New York isn’t particularly known for its clear sky or ample sunshine, generating only 3,904 kJ/m² of sunshine per year. However, unlike its sunshine, the Big Apple is one of the leading solar energy generators, ranking 8th in cumulative solar generation in the country in Q4 of 2023. 
More than most, New York is very active with its commercial solar incentives that New York businesses and even homeowners can explore. Incentives in the state can save up to 70% of your solar system cost, especially considering the state’s high electricity rates. In this article, commercial-solar discusses the most important New York commercial solar incentives and how to qualify.
Modified Accelerated Cost-Recovery Systems (MACRS)
Under the federal Modified Accelerated Cost-Recovery System (MACRS), businesses in New York can recover investments in solar properties, allowing for accelerated depreciation deductions. Additionally, the Tax Cuts and Jobs Act of 2017 introduced bonus depreciation of 100% for qualified property acquired and placed in service after September 27, 2017, further incentivizing solar investments. New York solar customers can benefit from these depreciation provisions to reduce the cost of installing solar energy systems and promote renewable energy adoption in the state.
Business Investment Tax Credit (ITC)
The Investment Tax Credit is a commercial solar incentive New York businesses can still explore in 2024. This is a financial incentive administered by the IRS which offers a 30% tax return on the cost of your solar system. To qualify, solar systems must have been placed in service in 2022 or later and begin construction before 2033. In 2033, the incentive steps down by 8 percent.
Renewable Electricity Production Tax Credit (PTC)
Renewable Electricity Production Tax Credit (PTC) New York
The Production Tax Credit is a financial incentive for businesses with solar systems to earn a per kilowatt-hour tax credit for electricity generated. Like the ITC, this incentive is also administered by the IRS and as such, you cannot claim both incentives for the same property. However, exceptions may apply for co-located systems such as solar and storage, subject to further guidance from the IRS. To qualify, Solar systems placed in service between 2022 and 2033 are eligible for 2.75 ¢/kWh if they meet specified labor requirements or are under 1 megawatt (MW) in size.
Net Metering in New York 2024
Net-metering in New York
A form of net metering is available in every state. This incentive lets solar users send their excess energies to the grid and get energy credits to help them pay for electricity when their solar isn’t generating enough electricity. In 2017, New York net metering transitioned from compensating distributed energy resources (DER) through net metering to Value of Distributed Energy Resource (VDER) tariffs that more accurately reflect the costs and benefits of DERs on the grid. The difference is that VDER considers energy value, environmental value, demand reduction value, and more, making it an improvement to the DER.
How to enroll in net metering (VDER) in New York
To enroll in net metering, also known as Value of Distributed Energy Resources (VDER) in New York, customers typically start by contacting their utility company or energy service provider. They will guide customers through the enrollment process, typically involving submitting an application and providing information about the installed renewable energy system. Once approved, customers can begin generating electricity from their renewable energy system and receive credits on utility bills for any excess energy exported to the grid. Depending on the utility, you may also be required to pay a Customer Benefit Contribution (CBC) charge.
Additional Local Commercial Solar Incentives New York: Incentives, Rebates, & Grants
New York has one of the highest electricity rates for both commercial and residential customers. Thanks to local New York commercial solar incentives, solar is an incredibly beneficial investment in the Big Apple State. Below are several local incentives that will allow you to pay 70% less for your solar, 5 times more than is offered in most states.
NY-Sun PV Incentive Program
NY-Sun PV Incentive Program
The NY-Sun incentive program is powered by the New York State Energy Research and Development Authority (NYSERDA). This incentive offers performance-based payment for solar systems with sizes ranging from 750kW to 7.5MW for commercial and industrial customers. This commercial solar incentive in New York is available in the Con Edison service territory (New York City), and the upstate regions. Rates may defer depending on your business location. However, you can expect a $0.30/kW compensation for customers in the upstate region and $0.20 for customers in NYC. To claim this incentive, customers must have their business in the service location, meet the size and technical requirement, must be installed by a NY-Sun participating contractor, and the grid must be connected and displace utility-provided electricity.
New York City – Property Tax Abatement for Photovoltaic (PV) and Energy Storage Equipment
The New York City Property Tax Abatement for Photovoltaic (PV) and Energy Storage Equipment offers building owners a deduction from their total real property taxes for installing PV systems. The abatement percentage varies depending on the time period the system was installed, with the current rate set at 7.5% for systems placed in service between 2024 and 2034. Building owners must file applications for the abatement with the Department of Finance by March 15th to be eligible for a tax credit during the same year, with late applications applied to taxes owed in the following fiscal year. Eligible expenditures include materials, labor, architectural and engineering services directly related to system installation, and the program is administered in collaboration with the Department of Buildings. You can find further guidance in the guidebook.
NY Green Bank
The NY Green Bank, established in 2013 is a New York commercial solar incentive that aims to accelerate clean energy deployment in New York State by addressing market and financial barriers through private sector partnerships. With an initial capitalization of $1 billion, sourced from various reallocated funds and additional approvals, the bank offers flexible financing structures to support economically viable clean energy projects. Eligible technologies include solar and other renewable energy generation technologies, with proposals evaluated through an open solicitation process. The bank considers factors such as financial returns, scalability, and greenhouse gas reduction potential when evaluating projects, typically investing alongside other capital providers in projects ranging from $5 million to $50 million.
New York Solar Sales Tax Exemption
New York offers a 100% sales tax exemption on solar energy systems, including those owned by third-party owners. The exemption covers solar systems that produce energy for heating, cooling, hot water, and/or electricity, excluding equipment part of a “non-solar energy system”. Local governments may also grant exemptions from local sales taxes, with specific regulations outlined by the New York Department of Taxation and Finance. A Sales Tax Exemption Certificate is required to claim this exemption for solar energy-related equipment purchases.
Clean Energy Fund (CEF)
The Clean Energy Fund is a commercial solar incentive New York businesses should also take note of in 2024. This is a public benefits fund approved by the State’s Public Service Commission in 2016 as a successor to New York’s Energy Efficiency Portfolio Standard (EEPS) and Renewable Portfolio Standard which both expired in 2015. In its wake, the state government approved $5 billion in clean energy funds to incentivize renewable energy upgrades between 2016 to 2025 or till the funds run out. The funds are currently in distribution through the NYSERDA.
USDA – High Energy Cost Grant Program
High Energy Cost Grant Program
Agriculture is a billion-dollar industry in New York as the state has some of the leading farms in the country. With the USDA High Energy Cost Grant Program, agricultural producers and rural small businesses can have the USDA pay for 25% of their solar systems, paying up to $500,000 per system. This program has successfully distributed over 2 billion in grants since its inception in 2016. To qualify, stay up-to-date on application dates, apply when due, and if you qualify, the USDA will contact you.
Solar Potential in New York: Incentives and Savings
The payback period of a solar system is directly influenced by the amount of sunlight your solar receives and how much you save on electricity bills. Considering New York’s residents and businesses pay some of the highest electricity rates despite being a deregulated market, you can expect to save more with solar in the Big Apple State. On average, the state has a 10-year payback period on solar investment without incentives. Taking advantage of some of the incentives we have covered, such as the ITC, NY-Sun program, and VDER you can easily pay off your solar investment in less than 5 years. You order a free consultation to help you determine how much incentives will save you based on your industry and the size of your system.
Understanding the Electric Utility Landscape and Rates in New York
New York began its electricity deregulation in 1996, providing a more competitive electricity landscape. However, today the state has one of the highest electricity rates in the country and rising. Utilities throughout the state apply for rate hikes in a constant cycle, and regulators almost always approve them in some modified form. Projections even say ConEd customers can expect to pay up to $65 more per month by early 2025. Commercial NY customers across the various utilities pay between 16.66¢ to 18.07¢ today, over 10 times more than consumers in North Dakota pay.
Impact on Solar Energy Decisions In New York
The significant disparity in electricity prices between New York and North Dakota, where customers in New York pay over 10 times more, has a profound impact on solar energy decisions in the Big Apple State. These high electricity costs create a greater incentive for businesses to invest in solar energy systems as a means of reducing electricity bills and achieving long-term cost savings. Additionally, state policies and incentives aimed at promoting renewable energy, coupled with the desire to reduce dependence on fossil fuels and mitigate environmental impact, further bolster the attractiveness of solar energy investments in New York.
Are Solar Panels Worth It in New York?
High electricity rates, good sunshine, and solar incentives are great recipes for solar investments, all of which New York offers. The Big Apple state offers decent sunshine and enough solar incentives to make solar panels worth it for commercial solar users. Also, considering solar panel prices have fallen by 47% in the last 10 years, business owners can explore the possibility of using solar on their property without having to worry about overbearing costs. However, while we think solar panels are a great choice, your business industry and what incentives are available to you also play a critical role. Ensure to consult a solar company before you make the decision to go solar.
Why Choose Commercial-Solar.org Solar Company in New York?
Commercial-solar has installed over 20 megawatts of solar across the US since 2020. Our approach combines an ROI-centric proposal, providing flexible options and rebates to reduce your costs up-front and over time for businesses and nonprofits. As an industry leader, you can expect the following:
Expertise: Commercial-Solar.org boasts a team of highly skilled professionals with extensive experience in the solar industry, ensuring top-notch service and tailored solutions to meet diverse business needs.
Customized Solutions: The company offers personalized solar solutions designed to maximize energy savings and optimize performance for each client, whether it’s a small business or a large corporation.
Quality Products: Commercial-Solar.org partners with leading manufacturers to provide high-quality solar panels, inverters, and other components, ensuring long-lasting reliability and efficiency.
Financial Benefits: With Commercial-Solar.org, businesses can take advantage of various financial incentives, including tax credits, rebates, and financing options, to make solar investments more affordable and lucrative.
Ongoing Support: From initial consultation to installation and maintenance, Commercial-Solar.org offers comprehensive support every step of the way, ensuring smooth project execution and continued system performance.
Commitment to Sustainability: By choosing Commercial-Solar.org, businesses demonstrate their commitment to sustainability and environmental stewardship, contributing to a cleaner and greener future for New York and beyond.
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