FREE Renewable Energy EvaluationNY SOLAR INCENTIVES & FINANCING
The Dollars & Cents of Going Solar
For most people, deciding that they’d like to go solar isn’t difficult—but answering two important questions is:
There are a variety of ways to reduce the out-of-pocket contribution and finance the cash required. Below we explain available NY solar incentives and financing options, and apply each to a real-life example:
How Much Will It Cost?
By taking advantage of government incentives and tax credits a solar power plant for your home is a solid financial investment. Payback periods are short, return on investment high and you fix your energy costs well into the future. There are three levels to these as follows:
- NY-SUN Solar PV Rebate or Incentive ($0.20/W)
- Federal Tax Credit (30%)
- NYS Tax Credit (25% up to $5,000)
Credits & Incentives: Example
Here’s how the federal and NY solar incentives and tax credits play out using the example above:
| System Cost | $22,550 |
|---|---|
| NY-SUN Solar PV Rebate ($0.20/W) Like cash off; goes directly to system builder upon completion. |
-$1,280 |
| Contract Cost | $21,270 |
| 30% Federal Tax Credit Based on contract cost ($21,270 x .30); deduction from federal tax bill for year paid |
-$6,381 |
| 25% NYS tax credit ($5,000 maximum) Based on contract cost ($21,270 x .25); deduction from state tax bill for year paid |
-$5,000 |
| Effective Total Cost | $9,889 |
| System Cost | $22,550 |
|---|---|
| NY-SUN Solar PV Rebate ($0.20/W) Like cash off; goes directly to system builder upon completion. |
-$1,280 |
| Contract Cost | $21,270 |
| 30% Federal Tax Credit Based on contract cost ($21,270 + x .30); deduction from federal tax bill for year paid |
-$6,381 |
| 25% NYS tax credit ($5,000 maximum) Based on contract cost ($21,270 x .25); deduction from state tax bill for year paid |
-$5,000 |
| Effective Total Cost | $9,889 |
How Will I Pay for It?
Installing a solar array is a smart investment—but it must make sense financially for your family. It’s possible to lease a system with no money down, but it’s not advised. These financing options are far more advantageous:
- Home Equity Line of Credit (4.75% – 6.49%) Secured loan typically provides the lowest interest rates. Can cover full contract cost, including state and federal taxes for zero money out of pocket
- NYSERDA Smart Energy Loan (Currently 3.49% or 6.99%) 15 year loan that can cover up to $25,000 of total system cost. Two loan rates offered depending on location and income.
- Credit Human Solar System Loans (7.99%) 10, 15 or 20 year loans that can cover entire contract cost (up to $100,000). Once received, tax credits can be used to reamortize loan at no cost for lower monthly payments, or kept for other use.
Considering Leasing? Read this first »
Financing Options: Example
Here’s how these options break down using the example above:
| Option #1: HELOC | Option #2: NYSERDA Smart Energy | Option #3: Credit Human |
|---|---|---|
| Contract cost: $21,270 | Contract cost: $21,270 | Contract cost: $21,270 |
| HELOC loan: -$21,270 10 year loan @ 4.75% |
Smart Energy Loan: -$21,270 15 year loan @ 3.49% |
Credit Human Loan: -$21,270 15 year loan @ 7.99% $11,381 – Tax credits used towards loan $9,889 – Re-amortized loan amount |
| Total out of pocket: $0 | Total out of pocket: $0 | Total out of pocket: $0 |
| Monthly Cost: $223.01 | Monthly Cost: $106.40 | Monthly Cost: $94.45 |
| Option #1: NYSERDA Smart Energy | Option #2: Credit Human |
|---|---|
| Contract cost: $21,270 | Contract cost: $21,270 |
| Clean Energy Credit Union: -$21,270 15 year loan @ 3.49% |
Credit Human Loan: -$21,270 15 year loan @ 7.99% $11,381 – Tax credits used towards loan $9,889 – Re-amortized loan amount |
| Total out of pocket: $0 | Total out of pocket: $0 |
| Monthly Cost: $106.40 | Monthly Cost: $94.45 |
