It can often be hard to understand all of the different incentives available for installing solar for your home or business. Not everyone is aware that in addition to the federal income tax credit, you could be eligible for additional savings through state tax credits, a property tax abatement, a state grant, or Solar Renewable Energy Certificates (SRECs) depending on where you live. We’ll help you understand the benefits of these programs, realize your lifetime electricity savings, and install solar for $0 down!
The Federal Investment Tax Credit is Down to 26%!
The Federal Government has long supported the solar industry with a 30% Investment Tax Credit for buying a solar system. A tax credit is a dollar for dollar credit that a person or business can apply to their annual income tax bill. 2020 marks the first year that the credit is set to drop to 26% for newly installed customers. In 2021 it drops again to 22%, and then in 2022 it permanently drops to just 10% for businesses, and 0% for homeowners. The less time you debate joining the clean energy revolution, the more advantage you’ll get from it!
New York State adds its Own Income Tax Credit
As a New York resident, in addition to your federal return, you can claim an income tax credit on solar with New York State as well. The credit is capped at the higher of $5,000 or 25% of the cost of installation. Unlike the federal credit, homeowners can claim this whether they lease or purchase their solar. This means a homeowner who installs solar as-a-service with $0 down can still get back their first $5,000 in monthly payments, making solar effectively free for the first few years and allowing more homeowners like you to join in on the savings.
Landmarks Preservation Commission Incentivizes Historic Restoration Work
The Landmarks Preservation Commission has a special program in place to incentivize building owners to preserve and restore historic properties through another tax credit program! There are very strict requirements about the visibility of the installation from the street level, but once our design meets the program requirements, Solanta’s applicants earn an additional 20% of their cost to install the solar system!
New York City Residents Receive a Property Tax Abatement for Solar Generation
In addition to what the state provides, NYC residents are additionally entitled to a 4 year solar electric generating system property tax abatement worth 5% of the cost to install the system, meaning you get 20% back! Owners that pay their property taxes outright will see this abatement as a line item off each quarterly tax bill, whereas owners with a mortgage realize this benefit as a monthly deduction from the escrow payment.
New York State Funds Energy Research and Development
NYSERDA is the New York State Energy Research and Development Authority, a state agency that runs programs to incentivize clean energy adoption and provides resources to contractors like us. One of their most popular programs is the NY Sun Grant program, which provides $300 per watt to fund home solar installations in the ConEdison utility area and $350 per watt to homes upstate in Central Hudson Gas & Electric and New York State Electric & Gas utility areas. Plus, with NYSERDA’s Affordable Solar program, homeowners with a household income of less than 80% of their county’s median income are eligible for an additional rebate!
Special Solar Savings for New Jersey Residents!
New Jersey’s approach to solar savings is through a market-based incentive called Solar Renewable Energy Certificates (SRECs). Solar energy systems are registered with the state’s Clean Energy Program and generate 1 SREC for every 1,000 kWh generated during the system’s first ten years of operation. This means that an 8kW solar system that produced 10,000 kWh in a year would have generated 10 SRECs that year. Home and business owners can register with an SREC trading exchange where they these certificates can be bought and sold. SRECs are treated as an investment by some, but are typically sold to New Jersey Utility companies so that these companies can reach clean energy production quotas. The value of SRECs has consistently hovered between $200 and $230 over the last 2 to 3 years, making them reliable enough for property owners to see their value!
NJ homeowners also know better the burden of high property taxes better than most. Fortunately, solar won’t increase that burden. Home owners can apply for a certificate from their local assessor which will reduce the assessed value of their property to what it would be without the solar energy system. This leads to a lower tax bill, plus all of the other savings generated by solar.
With Their Powers Combined, You Can Save up to 20%* on Your Electric Bill!
As great as these solar benefit programs are, many homeowners like you currently pay high electric bills and need relief NOW. Solanta helps you take advantage of these credits through financing and as-a-service agreements, allowing you to install a solar system that will reduce the cost of electricity TODAY. We can install for $0 down, and you won’t start paying until 2 months after your system is installed and producing clean power. Home and business owners continually choose solar energy because it saves them THOUSANDS of dollars!