With natural resources dwindling and the current state of the world’s environment, using alternative energy like solar can be a game-changer. We can be good stewards of planet resources, as we save on energy costs. In fact, solar has become more affordable and easier than ever to have installed on your home with no cost out of pocket. Additionally, states like New York have added generous incentives. These include cash rebates, tax refunds, and credits as well as incentivizing electric companies who sign distribution generation agreements with homeowners.
Net metering applies to customers with solar systems. It basically means that electric companies must defray a portion of the electricity used by homeowners with solar power. This is where the distribution generation format comes into play. In New York, utilities owned by investors must provide between 25kW to 2 MW of net metering to customers.
The program has a limited capacity, so the first customers that enter the program are locked in. Public utilities are exempt from offering this program. However, some opt to participate. For example, Long Island Power Authority provides this program to homeowners in its service area.
Tax Refunds, Credits, and Exemptions
There are pocketbook incentives available to every homeowner. Tax savings in the form of cash refunds or rebates, and credits are available for solar energy homes. To start with, solar homes are exempt from paying property taxes as well as sales tax on initial and subsequent project costs.
In addition, there is a tax credit of 40% of the cost for an installed project. The program known as the Power Naturally Incentive offers a credit of $1.50 for each DC watt. The tax refund on personal income tax gives homeowners up to $12,500 or a maximum of 40% of the project installation cost.
Finally, there are rebate programs offering lucrative cash benefits up to $12,500 or a maximum of 40% of the project installation cost. This is equivalent to $1,750 for each kW installed. It should be noted that homeowners are eligible for all credits simultaneously.
Cost and Financing
There are factors that contribute to the cost of a solar project. They include the size of the system and the available sun resources of the home, among others. However, because of the programs, many solar manufacturing companies are in-step with affordable options. The range of a fully installed project for a home using 1,000 kWh monthly is $10,000 to $12,500. Fortunately, banks have developed financial packages to assist homeowners.
In addition, the premier company Ablaze Energy have several buying options to choose from. For example, there is Ablaze Energy PPA (Power Purchase Agreement), Ablaze Energy Lease, and the outright purchase of a PV solar system. The PPA and lease programs have a zero down payment, down payment plan and a prepaid agreement available.
Solar energy system homes are an easier proposition than ever before. States like New York and companies like Ablaze provide easy-to-understand and easy-to-implement opportunities for interested homeowners. So what are you waiting for? Join the solar energy revolution today by reaching out and learning more about the options available to you in your area!
This article was written by Brian Levesque. Brian is currently an electrical engineer that works on sustainable energy solutions for large corporations around the globe. Brian’s passion, however, lies in providing information for the layman to understand regarding green energy, and helping people understand how easy it is to obtain these renewable energy sources.