Solar Tax Credits And Incentives

An in depth look at New York State Solar Tax Credit, The Federal Tax Credit, and NYSERDA Rebates.

What Is A Residential Solar Tax Credit?

The Residential Solar Tax Credit is a tax incentive solar customers can subtract from the taxes they owe to the state and federal government the year they purchase their solar system.

What Incentives Are There For Going Solar In New York State?

Federal Tax Credit:

The Investment Tax Credit (ITC) also commonly referred to as the federal tax credit provides a 26% tax credit for systems installed between 2020-2022. Solar systems installed in 2023 will be eligible for a 22% tax credit, any system installed in 2024 and after will have no tax credit unless congress renews it.

New York State Energy Research and Development Authority (NYSERDA) Incentive:

This incentives differs from other incentives in that in works in a block grant format. The incentive rewards early movers in installing solar by rewarding them with more money by the wattage of their solar system.

Bonus Tip: Once one block of the grant is fully used, the incentive drops a grade and rewards less money per watt. Move fast to take full advantage of this incentive!

State Tax Credit:

The state tax credit (which can be claimed in addition to the federal tax credit) provides an additional 25% tax credit for New York state taxes. New York state does however cap this incentive at $5,000.

How Do Solar Tax Credits Work With Tax Liability?

For both the Federal and State solar tax credits, if an individuals tax credit exceeds that of their tax liability then the tax credits are eligible to be carried over for up to 5 years.

Are Solar Battery’s Eligible For Incentives?

Solar battery’s can be eligible for the ITC under certain conditions. The same 26% tax credit can be applied to a storage system provided it is exclusively charged from a renewable source of energy. This means a storage system paired with a solar system is eligible for the tax credit!

What Is The Affordable Solar Program?

The Affordable Solar Program gives the opportunity for underserved households and communities qualify for solar. To calculate how to qualify for this program, NYSERDA measures gross household income combined with the total household occupancy.