Solar Rebates and Incentives

Due to the availability of rebates and tax incentives, the cost of investing in solar power is far less for Long Islanders in comparison to most other municipalities in the Country. In fact, taking advantage of the available rebates and incentives can reduce the system cost by as much as 75%! The rebates and incentives which have the greatest impact on the overall cost of a PV system are listed below. Some municipalities offer additional incentives such as waived permit fees, but these have a smaller impact on the total system cost. Please visit the Solar Power Costs page to see how these drastically reduce the cost of going solar!

Residential

LIPA Rebate: LIPA, through the Solar Pioneer Program, provides the greatest savings for residential PV systems. For each Watt of rated equipment capacity of your system, LIPA will refund $1.75 (up to 50% of the total system cost). Therefore, for an average system of 5kW, the refund will be $8,750. The maximum rebate is $17,500. There is no set expiration date for the program, however the rebate rate drops periodically.

New York State Tax Credit: New York State grants personal tax credits for the installation of PV systems through the Solar and Fuel Cell Tax Credit. NY will allow credits for up to 25% of the system cost, up to a maximum of $5,000. The 25% can only be applied to the cost of the system less the amount received back from the LIPA rebate. Excess tax credits can be carried over for 5 years.

Federal Tax Credit: The Federal government also grants tax credits for the installation of PV systems through the Residential Solar and Fuel Cell Tax Credit. The Federal government will allow credits for up to 30% of system costs, with no maximum amount. The 30% should be applied after all other rebates and incentives have been deducted. Excess tax credits can be carried to the succeeding tax year.

New York State Property Tax Exemption: Installing a solar system can significantly increase the value of your home. The Solar, Wind & Biomass Energy Systems Exemption ensures that you real property taxes will not increase as a result of the installation of a PV system. The exemption lasts for 15 years from the time of installation.

Commercial

LIPA Rebate: LIPA, through the Solar Entrepreneur Program, provides significant savings for commercial PV systems. For each Watt of rated equipment capacity of your system, LIPA will refund $1.75 for a system up to 50kW. Therefore, for an average system of 15kW, the refund will be $26,250. There is no set expiration date for the program, however the rebate rate drops periodically.

Federal Tax Credit: The Federal government grants tax credits for the installation of PV systems through the Business Energy Tax Credit. The Federal government will allow credits for up to 30% of system costs, with no maximum amount. While the 30% can be applied before the other rebates and incentives have been deducted, the value of the rebates will be taxable. Excess tax credits can be carried to the succeeding tax year.

Modified Accelerated Cost-Recovery System (MACRS): Under the federal Modified Accelerated Cost-Recovery System (MACRS), businesses may recover investments in solar power in a 5 year accelerated depreciation schedule. In addition, as part of the Bonus Depreciation program, between 50% and 100% of the system costs can be deducted in the tax year that the system was installed with the balance (if any) in the subsequent 4 years.

New York State Property Tax Exemption: Installing a solar system can significantly increase the value of your business. The Solar, Wind & Biomass Energy Systems Exemption ensures that you real property taxes will not increase as a result of the installation of a PV system. The exemption lasts for 15 years from the time of installation.

Related Topics

Benefits of Solar Power | Solar Power Costs | How to Get Solar