Helios Energy Systems

Building Green Relationships

New York State

Effective February 2, 2009, NYSERDA will be changing the incentives for the PV Incentive Program (PON 1050). The following incentive structure will be in effect for applications received after 5:00 PM on February 2, 2009:

  • Residential - $3.00 per watt up to the first 4 kW and $2.00 per watt after the first 4 kW up to a maximum of 8 kW per site/meter.
  • Commercial - $3.00 per watt up to the first 40 kW and $2.00 per watt after the first 40 kW up to a maximum of 80 kW per site/meter.
  • Not-for-Profit - $5.00/W up to a maximum of 25 kW per site meter.

To receive the existing incentives, complete applications must be received at NYSERDA's Albany office before 5:00 PM EST on February 2, 2009.

A revised Section 2 of PON 1050 will be posted on the NYSERDA Web site shortly. This document will further explain these changes.

NYSERDA Energy Incentive Program

The New York State Energy Research and Development Authority (NYSERDA) provide cash incentives for the installation of new Solar Electric or Photovoltaic (PV) systems by Eligible Installers. In general, incentives cover approximately 40-45% of the installed cost of a PV System.

Residential
  • Standard Residential Systems - $1.75 per watt up to the first 5 kW per site meter.
  • New York State ENERGY STAR® Labeled Homes - $2.25 per watt up to the first 5 kW per site meter.
  • Building Integrated PV Systems - $2.25 per watt up to 5 kW per site meter.
Non-Residential
  • Non-Residential Systems - $1.75 per Watt up to the first 50 kW per site meter.
  • Building Integrated PV Systems - $2.25 per Watt up to the first 50 kW per site meter.
  • School, Not for Profit, and Government Systems - $1.75/W up to a maximum of 25 kW per site meter.

Website: www.powernaturally.org/Programs/Solar/incentives.asp

Investment Tax Credit (Federal Tax Credit)

In October 2008, through the Energy Improvement and Extension Act of 2008 (Division B, Section 106), the 30% tax credits were extended until December 31, 2016. Now, both commercial and residential systems will be eligible for a 30% tax credit.

Residential - Residential Solar Investment Tax Credit (IR Code §25D)

Amount: 30% of expenditures

Maximum Incentive: no maximum limit

The bill allows individual taxpayers to use the credit to offset AMT liability, and to carry unused credits forward to the next succeeding taxable year.

Non-Residential - Business Solar Investment Tax Credit (IR Code §48)

Amount: 30% of expenditures

Maximum Incentive: no maximum limit

The bill allows the ITC to be used to offset both regular and alternative minimum tax (AMT) and waives the public utility exception of current law (i.e., permits utilities to directly invest in solar facilities and claim the ITC). The five-year accelerated depreciation allowance for solar property is permanent.

Modified Accelerated Cost-Recovery System (MACRS)

Under the federal Modified Accelerated Cost-Recovery System (MACRS), solar electric and solar thermal systems are eligible for 5 year the Modified Accelerated Cost Recovery System (MACRS). Using this depreciation schedule allows more of the depreciation to be taken sooner in the asset life which increases the overall financial return of the project.

Energy $mart Loan

The New York Energy $mart Loan Fund, administered by the New York State Energy Research and Development Authority (NYSERDA), provides reduced-interest rate loans through participating lenders to finance renovation or construction projects that improve a facility's energy efficiency or incorporate renewable energy systems. Any commercial, industrial, retail, agricultural, non-profit, residential, or multifamily facility that is an electric distribution customer of one of the State's six investor-owned utilities is eligible for this interest rate reduction program.

Website: nyserda.org/loanfund

New York State Solar Tax Credit

This personal income tax credit applies to expenditures on solar-electric (PV) equipment used on residential property. The credit, equal to 25% of the cost of equipment and installation, has been expanded to include solar thermal-equipment. The credit is capped at $5000.

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 Sales Tax 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 sale and installation of residential solar-energy systems are exempted from the state's sales and compensating use taxes. The exemption applies to solar energy systems designed to provide heat, cooling, hot water and/or electricity. The exemption does not apply to solar pool heating or other recreational applications. Solar systems are also exempt from property tax.

Solar Energy Systems Exemption

Section 487 of the New York State Real Property Tax Law provides a 15-year real property tax exemption for solar energy systems constructed in New York State.