Solar incentives are available to New York City residents through several different channels. There are several options to get a tax credits, net metering or community solar. Community solar is a more cost-effective option than a rooftop system. Community solar may be a viable option if you are interested, but don’t want to spend a lot of money on a large-scale system.
Net metering
Net metering, which allows customers of solar energy to sell surplus electricity back into the grid, is one the most popular incentives programs in New York. Utility companies will reimburse you for the cost of solar power, and this will help you to save money on your utility bills. A solar system must be efficient in order to be eligible under net metering.
In 1997, net metering was introduced in the Empire State. It is intended to reward homeowners who generate more electricity than they use. While net metering may offer homeowners great savings, it also places a lot more stress on the grid. NYPSC is trying to fix this problem by creating VDER, a new billing system that rewards solar consumers who reduce their utility bills.
Credit for tax
Solar panels can be very expensive. But, with the tax credit you can save thousands. The contractor will receive a tax credit that will cover 20% to 30% of the installation cost for a PV system. In order to be eligible, your solar system must be installed within a given time.
Based on your family's tax liabilities, you might be eligible for a tax credit for solar energy. Even though the credit is limited to your annual tax liability, it can still be an option for people who want to reduce their electric bills. This tax credit is able to be spread over many year, making it more affordable than you might think.
Community solar
New York City offers many community solar incentives. These incentives typically cover 20-30% of installation costs for a solar PV array. These funds are paid directly the contractor who installs a solar system. Once approved, community solar members have up to a year to complete the installation process.
One community project on the Brooklyn Army Terminal will offer a 15% discount in electricity bills for the initial year. The project, developed with the NYCHA and Sol Purpose, employed 13 formerly unemployed residents. The buildings will be improved with the revenue from the project. The developer had previously arranged for two additional megawatts of community-scale solar with NYCHA at the time of the announcement. However, the timeline had to be shortened.
Community solar is much cheaper than a rooftop installation
The simplest way to generate clean electricity is through community solar projects. In accordance with the amount of solar power produced, subscribers of such projects can have their monthly electric bills credited. This way, community solar subscribers will reduce their electric bills, while also helping the environment and supporting clean, local power. Depending on the type of project, subscribers may also opt for shorter terms or pay as you go payment terms.
Community solar projects don't have to be paid upfront, unlike rooftop systems. Through community solar projects, participants can save as much as 10% on their electricity bills. This option is also available to people who are unable to afford rooftop solar. Even though everyone may not have the means to access them, community solar projects can reduce their electricity costs.