Solar Tax Credits and Rebates
State and Federal incentives make a difference
Save Over 60% with Tax Credits and Rebates
Sunzera will get you through
Sunzera understands that tax credits and rebates can work differently for each project so we are continually evaluating your specific project to get the right amount for you. The right amount means that we will manage factors that can limit your credits and rebates and work with you so that the appropriate level of savings is applied to lower the cost of your solar power project.
The Federal and New York State governments use tax credits and rebates to encourage homes and businesses to employ solar power.
- Tax credits reduce the amount of taxes owed when federal and state tax returns are filed. These are claimed by the homeowner or by the solar installer, depending upon the financing used, but are applied to lower the cost of the solar power system either way.
- Refunds are filed by the home or business owner but are paid directly to the installer. This avoids the owner from having to pay taxes on the refund.
Sunzera will pilot your project through the right credits and rebates and make sure all the paperwork is prepared to pursue and apply the savings to the cost of your solar power system.
NYSERDA Refunds
NYSERDA manages New York State’s solar refunds to homes and businesses. Sunzera will look at a number of programs for your project, but the primary program used is PON 2112 for residential and non-residential. This program is funded by surcharges on electric bills and is only available to homes and businesses that currently pay these surcharges (RPS/SBC on your monthly electric bill). These refunds are designed to drop over time as the cost of solar drops and as the funds allotted for these programs are expended.
- Residential: Limited to projects up to 25 kW. For Upstate projects, the incentive is currently $0.50 but will likely fall to $0.40 for new projects.
- Non-Residential: Limited to projects up to 200 kW. Includes small commercial, schools, not-for-profit and government. For Upstate projects currently at $0.40 per watt for first 50 kW and $0.30 for additional wattage up to 200 kW.
- Other programs exist for Large Commercial/Industrial over 200 kW Community Solar programs and schools.
To qualify for these rebates, a building audit, design application, agreement form and payment form has to be filed with NYSERDA and this process is included in the cost of the system. These rebates will reduce the amount of Federal Tax Credit that your project qualifies for. At the current rates it may be more cost efficient for your project to go for NYSERDA. Sunzera will evaluate your project specifics to determine if this rebate is right for your project.
Federal Tax Credit
The Federal Investment Tax Credit (ITC) provides a tax credit equal to 30% of the cost of a solar power system. This credit was just extended through 2018. If a NYSERDA rebate is used for your project, the 30% applies to the project cost minus the NYSERDA rebate. If you purchase the solar power system, your taxes would be reduced when you file your federal tax returns, and carried over for up to 5 years. If you lease your system, Sunzera would apply the tax credit to reduce the lease payments for your system.
New York State Tax Credit
New York provides a 25% tax credit for solar power systems installed on your primary residence. The tax credit is capped at $5,000. The size of your system should be considered relative to this tax credit as any project which costs above $20,000 would be capped out at the $5,000 maximum. This tax credit can only be claimed by the homeowner, even if the system is leased or under a power purchase agreement (minimum 10 year PPA). The credit would be applied by reducing your taxes when you file your state tax returns and carries over for up to 5 years.
Accelerated Depreciation
Some businesses with lease/PPA agreements will qualify for MACRS 5 year accelerated depreciation. Sunzera will evaluate if your project qualifies and discuss the cost savings for your project.
Contact Us
(585) 727-4168
Sunzera
71 Goodway Dr. S. Suite. 1
Rochester, New York 14623
Serving Rochester, Buffalo, Syracuse, Southern Tier NY
Let's Talk
Sunzera needs to meet with you before we can determine the solar power system that meets your needs. System size and design, tax credits, rebates, your utility rates, and your level of warranties and services are among the many variables that affect the pricing of your specific project.
