What Is Solar Energy?
Solar power is sunlight that is converted into electricity for everyday use. As a renewable energy source, solar energy does not deplete the world’s limited resources. It harbors a reserve with unlimited potential. This is hugely important in combating the rising global greenhouse gas emissions. And in improving the environmental sustainability of our actions.
New York Solar Incentives
It’s hard to argue the benefits of going solar. The biggest misconception many people have considering installing solar panels is the up-front cost in doing so. Despite being able to recognize the long-term financial benefits, many may believe it is not feasible for them to install it. The New York Solar Incentives are very attractive. In New York, a Government program is in place to off-set these costs. Encouraging residents to switch to solar power over out-dated, non-renewable methods.
There are multiple tax-relief incentives implemented to encourage solar panel installation.
New York Solar Tax Credit
One in place, is the New York Solar Tax Credit. Which is an income tax credit of 25% of the cost of the system. Within a $5,000 limit for residential systems. Unlike a tax deduction which reduces your tax liability and is therefore only worth a fraction of its dollar value. A tax credit can be subtracted directly from your tax bill, dollar-for-dollar. This means that you can count it as pure savings
New York’s Solar Tax Credit is one of the most flexible of its kind in the country – you can ‘roll over’ excess credits for up to five years.
When purchasing your solar panel system you are exempt from paying New York State Sales Tax. This saves you 8.625% which can really add up!
In most areas of New York state, solar panels that are installed on a roof are exempt from property taxes. This is known as the New York Solar Property Tax Exemption. If you have a property tax exemption for an upgrade on your home, that means that you will not have to pay any extra taxes on that upgrade. This incentivizes homeowners to make improvements on their homes. Since they will be able to get a higher return on their investment should they decide to sell. The NY Solar Property Tax Exemption lasts for 15 years.
These incentives show that the New York State is urging people to switch to a cleaner, safer, and more sustainable electricity source.
In addition to the New York Solar Tax Credit, the Federal Solar Investment Tax Credit, typically knocks off another 30 percent off of the cost of your system. But don’t wait too long to take advantage of these incentives because after 2019, they are dropping down 4% each year until they are eliminated in 2022.
Storing Excess Energy
New York state is tackling is the steep cost of storing your solar energy. There is a net-metering system implemented whereby individuals and businesses can store energy, up to a certain amount, in the electric grid. This means that when there is more solar energy than required it is not wasted, and is stored for when there is a lack of sunlight (namely at night). This system allows users to account for lulls in winter where there is less sunlight so that they can install solar panels that will collect enough energy to provide electricity throughout the year.
In months when you generate excess power PSEG Long Island will let you earn credits that are added to your Energy Credit Bank. Which will appear on your bill. Credits are used to lower future bills.
Financing Your Investment
NY-Sun (the $1 billion investment plan) also works directly with contractors of solar panels to help off-set the cost of installation. This directly affects the buyers as they are presented with lower cost panels that are far more affordable.
Furthermore, NY-Sun offers financing options for those who cannot afford the vast up-front costs of installing solar systems. There are 2 loan options: On-Bill Recovery Loans, and Smart Energy Loans. The former of the two simply adds the cost of the loan to the monthly household utility bills until it is paid off. If a homeowner is to move, then this cost would simply be passed onto the buyer. Rolled into their monthly utility bills. This way provides people with a less overwhelming outcome. That does not heavily affect their financial situation. The second option, Smart Energy Loans, are repaid directly to the NY-Sun loan servicer. Which keeps it separate from bank interference and complicated interest schemes.
New York provides its people with a plethora of opportunities in or to encourage the rise of solar power. If other states and countries followed suit, this could have a huge impact on the levels of greenhouse gas emissions. Which in turn would promote cleaner air and a more sustainable environment for current generations and their off-spring.
The professionals at Smart Home Energy Source are ready to review the New York Solar Incentives and give you a free energy assessment and design consultation today!