Solar Panels Cost 5.3k-16k in Steuben County, NY | August, 2024 (2024)

In New York, new solar energy systems for use on residential property are exempt from state sales/use tax. The exemption applies to solar PV, water heating, and HVAC systems, but not to pool heaters. (Commercial pool heaters may still be subject to tax incentives.) Additional information is available from local assessors and solar retailers.

A Clean Energy Fund is managed by New York's Public Service Commission. The law creating this fund consolidates the expired Renewable and Energy Efficiency Portfolio Standard budgets into a single entity. By 2030, 50% of the state's retail electricity should be generated from renewable sources. In the same year, the state should also reduce building energy consumption by 23% and overall carbon emissions by 40% from 2012 benchmarks. Initiatives funded through the CEF include rebate and incentive programs, large-scale private renewable energy facilities, education, and business support. Additional information is available from the PSC website.

Government buildings in New York City must meet certain green construction standards in line with the city and state's renewable energy goals. New construction or comprehensive remodeling/expansion projects must meet the requirements for LEED Silver certification and pursue formal accreditation from the US Green Building Council. Some privately-owned construction may be subject to the LEED requirement if it receives public funding equal to at least half of project costs. Usually, the only facilities exempt from the LEED requirement are schools and hospitals, as separate green building standards apply. Additional information is available from the city website.

In New York, new solar energy systems for use on residential property are exempt from state sales/use tax. The exemption applies to solar PV, water heating, and HVAC systems, but not to pool heaters. Cities and county governments may enact local sales/use tax exemptions adding to state incentives. In cities of more than 1 million people, these exemptions must be formally codified as a local ordinance. Additional information is available from local assessors and solar retailers.

New York established a mandatory Clean Energy Standard in 2016 to consolidate and replace the expiring Renewable and Energy Efficiency Portfolio Standards. The Renewable Energy substandard goals require 70% of the state's retail electricity to be sourced renewable by 2030. The state should phase out energy sources producing carbon emissions by 2040. The Zero-Emissions Standard and lower "carve-out" standards dictate minimum investment in specific zero-emission energy sources, including solar and offshore wind. Compliance with the standard is measured using both Renewable Energy Credits (RECs) and Zero-Emission Credits (ZECs) pegging a megawatt hour of electricity to a fluctuating dollar value. All operation renewable energy systems in the state will generate at least one type of credit, though utilities are expected to purchase a share of their REC/ZEC quotas from customers through tariff programs.

The New York Green Bank is a public financial institution overseen by NYSERDA. The Bank specializes in forming public-private partnerships to streamline financial considerations in green energy investment. Currently, the Bank manages hundreds of millions of dollars used for renewable portfolio standard compliance, incentive programs, energy assistance, and project financing. It may legally involve itself with any renewable energy project and is formally charged with reviewing proposals for special financing agreements on the corporate and utility levels.

PSEG, the private electrical utility on Long Island, has created its own net metering policies in addition to state standards. The utility has committed to net metering agreements for up to 150 MW of wind, solar, biomass, and CHP energy. Net metering customers will be compensated through bill credits on the net excess generation (NEG) they export to the grid, as measured by a bidirectional meter. Should generation exceed consumption for a given month, credits will roll ahead to subsequent billing cycles. "Virtual net metering" arrangements are available for agricultural renewable energy systems and microgrid customers. As a condition of compensation, PSEG takes ownership of the renewable energy credits generated through the use of a renewable energy device under net metering. Additional information is available through the PSEG website.

In New York, municipal corporations may be eligible for property tax exemptions on buildings meeting certain green construction standards. Exemptions are at the local level, and cities/counties in New York may choose not to grant them whatsoever. Qualifying buildings should meet the requirements for LEED Silver certification at a minimum, and they should pursue formal certification from the US Green Building Council. Exemptions for a LEED Silver building last for three years, after which time the incentive turns into a tax credit which decreases by 20% annually. Longer exemption periods of up to six years are available for buildings with LEED Gold or Platinum certification. Interested taxpayers should consult with their local assessor for details.

Through the Sun Incentive Program operated by NYSERDA, homeowners installing a new solar energy system up to 25 kW in capacity may receive rebates. Homeowners must be a customer of a participating utility and use a participating solar contractor to qualify. Rebate amounts will build on a base rate per watt. Additional incentives are available for low-income customers or larger systems. NYSERDA may contract with microgrids in low-income neighborhoods to proportionally allot incentives to each subscriber. Additional information is available from the NYSERDA website.

Until its replacement by PSEG Long Island, the Long Island Power Authority held itself to a local renewable portfolio standard exceeding state standards. By 2013, at least 25% of the island's retail electricity was to be generated using renewable technology. Solar, wind, and other renewable energy projects used to comply with the local standard could not be used for state RPS compliance. Though this policy promoted renewable investment above and beyond state minimum quotas, it was actually established for legal reasons to ensure renewable energy credits were not counted twice. PSEG Long Island, as LIPA's successor, did not establish a new renewable energy goal to keep with increasing state standards.

In New York, local governments may choose to enact real property tax exemptions on farm renewable energy systems. Localities may choose to opt out of the exemption program; in most cases, it will be offered by default, in contrast with other local-option tax incentives. Wind turbines, solar PV, water heating, HVAC, and some pool heating systems are eligible. Agricultural biomass, manure, or waste energy systems may also be eligible for exemptions. Exemptions are valid at the local and school tax levels, and taxpayers may still be liable for special assessments their local government places on the property.

In New York, new solar energy systems for use on residential property are exempt from state sales/use tax. The exemption applies to solar PV, water heating, and HVAC systems, but not to pool heaters. Cities and county governments may enact local sales/use tax exemptions adding to state incentives. In cities of more than 1 million people, these exemptions must be formally codified as a local ordinance. Additional information is available from local assessors and solar retailers.

The New York state government offers a statewide property-assessed clean energy (PACE) financing program for multi-family residential and commercial properties making energy efficiency improvements. Single-family homes, duplexes, and townhomes are not eligible for financing due to FHFA regulations. The available principal will depend on property type and the projects being financed. The applicant must request an energy audit from a PACE representative as a part of the process: only projects the auditor suggests are eligible. Loan repayment will be made through a property tax lien senior to mortgages. Should the owner sell or transfer their property, the new owner will be responsible for repayments. Additional information is available from the New York Energy Improvement Corporation website.

Since 1997, public/private utilities and cooperatives have offered net metering or other distributed generation tariffs to as many renewable energy customers as allowable by state quotas. The state recently replaced net metering with a "value of distributed energy resources" (VDER) tariff. VDER operates as an "inflow-outflow" program. Customers are technically billed for all electricity they generate, including excess generation (EG) sent to the grid. Rather than paying for all generated energy, however, they will only owe the cost of their "nettable energy" in that cycle. Nettable energy is equal to total power generated at the standard billed cost minus EG at a different "credit rate." As with net metering, should generation exceed consumption, remaining credits will be applied to subsequent cycles. VDER credit rates are fixed for the length of the contract. "Community Metering" provisions exist to compensate microgrid subscribers in proportion.

Real property tax exemptions may apply to small residential renewable energy equipment in New York, including CHP units, hydroelectric systems, fuel cells, and devices used to store energy. Exemptions apply at the local and state level, with the exception of special assessments that a property may incur. Multi-family property may be eligible for the exemptions if they are under five units in size. Additional information is available from the NY Department of Taxation and Finance.

Energy efficiency project financing through NYSERDA lending partners is available to single-family homeowners and multifamily properties up to four units. Applicants are limited to borrowers from Con Edison, Central Hudson, PSEG-Long Island, the National Grid, NYS E&G, Rochester G&E, or Orange Rockland. Loans with a principal of $1,500 - $25,000 are available at 3.49% - 3.99% APR over up to 15 years. Monthly payments are made through energy bills and will be based on estimated cost savings. Loans may fund projects approved by NYSERDA energy auditors and undertaken by participating contractors. The initial audit is available at no cost to the applicant. Additional information is available from the NYSERDA website.

In 1999, New York became one of the first states to standardize distributed generation and grid interconnection practices. The state Standard Interconnection Requirements cover any renewable energy system rated for under five megawatts. Systems should meet certain IEEE and UL safety and performance standards. Should the standards be met, the system will be eligible for expedited permit review procedures.

Special building permit processes and fees are available for new renewable energy systems or "energy conservation devices" in Riverhead. Eligible equipment includes solar PV arrays as well as any other device which qualifies for federal, state, or county tax incentives. Should a project meet certain safety and performance specifications, it will be considered under a 14-day expedited review and cost a $50 fee. Additional information is available from the Riverhead municipal website.

All customers of New York's six private electrical utilities are assessed system benefits surcharges to support a variety of NYSERDA energy initiatives. Currently, surcharge funding supports energy efficiency improvements, renewable energy investments, and energy access/assistance for low-income or disadvantaged communities. The fund's administrators annual reports to the state assembly detailing funding goals, actual revenue earned from surcharges, and initiatives supported by surcharges. These reports are publicly available on the NYSERDA website.