NY SOLAR INCENTIVES & FINANCING
The Dollars & Cents of Going Solar

Solar Costs
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:

NY Solar Incentives & Financing

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:

  1. NY-SUN Solar PV Rebate or Incentive ($0.40/W)   
  2. Federal Tax Credit (30%)   
  3. 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
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
Monthly Cost: $106.40 Monthly Cost: $69.68
Clean Energy Credit Union Loan
Sungage Financial Loan

 

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