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New York Photovoltaic Incentives & Rebates

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  • 1. PV Incentives PON 1050 Solar Electric Incentive Program The Public Service Commission (PSC) issued an Order, effective October 28, 2008, to reallocate funding to the Customer-Sited Tier of the Renewable Portfolio Standard. As part of that Order, the PSC authorized $20.6 million for the solar photovoltaic (PV) category. More details regarding this can be found in the PSC's full Order. WHAT IS THE SOLAR ELECTRIC INCENTIVE PROGRAM? It’s an innovative program from the New York State Energy Research and Development Authority (NYSERDA) that provides cash incentives for the installation of new Solar Electric or Photovoltaic (PV) systems by Eligible Installers. Funding of approximately $13.8 million in incentives, through 2009, for the Solar Electric Incentive Program (“Program”) has been allocated by the New York State Renewable Portfolio Standard. Additional funding may be made available based on customer demand and program success. Incentives are granted on a first-come, first-served basis. Applications will be accepted through December 31, 2009, or until funds are fully committed, whichever comes first. HOW DOES THE PROGRAM WORK? The cash incentives are available for qualified systems and customers, through applications submitted to the Program by an “Eligible Installer.” Eligible Installers are those who have demonstrated technical competence in the PV field and who have signed written agreements with NYSERDA to abide by certain Program terms and conditions. The cash incentives are paid directly to the Eligible Installer, but must be passed on in full to the customers. A list of all Eligible Installers is available at: • http://www.powernaturally.org/includes/PVInstallers.aspx?t=pv Eligible Installers are responsible for preparing and submitting all necessary incentive paperwork to NYSERDA. In general, incentives for a typical residential or commercial system cover approximately 40-45% of the installed cost of a PV System. For commercial systems, incentives may be combined with loan assistance from NYSERDA through the NY Energy $mart Loan FundSM to the extent available. Customers may also be eligible for New York State and federal tax credits. PV installers, electricians, builders, and contractors with training and experience in designing and installing PV Systems are encouraged to submit applications to become Eligible Installers. Installers can apply for Eligible Installer status at any time while the program is open. Once approved, Eligible Installers can apply for financial incentives for PV Systems meeting the requirements of this Program.
  • 2. GENERAL PROGRAM RULES - INCENTIVES The following rules apply to the Program and the payment of incentives. Please read them carefully, as they affect the eligibility of the PV System for cash incentives from NYSERDA: • Incentives are only available for PV Systems installed by an Eligible Installer. • Incentives are paid directly to Eligible Installers, but must be passed on in the full amount to the customer. • Incentives will not be provided directly to customers purchasing or installing PV Systems. • Incentives are available for systems installed for qualified customers. Qualified customers are those who pay the Renewable Portfolio Standard (RPS)/Systems Benefits Charge (SBC) as part of their electricity bill. • Incentives are only available for new equipment and PV Systems that have not been installed (partially or completely) prior to NYSERDA approval of an incentive application submitted in accordance with the terms and conditions of this Program. • Incentives are capped based on a PV System size that produces no greater than 110% of the demonstrated annual electric use (i.e. past electric bills) for the site. All potential system output losses (kilowatt hours or kWh generated after all equipment losses are applied) associated with shading, system orientation, tilt angle, etc., must be analyzed and detailed for each PV System by the Eligible Installers. If your system is shaded by trees, faces east or west, or is installed on a flat roof, the kWh output of your PV System will be less than ideal. All impacts on system output must be quantified and are considered during the review of applications submitted by the Eligible Installer. Incentives are reduced in proportion to output losses when losses from factors such as shading and orientation exceed 20% for a traditional PV System and 40% for building integrated PV Systems. NYSERDA’s Solar Electric Programs are designed to help develop and implement a sustainable market for grid-connected solar electric or photovoltaic (PV) energy for all applications. Whether you are interested in a solar electric system for your home, business, school, or farm, NYSERDA has information and tools to help you make an informed decision about investing in a solar electric system. For example, the Clean Power Estimator is a great tool for evaluating the costs and benefits of a PV system. Once you are ready to purchase a system, NYSERDA has financial incentives available to qualified New York residents to help reduce installed system costs by nearly 50% if you work with an eligible installer, NYSERDA also has programs to help develop and implement technical training programs for system installers, utility and local inspectors, and others to insure that your system is installed and operates reliably for many years.
  • 3. Grid Connected Solar Electric or Photovoltaic (PV) Systems NYSERDA Photovoltaic (PV) programs are designed to develop and strengthen New York's supply and service infrastructure, reduce barriers to installing PV, and build market demand for PV. NYSERDA administers the New York Energy $martSM program, designed to support certain public benefit programs during the transition to a more competitive electricity market. Grid-connected PV power offers consumers both economic and environmental advantages. Where utility power is available, consumers can use a grid-connected PV system to supply a portion of the power they need while using utility-generated power at night and on very cloudy days. When the PV system supplies power to the grid as well as to a specific building or piece of equipment, the utility becomes a storage device or battery for PV-generated power. Hundreds of homeowners and businesses in New York have grid-connected PV systems. System owners like the fact that the system reduces the amount of electricity they purchase from the utility each month. PV is also a clean and pollution-free energy source that can reduce New York’s dependence on foreign sources of oil. While residential, grid-connected PV systems (10 kilowatts or less) can provide most of a home’s electric needs, they may also generate more electricity than needed. The electricity generated by the PV system can be used on site or fed through a meter back into the utility grid. For example, if a PV system is generating at near its rated output and a system owner is on vacation or not home during the day, a system will typically be producing more electricity than is needed for a given time period and that excess can be “sold” back to the utility. At the end of the month, a credit for electricity sold is deducted from charges for electricity purchased. Currently, New York utilities are only required to buy back excess electricity from residential PV systems that are 10 kilowatts or less. When a home or business requires more electricity than the grid-connected PV array is generating (for example, in the evening), the need is automatically met by utility power. A grid-connected PV system is connected to the utility system or grid through an interconnection agreement with your utility company. The interconnection agreement sets the terms and conditions under which a PV system can be safely connected to the grid and outlines metering arrangements (net metering) for your PV system. Only grid connected PV systems are eligible for financial incentives and assistance under NYSERDA’s for PV incentive program.
  • 4. That is because NYSERDA’s funding for the PV incentive program comes from a charge on electricity sales assessed to people on the grid or utility system through the System Benefit Charge. As a result, that funding can only be used for grid-connected PV systems. Grid-Connected PV System Costs As of January 2005, just over 190 incentive reservations were approved under NYSERDA's small PV incentive program. The small PV incentive program is a first- come, first-served incentive program that provides incentives to customers through eligible installers for utility interconnected (grid-tied) systems 50 kilowatts or less. While the technology being installed is fairly standard and each system must meet all NYSERDA program requirements, each individual system has to accommodate any unique design or installation needs to meet customer demands, site conditions, application requirements (roof or ground mounted), etc. The chart below provides a summary of system sizes and costs (averages and ranges) for systems installed under NYSERDA's PV incentive program to date. These figures should be used as a guide. An eligible installer will be able to provide you with a specific cost estimate based on your needs and requirements. Be sure to get at least three estimates from three installers. The Clean Power Estimator is also a useful tool in getting more information about typical system costs and benefits. PV Systems for Homes* PV Systems for Businesses 4.5 kilowatts (kW) or 4,500 Average Size 9.7 kW or 9,700 watts watts Average Cost $8,450 per kW or $7,990 per kW or Before NYSERDA $8.45 per watt $7.99 per watt Incentive $6,600 - $12,604 per kW or $6,373 - $9,674 per kW or Cost Ranges $6.60 - $12.60 per watt $6.37 - $9.67 per watt *Includes ENERGY STAR homes Funding Assistance NYSERDA's solar electric Incentive Program and on-site wind Incentive Program provide funding on a first-come, first-served basis. Customers must work through Eligible PV Installers and Eligible Wind Installers who are responsible for submitting all paperwork to NYSERDA and meeting all program requirements. Customers participating in the on-site wind incentive program must use a Qualified Wind Generator.
  • 5. NYSERDA also provides funding for many types of projects under a variety of programs. Most of NYSERDA's programs provide funding through competitive solicitations or Program Opportunity Notices (PONs). PONs include all the instructions, requirements, and forms necessary to obtain funding under a program or initiative. All PONs are available under Current or Upcoming. Look here for more opportunities for solar, wind, other renewable, and energy efficiency funding. PON 1050 Solar Electric Incentive Program The Public Service Commission (PSC) issued an Order, effective October 28, 2008, to reallocate funding to the Customer-Sited Tier of the Renewable Portfolio Standard. As part of that Order, the PSC authorized $20.6 million for the solar photovoltaic (PV) category. More details regarding this can be found in the PSC's full Order. WHAT IS THE SOLAR ELECTRIC INCENTIVE PROGRAM? It’s an innovative program from the New York State Energy Research and Development Authority (NYSERDA) that provides cash incentives for the installation of new Solar Electric or Photovoltaic (PV) systems by Eligible Installers. Funding of approximately $13.8 million in incentives, through 2009, for the Solar Electric Incentive Program (“Program”) has been allocated by the New York State Renewable Portfolio Standard. Additional funding may be made available based on customer demand and program success. Incentives are granted on a first-come, first-served basis. Applications will be accepted through December 31, 2009, or until funds are fully committed, whichever comes first. HOW DOES THE PROGRAM WORK? The cash incentives are available for qualified systems and customers, through applications submitted to the Program by an “Eligible Installer.” Eligible Installers are those who have demonstrated technical competence in the PV field and who have signed written agreements with NYSERDA to abide by certain Program terms and conditions. The cash incentives are paid directly to the Eligible Installer, but must be passed on in full to the customers. A list of all Eligible Installers is available at: • http://www.powernaturally.org/includes/PVInstallers.aspx?t=pv Eligible Installers are responsible for preparing and submitting all necessary incentive paperwork to NYSERDA. In general, incentives for a typical residential or commercial system cover approximately 40-45% of the installed cost of a PV System. For commercial systems, incentives may be combined with loan assistance from NYSERDA through the NY Energy $mart Loan FundSM to the extent available. Customers may also be eligible for New York State and federal tax credits.
  • 6. GENERAL PROGRAM RULES - INCENTIVES The following rules apply to the Program and the payment of incentives. Please read them carefully, as they affect the eligibility of the PV System for cash incentives from NYSERDA: • Incentives are only available for PV Systems installed by an Eligible Installer. • Incentives are paid directly to Eligible Installers, but must be passed on in the full amount to the customer. • Incentives will not be provided directly to customers purchasing or installing PV Systems. • Incentives are available for systems installed for qualified customers. Qualified customers are those who pay the Renewable Portfolio Standard (RPS)/Systems Benefits Charge (SBC) as part of their electricity bill. • Incentives are only available for new equipment and PV Systems that have not been installed (partially or completely) prior to NYSERDA approval of an incentive application submitted in accordance with the terms and conditions of this Program. • Incentives are capped based on a PV System size that produces no greater than 110% of the demonstrated annual electric use (i.e. past electric bills) for the site. All potential system output losses (kilowatt hours or kWh generated after all equipment losses are applied) associated with shading, system orientation, tilt angle, etc., must be analyzed and detailed for each PV System by the Eligible Installers. If your system is shaded by trees, faces east or west, or is installed on a flat roof, the kWh output of your PV System will be less than ideal. All impacts on system output must be quantified and are considered during the review of applications submitted by the Eligible Installer. Incentives are reduced in proportion to output losses when losses from factors such as shading and orientation exceed 20% for a traditional PV System and 40% for building integrated PV Systems. Disclaimer for Eligible PV Installers NYSERDA's list of Eligible PV installers is based solely upon information provided by Eligible Installers participating in NYSERDA PV incentive program (PON 1050). NYSERDA and the State of New York make no representations as to the accuracy or completeness of the information. Neither NYSERDA nor the State of New York: (1) endorse any Eligible Installer listed; or (2) guaranty, warranty, or in any way represent or assume liability for any work proposed or carried out by an Eligible Installer. Additionally, NYSERDA is not responsible for assuring that the design, engineering and construction of the project or installation of any PV system is proper or complies with any particular laws (including patent laws), regulations, codes, or industry standards. NYSERDA does not make any representations of any kind regarding the results to be achieved by the PV systems or the adequacy or safety of such measures.
  • 7. Important Program Features Please take a few minutes to read the program summary presented below before contacting an eligible installer about installing a photovoltaic (PV) or solar-electric system under this program. It is important that consumers understand how the program works and some of the key features of the program. Additionally, some important program features that are worth noting include: • Eligible Installers are only authorized to apply for incentives for eligible PV systems for specific customers. Eligible Installers are authorized to proceed with installations on a project by project basis. • Incentives will not be approved for systems that have been partially or completely installed before NYSERDA has approved an incentive application. • NYSERDA must review and approve every application for a customer's PV system submitted by an eligible installer. Although every effort is made to review applications as quickly as possible, this process may take up to 30 days, depending on the completeness of the application submitted as it relates to the program terms and conditions. System installations under this program can not begin until NYSERDA has informed the installer and customer that the system has been approved, in writing. Also note that even though you may sign an agreement with an eligible installer on a certain date, the approximate time period of 30 days for review and approval begins when NYSERDA receives the incentive application from the Eligible Installer. NYSERDA may reject an application for incentives if it is received by NYSERDA more than 45 days from the date of the customers execution of the customer purchase agreement. It is important to select a PV installer like you would any other home improvement contractor. Call at least three eligible installers for price quotes on comparable systems, ask for customer references and check their references, ask about their insurance coverage, and be sure that once you select an eligible installer you are familiar with the program features summarized below so that you better understand the program steps and timing considerations. What Does It Mean to be Certified? Certification for Solar PV Installers is a voluntary process offered by the North American Board of Certified Energy Practitioners (NABCEP) to individuals who have met specific qualifications.
  • 8. To become NABCEP certified, the installer - Must be at least 18 years of age - Meet prerequisites of related experience and/or education - Sign a code of ethics and standards of practice - Pass a written exam An installer is certified for three years. To maintain this professional designation, certificants must meet continuing education requirements and install a specified number of systems per year. The NABCEP certification program has been developed and designed carefully following professional credentialing guidelines. Standards, developed by experts in the field, have been set and the eligibility requirements to become certified are based on extensive input from installers and members of the solar industry. Doing Business with NYSERDA NYSERDA contracts with a variety of firms, individuals, institutions, and organizations for engineering, scientific, technical, and other services for its R&D and deployment programs. Our technical staff, comprising engineers, economists, biologists, physicists, mathematicians, and other trained specialists, work closely with proposers to develop and manage NYSERDA projects. NYSERDA's Director of Contract Management oversees all contract activities. Research Priorities Project proposals should reflect the priorities in NYSERDA's multiyear research program plan, Leading the Way in Energy Innovation: A Three-Year Startegic Outlook - 2007-2010 [2.9MB .pdf]. To obtain a copy of this plan, contact NYSERDA at (518) 862-1090, ext. 3272; fax (518) 862-1091.
  • 9. New York Incentives/Policies for Renewables & Efficiency Solar and Fuel Cell Tax Credit Last DSIRE Review: 05/27/2009 Incentive Type: Personal Tax Credit State: New York Eligible Solar Water Heat, Solar Space Heat, Photovoltaics, Fuel Cells Renewable/Other Technologies: Applicable Sectors: Residential, Multi-Family Residential Amount: 25% for solar-electric (PV) and solar-thermal systems; 20% for fuel cells Maximum Incentive: $5,000 for solar-energy systems; $1,500 for fuel cells Carryover Provisions: Excess credit may be carried forward five years Eligible System Size: 10 kW maximum for solar-electric systems*, except 50 kW for solar systems owned by condominium or cooperative housing associations; 25 kW maximum for fuel cells Equipment/Installation Systems must be new and in compliance with all applicable Requirements: performance and safety standards Authority 1: NY CLS Tax, Article 22 § 606 (g-1) et seq. Date Enacted: 08/02/1997 (solar electric) Date Effective: 01/01/1998 (solar electric); 01/01/2003 (fuel cells); 01/01/2006 (solar thermal)
  • 10. Enacted in August 1997, this personal income tax credit originally applied to expenditures on solar-electric (PV) equipment used on residential property. The credit, equal to 25% percent of the cost of equipment and installation, was expanded in August 2005 to include solar-thermal equipment. The solar-thermal provisions apply to taxable years beginning on and after January 1, 2006. The credit is capped at $3,750 for solar-energy systems placed in service before September 1, 2006, and capped at $5,000 for solar-energy systems placed in service on or after September 1, 2006. Any amount of credit that exceeds a taxpayer's liability in a given tax year may be carried forward for the five following taxable years. Any amount of the system cost provided by a grant from any source is not eligible for this credit. Solar-energy equipment is defined as "an arrangement or combination of components utilizing solar radiation, which, when installed in a residence, produces energy designed to provide heating, cooling, hot water or electricity." The credit may not be used for pool heating or other recreational applications. Systems must comply with the 10 kW capacity limit on residential, net-metered solar-energy systems*. In 2007, legislation was passed increasing the capacity limit to 50 kW for condominiums and cooperative housing associations. In addition, members of condominium management associations and tenant stockholders of cooperative housing associations are now allowed to claim a proportionate share of the total system expense towards the tax credit. These changes take effect beginning in the 2007 tax year, but as with other portions of the tax credit, they do not have an expiration date. Fuel cells installed at a principal residence are eligible for a 20% tax credit, with a maximum credit of $1,500. To qualify, fuel cells must provide a maximum rated baseload capacity of 25 kW and must utilize proton exchange membrane (PEM) technology. *The language of the tax credit generally requires that PV systems conform to the state's net metering law, thereby limiting system size to 10 kW. In August 2008, the state net metering law was expanded by S.B. 7171 to permit net metering for residential PV systems up to 25 KW. It is unclear at this point whether the state intends for the new net metering limits to apply to the tax credit described above. The 2008 Solar and Fuel Cell Tax Credit Form IT-255 does not specifically address this issue. Contact: Taxpayer Assistance - Personal Income Tax Information Center New York State Department of Taxation and Finance W.A. Harriman Campus Albany, NY 12227 Phone: (518) 457-5181 Phone 2: (800) 225-5829 Web Site: http://www.tax.state.ny.us
  • 11. New York Incentives/Policies for Renewables & Efficiency New York City - Property Tax Abatement for Photovoltaic (PV) Equipment Expenditures Last DSIRE Review: 05/04/2009 Incentive Type: Property Tax Assessment State: New York Eligible Photovoltaics Renewable/Other Technologies: Applicable Sectors: Commercial, Industrial, Residential, Nonprofit, Schools, Multi- Family Residential, Institutional Amount: Installed from August 5, 2008 to December 31, 2010: 8.75% of system expenditures per year for 4 years (total of 35%); Installed from January 1, 2011 to December 31, 2012: 5% of system expenditures per year for 4 years (total of 20%) Maximum Incentive: $62,500 annually or the amount of real property taxes owed during a year Terms: Systems must be located within a city with a population of at least 1 million (i.e., New York City) Web Site: http://www.nyc.gov/ html/dob/html/guides/green_roof_faq.shtml Authority 1: NY CLS RPTL § 499-aaaa et seq. Date Enacted: 08/05/2008 Date Effective: 08/05/2008 Expiration Date: 12/31/2012 Authority 2: Rules of the City of New York § 105-02 Date Effective: 03/12/2009
  • 12. Summary: In August 2008 the State of New York enacted legislation allowing a property tax abatement for photovoltaic (PV) system expenditures made on buildings located in cities with a population of 1 million or more people. This essentially limits the abatement to systems installed within New York City. Eligible buildings include all real property except utility real property. The abatement allows building owners to deduct from their total real property taxes* a portion of the expenditures associated with installing a PV system on an eligible building. Systems placed in service between August 5, 2008 (the effective date) and December 31, 2010 are eligible for an abatement of 8.75% of eligible expenditures annually for four years. Systems placed in service between January 1, 2011 and December 31, 2012 are eligible for an abatement of 5.0% of eligible expenditures annually for 4 years. Thus the total property tax benefit can amount to either 35% or 20% of the installed system cost depending on when it is built. The maximum abatement during a year is $62,500 or the amount of real property taxes owed during the year. Unused balances may not be carried forward to subsequent years. Eligible expenditures include reasonable expenditures for materials and labor associated with planning, designing, and installing the system. Expenditures incurred using a federal, state, or local grant are not eligible, nor are interest or finance charges. However, the amount of eligible expenditures is not reduced by federal, state or local tax credits, tax abatements, tax exemptions or tax rebates. The abatement program is administered by the Department of Finance in cooperation with the Department of Buildings. Applications for the abatement must be filed by March 15 in order to be eligible for a tax credit during the year the application is submitted. Applications submitted after this deadline can be applied to taxes owed for the following fiscal year. It is important to note that claiming the abatement does not effect whether a building owner can claim New York's real property tax exemption on the value added by solar, wind, and farm-based biogas energy systems. *This incentive is similar to an investment tax credit for renewable energy systems, which are frequently applied to personal or corporate income taxes. It is unique in that the tax benefits are recouped through reduced property taxes on the host building instead of through reduced income taxes. Contact: General Information - Solar & Green Roof Tax Abatements New York City Department of Buildings New York , NY 10007 E-Mail: greenroofandsolar@buildings.nyc.gov Web Site: http://www.nyc.gov/html/dob/html/home/home.shtml
  • 13. New York Incentives/Policies for Renewables & Efficiency Local Option - Solar, Wind & Biomass Energy Systems Exemption Last DSIRE Review: 11/11/2009 Incentive Type: Property Tax Exemption State: New York Eligible Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Solar Renewable/Other Thermal Electric, Solar Thermal Process Heat, Photovoltaics, Wind, Technologies: Biomass, Solar Pool Heating, Daylighting, Anaerobic Digestion Applicable Sectors: Commercial, Industrial, Residential, Agricultural Amount: 100% of the assessed value attributable to the system Terms: 15-year exemption Web Site: http://www.orps.state.ny.us/ assessor/manuals/vol4/part1/section4.01/sec487.htm Authority 1: NY CLS Real Property Tax, Article 4 § 487 Date Enacted: 1977; amended 1990, 2002, 2006 Date Effective: Before 7/1/88 or between 1/1/91 & 12/31/2010 Expiration Date: 12/31/2010 Authority 2: Exemption Handbook Date Enacted: 11/06/2009
  • 14. Summary: Section 487 of the New York State Real Property Tax Law provides a 15-year real property tax exemption for solar and wind energy systems constructed in New York State. As currently effective, the law is a local option exemption, meaning that local governments are permitted decide whether or not to allow it. The exemption was mandatory prior to a 1990 reenactment in which the local option clause was added. The exemption is valid unless a government opts out of the exemption, as opposed to the more common practice of requiring governments to "opt-in" in order to offer an exemption. In September 2002, the property tax exemption was expanded (S.B 6592) to include farm-waste energy systems, defined as systems and related equipment that generate electric energy from biogas produced by the anaerobic digestion of agricultural waste -- such as livestock manure, farming waste. The maximum rated system capacity for eligible farm-waste energy systems is 400 kilowatts (kW) and systems must be connected to the electric grid and operated in accordance with the state's net metering law (Public Service Law 66-j) in order to qualify. Senate Bill 5966A, enacted in July 2006, extended the previous January 1, 2006 expiration date until January 1, 2011. The exemption applies to systems that are (a) existing or constructed prior to July 1, 1988 (mandatory), or (b) constructed subsequent to January 1, 1991, and prior to January 1, 2011 (local option). The law intends to encourage the installation of solar, wind and farm-waste energy equipment systems and to ensure property owners that their real property taxes will not increase as a result of the installation of these systems. The amount of the exemption is equal to the increase in assessed value attributable to the solar, wind or farm-waste energy system. The definition of solar includes passive solar heating systems such as mass wall and direct gain systems. In the case of solar pool heating, solar energy collection, control, and distribution equipment is eligible; however, the pool itself does not qualify as a storage medium or otherwise. The exemption applies only to general municipal and school district taxes; it cannot be applied to special assessments or special ad valorem levies. With respect to systems constructed after January 1, 1991, and before January 1, 2011, each county, city, town, village and school district (except the city school districts of New York, Buffalo, Rochester, Syracuse and Yonkers) may choose whether to disallow the exemption. The option must be exercised by counties, cities, towns and villages through adoption of a local law and by school districts through adoption of a resolution. Click here for a list of local bodies that have opted not to offer the exemption. Alternately, a local government is permitted to require the property owner to enter into a contract for payments in lieu of taxes, not to exceed the amount payable without the exemption. Eligibility definitions and guidelines solar, wind-energy, and farm waste energy equipment have been issued by the New York State Research and Development Authority (NYSERDA) and are available above or on the program website.
  • 15. Contact: Public Information Officer Office of Real Property Services 16 Sheridan Avenue Albany, NY 12210-2714 Phone: (518) 474-2982 Phone 2: (518) 486-5446 Fax: (518) 474-9276 E-Mail: nysorps@orps.state.ny.us Web Site: http://www.orps.state.ny.us/ When you install a solar panel system, you are likely eligible to receive cash rebates from NYSERDA - your state, and energy tax credits from the U.S. Treasury IRS. Solar Power PV Incentive Program Rebate Type Amount Solar Power Installation $3,000 to $5,000 per kW installed, up to 10kW. Rebate Property Tax Exclusion 100% of system value for 15 years, except for New York City (see below) Sales Tax Exemption 100% of system sales tax State Tax Credit 25% of installed cost, up to $5,000 Incentive Type: New York State Solar Power Rebate Program Eligible Solar Power Photovoltaics Renewable Technologies: Applicable Commercial, Industrial, Residential, Nonprofit, Schools, Local Government, Sectors: State Government, Institutional, (Must be customer of investor-owned utility in
  • 16. NY) Incentive $3-$5/watt DC, varies by sector, installed capacity, and system type; Amount: Incentive may be reduced for potential production losses associated with shading, system orientation, tilt angle, and other factors Eligible System No maximum size restriction, but residential incentives are capped at 10 kW Size: and non-residential incentives are capped at 50 kW per site/meter. Systems may not exceed 110% of demonstrated energy demand. Equipment Systems must be new, UL-listed, and compliant with all applicable Requirements: performance and safety standards; minimum five-year warranty on all equipment and two-year warranty on battery back-up systems. Installation Installation must comply with all federal, state and local codes; must be grid- Requirements: connected and installed by a pre-approved contractor; must comply with New York's Standard Interconnection Requirements Program Budget: $38.8 million (2008-2009)* Ownership of NYSERDA for first 3 years of system operation, thereafter customer/generator Renewable Energy Credits: Funding Source: RPS surcharge Project Systems may be inspected by NYSERDA and/or other authorities having Certification jurisdiction; Performance monitoring and data reporting required for first 3 years of system operation Expiration Date: 09/30/2009 Website: http://www.powernaturally.org/Programs/Solar/incentives.asp The New York State Energy Research and Development Authority (NYSERDA) provides incentives of $3 to $5 per watt (DC) to eligible installers for the installation of approved, grid-connected photovoltaic (PV) systems. The maximum capacity supported by the program is 50 kW for non- residential systems and 10 kW for residential systems. Larger systems are permitted, but incentives are based on these capacity caps. Incentives are only available to eligible installers, and incentives must be passed on to customers. Once eligible, installers reserve incentives for approved systems, for specific customers, on a first-come, first-served basis for as long as funds are available. During 2008 and 2009, this program will provide $38.8 million in funding for PV systems.* The program continuously accepts applications from installers who seek to participate. The goal is to increase the network of eligible installers across the state, offering customers a choice of qualified or certified installers in their area. Installer eligibility will be determined and maintained based on factors such as acceptance of all
  • 17. program terms and conditions, training, installation experience, track record related to utility interconnections, overall performance, monitoring, customer references, customer satisfaction, and commitment to become certified through a national certification program. NYSERDA is providing accredited training opportunities for PV installers to the greatest extent possible. Training opportunities are posted at www.powernaturally.org. The program web site (listed above) provides a list of eligible installers. There are currently approximately 75 installers on the list. Program incentives effective January 29, 2008, based on direct-current (DC) module ratings at standard test conditions, are as follows: Residential Incentives R $4.00/W up to 5 kW $4.50/W for New York Energy Star homes up to 5 kW $4.50/W for all building integrated PV systems up to 5 $ For additional capacity above 5 kW, all residential incentives will be reduced by $1.00/watt and all residential incentives will be capped at 10 kW. New York Solar Sales Tax Exemption Incentive Type: Sales Tax Exemption Eligible Renewable Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Technologies: Photovoltaics Applicable Sectors: Residential Amount: 100% Exemption New York enacted legislation in July 2005 exempting the sale and installation of residential solar-energy systems from the state's sales and compensating use taxes. The exemption applies to solar-energy systems that utilize solar radiation to produce energy designed to provide heating, cooling, hot water and/or electricity. The exemption does not apply to solar pool heating or other recreational applications. There does not appear to be an expiration date* for this incentive. The law allows municipalities the option of granting the local exemption. If a city with a population of 1 million or more chooses to grant the local exemption, it must enact a specific resolution that appears in the state law. The New York Department of Taxation and Finance publishes a variety of sales tax reports detailing local tax rates and exemptions, including those for solar energy equipment. The solar sales tax list is updated several times per year. New York Local Property Tax Option - Solar, Wind & Biomass Energy Systems Exemption Incentive Property Tax Exemption
  • 18. Type: Eligible Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process Renewable Heat, Photovoltaics, Wind, Biomass, Daylighting, Anaerobic Digestion Technologies: Applicable Commercial, Industrial, Residential, Agricultural Sectors: Terms: 15-year exemption Website: http://www.orps.state.ny.us/assessor/manuals/vol4/part1/section4.01/sec487.htm Effective Before 7/1/88 or between 1/1/91 & 12/31/2010 Date: Expiration 12/31/2010 Date: Section 487 of the New York State Real Property Tax Law provides a 15-year real property tax exemption for solar and wind energy systems constructed in New York State. As currently effective, the law is a local option exemption, meaning that local governments are permitted decide whether or not to allow it. The exemption was mandatory prior to a 1990 reenactment in which the local option clause was added. The exemption is valid unless a government opts out of the exemption, as opposed to the more common practice of requiring governments to "opt-in" in order to offer an exemption. New York Solar and Fuel Cell Tax Credit Incentive Type: Personal Tax Credit Eligible Renewable Solar Water Heat, Solar Space Heat, Photovoltaics, Fuel Cells Technologies: Applicable Sectors: Residential, Multi-Family Residential 25% for solar-electric (PV) and solar-thermal systems; 20% for Amount: fuel cells Maximum Incentive: $5,000 for solar-energy systems; $1,500 for fuel cells Carryover Provisions: Excess credit may be carried forward five years Eligible System Size: 10 kW maximum for solar-electric systems*, except 50 kW for solar systems owned by condominium or cooperative housing associations; 25 kW maximum for fuel cells
  • 19. Equipment/Installation Systems must be new and in compliance with all applicable Requirements: performance and safety standards Enacted in August 1997, this personal income tax credit originally applied to expenditures on solar- electric (PV) equipment used on residential property. The credit, equal to 25% percent of the cost of equipment and installation, was expanded in August 2005 to include solar-thermal equipment. The solar-thermal provisions apply to taxable years beginning on and after January 1, 2006. The credit is capped at $3,750 for solar-energy systems placed in service before September 1, 2006, and capped at $5,000 for solar-energy systems placed in service on or after September 1, 2006. Any amount of credit that exceeds a taxpayer's liability in a given tax year may be carried forward for the five following taxable years. Any amount of the system cost provided by a grant from any source is not eligible for this credit. Solar-energy equipment is defined as "an arrangement or combination of components utilizing solar radiation, which, when installed in a residence, produces energy designed to provide heating, cooling, hot water or electricity." The credit may not be used for pool heating or other recreational applications. Systems must comply with the 10 kW capacity limit on residential, net-metered solar-energy systems*. In 2007, legislation was passed increasing the capacity limit to 50 kW for condominiums and cooperative housing associations. In addition, members of condominium management associations and tenant stockholders of cooperative housing associations are now allowed to claim a proportionate share of the total system expense towards the tax credit. These changes are valid for the Jan. 1, 2007 tax year. Fuel cells installed at a principal residence are eligible for a 20% tax credit, with a maximum credit of $1,500. To qualify, fuel cells must provide a maximum rated baseload capacity of 25 kW and must utilize proton exchange membrane (PEM) technology. New York City - Property Tax Abatement for Photovoltaic (PV) Equipment Expenditures Incentive Type: Property Tax Assessment Eligible Renewable Photovoltaics Technologies: Applicable Sectors: Commercial, Industrial, Residential, Nonprofit, Schools, Multi-Family Residential, Institutional Amount: Installed from August 8, 2008 to December 31, 2010: 8.75% of system expenditures per year for 4 years (total of 35%);
  • 20. Installed from January 1, 2011 to December 31, 2012: 5% of system expenditures per year for 4 years (total of 20%) $62,500 annually or the amount of real property taxes owed during a Maximum Incentive: year Effective Date: 08/08/2008 In August 2008 the State of New York enacted legislation allowing property tax abatements for photovoltaic (PV) system expenditures made on buildings located in cities with a population of 1 million or more people. This essentially limits the abatement to systems installed within New York City. Eligible buildings include all real property except utility real property. The abatement allows building owners to deduct from their total real property taxes* a portion of the expenditures associated with installing a PV system on an eligible building. Systems placed in service between August 8, 2008 (the effective date) and December 31, 2010 are eligible for an abatement of 8.75% of eligible expenditures annually for four years. Systems placed in service between January 1, 2011 and December 31, 2012 are eligible for an abatement of 5.0% of eligible expenditures annually for 4 years. Thus the total property tax benefit can amount to either 35% or 20% of the installed system cost depending on when it is built. The maximum abatement during a year is $62,500 or the amount of real property taxes owed during the year. Unused balances may not be carried forward to subsequent years. Eligible expenditures include reasonable expenditures for materials and labor associated with planning, designing, and installing the system. Expenditures incurred using a federal, state, or local grant are not eligible, nor are interest or finance charges. The U.S. Treasury allows Energy Tax Credits for homeowners and business owners. Taxpayers are allowed one tax credit equal to 30 percent of the qualified investment in solar panels, and another equivalent 30% credit for investing in a solar water heating system.

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