Renewable energy is one of the main topics in reducing our carbon footprint of our planet. Many federal and state level organizations now offer loans and grants incentives to switch to "green energy" resources. There are tax incentives for solar and wind energy available to New York State residents. The New York State Energy Research and Development Authority (NYSERDA) has many grant programs to assist NY State residents and businesses to "go green".
Federal Tax Credit
The August 2005 Energy Bill provides a 30% Tax Credit on the cost of Solar Electric (PV) systems and Solar Thermal systems. This credit does not apply to Wind systems (see below for a new credit available for small wind systems). The 30% credit for solar is calculated on the Reimbursed System Cost. That is, the total cost of the system including materials, labor, permits, fees, taxes, shipping, etc. LESS whatever grants or rebates you received. Alternatively, you can treat the grant as separate income to your business, in which case you can calculate 30% tax credit against the entire system cost. However, in that case you may need to pay Federal income tax on the state grant.
New Wind Energy Credit
The Emergency Economic Stabilization Act of 2008 also added a new federal-level investment tax credit to help consumers purchase wind turbines for home, farm, or business use. Owners of wind systems can receive a credit for 30% of the total installed cost of the system, with no cap or maximum amount. The credit is available for equipment installed from January 1, 2008 through December 31, 2016. For turbines used for homes, the credit is limited to the lesser of $4,000 or $1,000 per kW of capacity.
Click here for info for Wind Energy Tax Incentives.
Click here for info for Residential Renewable Energy Tax Incentives.
New York Businesses & Residents NYSERDA Cash Incentives
NYSERDA Cash Incentives for Small Solar Electric or Photovoltaic Systems
The New York State Energy Research and Development Authority (NYSERDA),
through the New York State Energy $martSM program, is providing the following
incentives effective March 1, 2007:
Residential
- $4.00 per watt up to 5,000 watts or 5 kW,
- $4.50 per watt Energy Star up to 5,000 watts or 5 kW
- $4.50 per watt Building Integrated PV up to 5,000 watts or 5 kW.
- For additional kilowatts above 5 kW, all residential incentives will be reduced by $1.00 and all residential incentives will be capped at 10 kW.
Non-residential
- $4.00 per watt up to 25 kW,
- $4.50 per watt BIPV,
- $5.00 per watt for schools, non for profits, and municipalities.
- All non-residential incentives will be reduced by $1.00 per watt for additional kWs above 25 kW and non-residential incentives will be capped at 50 kW per site/meter and 100 kW per customer.
- Exemptions related to systems per customer may be considered on a case-by-case basis.
All customers will still be able to receive additional financial assistance through the Loan Fund. Under the NYSERDA program, cash incentives are only available for PV systems purchased through an eligible installer. All Incentives are subject to approval by NYSERDA. Tri-Brid Green Energy has certified installers that are authorized to apply for incentives for approved systems for eligible customers. Eligible customers are those who pay into the New York State System Benefits Charge (SBC).
New York Energy $martSM Photovoltaic (PV) or Solar-Electric System Incentive Program (50kW and smaller)
NYSERDA has cash incentives available for the installation of small PV or solar-electric systems. The cash incentives are only available for PV systems purchased through an eligible installer. NYSERDA's New York Energy $martSM initiative currently has several programs that, when combined with the PV cash incentives, could help offset the total installation costs of a PV system by 40-70%.
What do I need to know to participate in the New York Energy $martSM PV Incentive Program?
There are a three key pieces of information that you will need to know to determine if a new PV system is eligible for funding:
1) PV System Size - While incentives are capped at 50kW, PV systems can be larger than 50 kilowatt (kW). As a point of reference, a 2kW PV system could provide about 20% to 30% of the energy needs of an average home.
2) Grid-Connected - PV systems must be connected to your utility's electricity distribution system or "grid-connected." PV systems for homes or facilities that are not on a utility distribution system are not eligible for funding under this program.
3) New York State System Benefits Charge - PV systems must be installed at a site that pays into the System Benefits Charge (SBC). If you pay into the SBC, it will say so on your utility bill. If you are uncertain, please contact your electric utility. Some commercial and industrial customers do not pay into the Systems Benefit Charge, so check with your utility to be sure. Electric customers of the New York Power Authority (NYPA) and the Long Island Power Authority (LIPA) are not eligible for funding under this program. If you are a LIPA or NYPA customer, please contact your utility to see if they have similar programs.
What do "grid-connected" and "net-metering" mean and how do they impact me?
A PV system can be a grid-connected or it can work independent from a utility's electricity distribution system (off-grid). Only grid-connected PV systems are eligible for funding under this incentive program.
To connect your PV system to the electric utility system or grid, you must sign 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 utility grid and outlines metering arrangements (net-metering) for your PV system. Net-metering allows the PV system to send excess electricity back through the electric meter to the utility. The meter actually runs backwards! Through net-metering, excess electricity is "sold back" to the utility. Your utility will credit the excess power produced at the same rate paid for electricity purchased. Only residential PV systems of 10kW and smaller are eligible for net-metering.
NYSERDA is working to build a vibrant renewable energy industry in the State through its programs working with industry, the renewable energy workforce, inspectors, and other associated businesses.
NYSERDA invests in renewable energy through programs that provide funds to emerging businesses for product and business development, product marketing assistance, incubators for start up industry and other support.
By 2013, twenty-five percent of all power used in New York is to come from renewable resources via the Renewable Portfolio Standard (RPS). Renewable resources include solar, wind, biomass, and some hydroelectricity. In order to achieve the RPS “25 by 2013” goal, NYSERDA offers grants and incentives to help bring down the costs of these clean resources.
