2022 was a game-changing year for the solar industry, bringing more incentives nationwide for Americans to go solar. In New York, Governor Hochul announced in her State of the State a plan to power an additional 700,000 homes in the state with solar by 2030, making New York a trailblazer in the clean energy movement. The state also provides incentives in addition to the federal government, providing enticing financial benefits to homeowners. Luckily, these changes will last long into 2023!
The Current Landscape
Arguably, the most progressive legislation in the solar industry to date was the passing of the Inflation Reduction Act in August 2022, which extended the federal ITC to 30% through the end of 2034. This means homeowners across America who switch to solar energy are eligible to receive 30% of the total cost of their project as a credit on their tax return.
30% is a pretty generous incentive, considering that’s before state incentives come into play. New York boasts some of the best state incentives in the country. Through the state government, homeowners with solar energy can receive an additional 25% tax credit on their annual return, but there is a cap at $5,000.
Lastly, if that’s not enough, New York also has the NYSERDA block grants. Through these grants, NYSERDA awards a set amount of money per watt of energy as a rebate. For example, at the start of 2023, NYSERDA Block #11 provides $0.30 per watt. When Block #11 runs out, a new block will open, but we do not know what the rate will be until the block opens. Thus, we always recommend starting a solar project as soon as possible to avoid potentially losing money through a decreased rebate when the new block opens.
So, what does all this mean? First, there has never been a better time financially to make the switch. New York State residents can receive about 50% of the total cost of their solar project back as a tax credit. Plus, if an individual switches to solar energy and the tax credit from their project exceeds their tax liability, tax credits are eligible to be carried over for up to 5 years. No other investment gives you literally half of your money back on your tax return!
With inflation being very high and a recession looming in the 2023 economic forecast, get ahead of the game and start the solar process today. You’ll be doing good by the planet, while also alleviating the burden of sky-high utility bills!