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 ($0.40/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 ($0.40/W) Like cash off; goes directly to system builder upon completion. |
-$2,560 |
| Contract Cost | $19,990 |
| 30% Federal Tax Credit Based on contract cost ($19,990 x .30); deduction from federal tax bill for year paid |
-$5,997 |
| 25% NYS tax credit ($5,000 maximum) Based on contract cost ($19,990 x .25); deduction from state tax bill for year paid |
-$4,998 |
| Effective Total Cost | $8,995 |
| System Cost | $22,550 |
|---|---|
| NY-SUN Solar PV Rebate ($0.35/W) Like cash off; goes directly to system builder upon completion. |
-$2,560 |
| Contract Cost | $19,990 |
| 30% Federal Tax Credit Based on contract cost ($19,990 + x .30); deduction from federal tax bill for year paid |
-$5,997 |
| 25% NYS tax credit ($5,000 maximum) Based on contract cost ($19,990 x .25); deduction from state tax bill for year paid |
-$4,998 |
| Effective Total Cost | $8,995 |
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
- Clean Energy Credit Union (6.25% – 6.75%) 12, 15 and 20 year terms available. 12 – 18 month balloon loans provided for federal tax credit portion.
- Sungage Financial Loan (0% on Tax Credit portion, 4.99% – 6.99% on remainder, depending on terms.) 5, 10 ,15 and 20 year terms available. Includes 12 month same as cash bridge loan for federal and state tax credits. Most convenient financing platform with
Considering Leasing? Read this first »
Financing Options: Example
Here’s how these options break down using the example above:
| Option #1: HELOC | Option #2: Clean Energy Credit Union | Option #3: Sungage Financial |
|---|---|---|
| Contract cost: $19,990 | Contract cost: $19,990 | Contract cost: $19,990 |
| HELOC loan: -$19,990 10 year loan @ 4.75% |
Clean Energy Credit Union: -$5,997 12 – 18 month, Short-term tax credit loan Clean Energy Credit Union: -$13,993 20 year @ 6.75% loan |
Sungage Financial loan: -$19,990 20 year loan @ 6.99% $10,995 – Deferred Payment Portion $8,995 – Monthly Payment Portion |
| Total out of pocket: $0 | Total out of pocket: $0 | Total out of pocket: $0 |
| Monthly Cost: $209.59 | Monthly Cost: $106.40 | Monthly Cost: $69.68 |
| Option #1: Clean Energy Credit Union | Option #2: Sungage Financial |
|---|---|
| Contract cost: $19,990 | Contract cost: $19,990 |
| Clean Energy Credit Union: -$5,997 12 – 18 month, Short-term tax credit loan Clean Energy Credit Union: -$13,993 |
Sungage Financial loan: -$19,990 20 year loan @ 6.99% $10,995 – Deferred Payment Portion $8,995 – Monthly Payment Portion |
| Total out of pocket: $0 | Total out of pocket: $0 |
| Monthly Cost: $106.40 | Monthly Cost: $69.68 |
