Why Should NYC go Solar?

New York City has gone green. The current administration is committed to promoting renewable energy and is offering significant incentives for Solar PV Systems in the 5 boroughs. Investing in a solar system will increase the value of your property, reduce expenses and lower your carbon footprint.

The NYSERDA Program

The New York State Energy Research and Development Authority (NYSERDA) is the largest proponent of renewable energy in NYS. NYSERDA’s aim is to help New York meet its energy goals, including promotion of renewable energy. The NYSERDA program offers NYC businesses a rebate, depending on the project size, of up to $87,500 of the solar system’s installation price. This rebate is paid directly to OnForce Solar, thereby lowering your cash outlay for a solar system.

Investment Tax Credit

NYC businesses get back 30% of the gross installation price as an investment tax credit. This benefit reduces the out-of-pocket investment, thereby boosting Return on Investment.

NYC Property Tax Abatement

New York City provides a Property Tax Abatement of up to 20% of the system cost. This abatement is spread across 4-years and is based upon the gross system cost, less applicable rebates and grants.

Depreciation

Solar energy systems were depreciated based upon a 6-year MACRS schedule.

1st year 2nd year 3rd year 4th year 5th year 6th year
60% 16% 9.8% 6% 6.5% 2.88

 

Net Metering

When a Solar PV System is installed, the meter records both incoming and outgoing electricty. As your solar system produces surplus electricity, your utilty company credits you for all outgoing (un-used) electricity.

Return On Investment

Solar PV Systems are an excellent investment and long-term hedge against rising electricity prices. New York City businesses typically see rates of return in excess of 20%, with payback periods as little as 3-6 years.

Commercial Incentive Example
Gross System Cost 100%
NYSERDA Rebate -25%
Federal Tax Credit -30%
NYC Property Tax Abatement (PTA) -15%
6 Year Depreciation -28%
Net Cost After Incentives 2%