panels will be reduced by 25%. This tax credit isn’t only for the wealthy – if you don’t owe enough state taxes to fully use the credit, you can roll it over to future tax years.
Unlike the federal solar tax credit, New York’s solar equipment tax credit can also be applied to a lease. This means you don’t have to purchase the system to claim the credit, making a lease more appealing in New York than other states.
The Megawatt Block Incentive Structure
In order to encourage more New Yorkers to invest in solar, the Megawatt Block incentive provides a direct cash rebate for solar panel installations. The cost is determined by the number of watts in your system and the amount of solar energy already produced in your neighborhood. The early bird catches the worm – in order to make the most of this offer, you’ll need to be among the earliest adopters of solar in your area. Currently prices are as high as $1/watt.
New York Net Metering
Net metering is a common and popular policy in the United States, but not all states are generous with their compensation. In New York, you’ll be fairly compensated for any surplus electricity that your system generates. Your credits will be stored so they can be used during the winter months when less solar energy is generated. If you have excess credits at the end of the year, your utility may provide financial compensation for these credits.
Federal Solar Investment Tax Credit (ITC) – 30% Savings
On top of the generous tax credits and rebates offered at the local level, New Yorks are also eligible for the well-known ITC. This provides a further 30% savings on your system, after all other rebates/credits are applied. Like the New York tax credit, you’ll receive a reduction in your tax bill for 30% of the cost of your system. If you don’t have a high enough tax liability that year, the credit can be rolled over to subsequent years.
Why Choose Momentum Solar
Momentum Solar is committed to helping New Yorkers convert to clean, solar energy. We provide guidance at every step in the process, which includes helping you determine the best way to finance your system. In New York, three options are available to you:
- Pay upfront for your system: If you are able to, paying for your system outright offers substantial savings over time.
- Take out a loan: Many New Yorkers don’t have enough money to pay for their system outright, but taking out a loan allows them go solar sooner. There are several types of loans available and we can help you find the best one for your financial situation. With a loan, you’ll be able to get a solar system installed on your property for $0 down so you can start experiencing cost savings sooner. Once the loan is paid off, you’ll own your system.
- Lease your solar panel system: Leasing or a solar power purchase agreement (PPA) are attractive options for New Yorkers who want to enjoy the savings associated with solar without owning the system. If you choose to lease, you’ll still be able to take advantage of the New York solar tax credit. With a lease or PPA, you’ll pay a fixed amount for each kWh of electricity generated by your system, which will be substantially lower than paying for electricity from the grid. With no upfront investment and savings guaranteed during the entirety of your leasing agreement, this is an excellent way to go solar for $0 down.
Our customers rely on us to provide them with quality installations that will stand the test of time. Our panels have been designated as Tier 1 panels, indicating that they are among the most reliable and effective panels available on the market today. We also offer a 25-year warranty on our panels and system components, providing you peace of mind about your investment.
We have extensive experience installing solar panel systems on homes in New York, which allows us to accurately plan a system that will offset all or most of your energy costs for the next 25 years. If you’re ready to get started, please call us today. We are happy to answer any questions you may have about planning and financing your system, as well as provide you with further information about the current rebates and incentives available to you.
1. U.S. Energy Information Administration (2012)