The Megawatt Block Incentive Structure
New York’s Megawatt Block Incentive is a direct, generous incentive for going solar. Part of the state’s NY-Sun Initiative, the program provides an up-front, dollars-per-watt rebate for both commercial and residential solar panel systems. How large a rebate you get depends on how much solar energy is already being produced in your area, and it could be as high as $1 per watt.
The NY-Sun Initiative
Mentioned above, the NY-Sun is an umbrella program for a number of solar industry support mechanisms in New York State. One component is the Megawatt Block Incentive Structure, and there are more. NY-Sun, in conjunction with NYPA, also provides the backbone for the state’s Community Solar and K-Solar programs.
State Electric Rates
New York ranks seventh in high electricity rates; 43 other states are cheaper. Solar power becomes more attractive the more you pay for other electricity. Higher electric rates make an investment in solar energy much more cost-effective. New York’s skyhigh power rates make investing in solar power more attractive.
State Tax Credit
The generous state tax credit that is available to New Yorkers who purchase a solar system outright is a compelling argument for utilizing a renewable energy source. Known as the Solar Energy System Equipment Credit, owners can get 25% of their total system cost covered or $5,000, whichever is less. There’s also the possibility of carrying over any excess to the following fiscal year for those who don’t meet the minimum threshold to claim this credit all at once.
Reforming the Energy Vision (REV)
The goal of the REV Initiative is to refocus New York State’s energy systems on “distributed energy” technologies like rooftop solar panels and energy storage. Although REV does not directly subsidize rooftop solar power, the ultimate aim of the initiative is to level the playing field for distributed energy versus centralized power plants (like coal and gas) through market reforms.
Federal Tax Credit
Another big perk solar system owners can enjoy is being able to deduct 26% of your system’s total cost (after deducting New York state rebates) from your Federal taxes. After 12/31/2020, that percentage will drop 22%, so time is off the essence!