Incentives for Installing Solar Electric Systems in New York

New York State recognizes the many benefits of Solar Electric Systems and has implemented several incentive programs to reduce the barriers to installing these systems. This includes the Net Metering Law, newly revised Tax Credits and NYSERDA Rebates. Together, their incentives can total 50%-70% of the system price.

Net Metering
The "Solar Choice Act of 1997" provides for net metering of residential photovoltaic systems. This law was a crucial starting point, giving residential electric customers the right to "sell back" excess solar electricity they produce.

Kernel of the Law: Residential customers with 10 kW or smaller solar electric systems are now entitled to TURN THEIR ELECTRIC METERS BACKWARDS when their solar systems are generating more electricity than is being consumed. The customers pay for only the NET amount of electricity they buy from the utility. That is electricity used minus electricity generated equals electricity you are billed for. You end up being PAID when you generate excess electricity. The utility company purchases your excess electricity at the same price that you buy it from them.

Income/Tax Credits
New York State also provides an income tax credit for residential, net-metered photovoltaic systems. This amounts to roughly $1,500 per kilowatt of installed solar capacity, up to a maximum of $5,000.

A Federal Tax Credit of $2,000 has also been introduced, effective January 1, 2006, for residential photovoltaic systems. Commercial solar electric installations are now entitled to a Federal Tax Credit of 30% also effective in 2006.

Incentive Rebates
There are currently incentive rebates ($4,000 to $4,500 per kilowatt up to $200,000) available for customers of NYSEG, NiMo,Con Ed, Orange and Rockland and Central Hudson. These rebates are payable immediately upon system power up from the New York State Energy Research and Development Authority, (NYSERDA) to the system installer (Hudson Valley Clean Energy).