1. PV Incentives
PON 1050 Solar Electric Incentive Program
The Public Service Commission (PSC) issued an Order, effective October 28, 2008, to
reallocate funding to the Customer-Sited Tier of the Renewable Portfolio Standard. As
part of that Order, the PSC authorized $20.6 million for the solar photovoltaic (PV)
category.
More details regarding this can be found in the PSC's full Order.
WHAT IS THE SOLAR ELECTRIC INCENTIVE PROGRAM?
It’s an innovative program from the New York State Energy Research and Development
Authority (NYSERDA) that provides cash incentives for the installation of new Solar
Electric or Photovoltaic (PV) systems by Eligible Installers. Funding of approximately
$13.8 million in incentives, through 2009, for the Solar Electric Incentive Program
(“Program”) has been allocated by the New York State Renewable Portfolio Standard.
Additional funding may be made available based on customer demand and program
success. Incentives are granted on a first-come, first-served basis. Applications will be
accepted through December 31, 2009, or until funds are fully committed, whichever
comes first.
HOW DOES THE PROGRAM WORK?
The cash incentives are available for qualified systems and customers, through
applications submitted to the Program by an “Eligible Installer.” Eligible Installers are
those who have demonstrated technical competence in the PV field and who have signed
written agreements with NYSERDA to abide by certain Program terms and conditions.
The cash incentives are paid directly to the Eligible Installer, but must be passed on in
full to the customers. A list of all Eligible Installers is available at:
• http://www.powernaturally.org/includes/PVInstallers.aspx?t=pv
Eligible Installers are responsible for preparing and submitting all necessary incentive
paperwork to NYSERDA.
In general, incentives for a typical residential or commercial system cover approximately
40-45% of the installed cost of a PV System. For commercial systems, incentives may be
combined with loan assistance from NYSERDA through the NY Energy $mart Loan
FundSM to the extent available. Customers may also be eligible for New York State and
federal tax credits.
PV installers, electricians, builders, and contractors with training and experience in
designing and installing PV Systems are encouraged to submit applications to become
Eligible Installers. Installers can apply for Eligible Installer status at any time while the
program is open. Once approved, Eligible Installers can apply for financial incentives for
PV Systems meeting the requirements of this Program.

2. GENERAL PROGRAM RULES - INCENTIVES
The following rules apply to the Program and the payment of incentives. Please read
them carefully, as they affect the eligibility of the PV System for cash incentives from
NYSERDA:
• Incentives are only available for PV Systems installed by an Eligible Installer.
• Incentives are paid directly to Eligible Installers, but must be passed on in the full
amount to the customer.
• Incentives will not be provided directly to customers purchasing or installing PV
Systems.
• Incentives are available for systems installed for qualified customers. Qualified
customers are those who pay the Renewable Portfolio Standard (RPS)/Systems
Benefits Charge (SBC) as part of their electricity bill.
• Incentives are only available for new equipment and PV Systems that have not
been installed (partially or completely) prior to NYSERDA approval of an
incentive application submitted in accordance with the terms and conditions of
this Program.
• Incentives are capped based on a PV System size that produces no greater than
110% of the demonstrated annual electric use (i.e. past electric bills) for the site.
All potential system output losses (kilowatt hours or kWh generated after all equipment
losses are applied) associated with shading, system orientation, tilt angle, etc., must be
analyzed and detailed for each PV System by the Eligible Installers. If your system is
shaded by trees, faces east or west, or is installed on a flat roof, the kWh output of your
PV System will be less than ideal. All impacts on system output must be quantified and
are considered during the review of applications submitted by the Eligible Installer.
Incentives are reduced in proportion to output losses when losses from factors such as
shading and orientation exceed 20% for a traditional PV System and 40% for building
integrated PV Systems.
NYSERDA’s Solar Electric Programs are designed to help develop and implement a
sustainable market for grid-connected solar electric or photovoltaic (PV) energy for all
applications. Whether you are interested in a solar electric system for your home,
business, school, or farm, NYSERDA has information and tools to help you make an
informed decision about investing in a solar electric system. For example, the Clean
Power Estimator is a great tool for evaluating the costs and benefits of a PV system. Once
you are ready to purchase a system, NYSERDA has financial incentives available to
qualified New York residents to help reduce installed system costs by nearly 50% if you
work with an eligible installer, NYSERDA also has programs to help develop and
implement technical training programs for system installers, utility and local inspectors,
and others to insure that your system is installed and operates reliably for many years.

3. Grid Connected Solar
Electric or
Photovoltaic (PV) Systems
NYSERDA
Photovoltaic (PV) programs are designed to develop and strengthen New York's supply
and service infrastructure, reduce barriers to installing PV, and build market demand for
PV. NYSERDA administers the New York Energy $martSM program, designed to
support certain public benefit programs during the transition to a more competitive
electricity market.
Grid-connected PV power offers consumers both economic and environmental
advantages. Where utility power is available, consumers can use a grid-connected PV
system to supply a portion of the power they need while using utility-generated power at
night and on very cloudy days. When the PV system supplies power to the grid as well as
to a specific building or piece of equipment, the utility becomes a storage device or
battery for PV-generated power.
Hundreds of homeowners and businesses in New York have grid-connected PV systems.
System owners like the fact that the system reduces the amount of electricity they
purchase from the utility each month. PV is also a clean and pollution-free energy source
that can reduce New York’s dependence on foreign sources of oil.
While residential, grid-connected PV systems (10 kilowatts or less) can provide most of a
home’s electric needs, they may also generate more electricity than needed. The
electricity generated by the PV system can be used on site or fed through a meter back
into the utility grid. For example, if a PV system is generating at near its rated output and
a system owner is on vacation or not home during the day, a system will typically be
producing more electricity than is needed for a given time period and that excess can be
“sold” back to the utility. At the end of the month, a credit for electricity sold is deducted
from charges for electricity purchased. Currently, New York utilities are only required to
buy back excess electricity from residential PV systems that are 10 kilowatts or less.
When a home or business requires more electricity than the grid-connected PV array is
generating (for example, in the evening), the need is automatically met by utility power.
A grid-connected PV system is connected to the utility system or grid through an
interconnection agreement with your utility company. The interconnection agreement sets
the terms and conditions under which a PV system can be safely connected to the grid
and outlines metering arrangements (net metering) for your PV system. Only grid
connected PV systems are eligible for financial incentives and assistance under
NYSERDA’s for PV incentive program.

4. That is because NYSERDA’s funding for the PV incentive program comes from a charge
on electricity sales assessed to people on the grid or utility system through the System
Benefit Charge. As a result, that funding can only be used for grid-connected PV
systems.
Grid-Connected PV System Costs
As of January 2005, just over 190 incentive reservations were approved under
NYSERDA's small PV incentive program. The small PV incentive program is a first-
come, first-served incentive program that provides incentives to customers through
eligible installers for utility interconnected (grid-tied) systems 50 kilowatts or less.
While the technology being installed is fairly standard and each system must meet all
NYSERDA program requirements, each individual system has to accommodate any
unique design or installation needs to meet customer demands, site conditions,
application requirements (roof or ground mounted), etc.
The chart below provides a summary of system sizes and costs (averages and ranges) for
systems installed under NYSERDA's PV incentive program to date. These figures should
be used as a guide. An eligible installer will be able to provide you with a specific cost
estimate based on your needs and requirements. Be sure to get at least three estimates
from three installers. The Clean Power Estimator is also a useful tool in getting more
information about typical system costs and benefits.
PV Systems for Homes* PV Systems for Businesses
4.5 kilowatts (kW) or 4,500
Average Size 9.7 kW or 9,700 watts
watts
Average Cost
$8,450 per kW or $7,990 per kW or
Before NYSERDA
$8.45 per watt $7.99 per watt
Incentive
$6,600 - $12,604 per kW or $6,373 - $9,674 per kW or
Cost Ranges
$6.60 - $12.60 per watt $6.37 - $9.67 per watt
*Includes ENERGY STAR homes
Funding Assistance
NYSERDA's solar electric Incentive Program and on-site wind Incentive Program
provide funding on a first-come, first-served basis. Customers must work through
Eligible PV Installers and Eligible Wind Installers who are responsible for submitting all
paperwork to NYSERDA and meeting all program requirements. Customers participating
in the on-site wind incentive program must use a Qualified Wind Generator.

5. NYSERDA also provides funding for many types of projects under a variety of programs.
Most of NYSERDA's programs provide funding through competitive solicitations or
Program Opportunity Notices (PONs). PONs include all the instructions, requirements,
and forms necessary to obtain funding under a program or initiative. All PONs are
available under Current or Upcoming. Look here for more opportunities for solar, wind,
other renewable, and energy efficiency funding.
PON 1050 Solar Electric Incentive Program
The Public Service Commission (PSC) issued an Order, effective October 28, 2008, to
reallocate funding to the Customer-Sited Tier of the Renewable Portfolio Standard. As
part of that Order, the PSC authorized $20.6 million for the solar photovoltaic (PV)
category.
More details regarding this can be found in the PSC's full Order.
WHAT IS THE SOLAR ELECTRIC INCENTIVE PROGRAM?
It’s an innovative program from the New York State Energy Research and Development
Authority (NYSERDA) that provides cash incentives for the installation of new Solar
Electric or Photovoltaic (PV) systems by Eligible Installers. Funding of approximately
$13.8 million in incentives, through 2009, for the Solar Electric Incentive Program
(“Program”) has been allocated by the New York State Renewable Portfolio Standard.
Additional funding may be made available based on customer demand and program
success. Incentives are granted on a first-come, first-served basis. Applications will be
accepted through December 31, 2009, or until funds are fully committed, whichever
comes first.
HOW DOES THE PROGRAM WORK?
The cash incentives are available for qualified systems and customers, through
applications submitted to the Program by an “Eligible Installer.” Eligible Installers are
those who have demonstrated technical competence in the PV field and who have signed
written agreements with NYSERDA to abide by certain Program terms and conditions.
The cash incentives are paid directly to the Eligible Installer, but must be passed on in
full to the customers. A list of all Eligible Installers is available at:
• http://www.powernaturally.org/includes/PVInstallers.aspx?t=pv
Eligible Installers are responsible for preparing and submitting all necessary incentive
paperwork to NYSERDA.
In general, incentives for a typical residential or commercial system cover approximately
40-45% of the installed cost of a PV System. For commercial systems, incentives may be
combined with loan assistance from NYSERDA through the NY Energy $mart Loan
FundSM to the extent available. Customers may also be eligible for New York State and
federal tax credits.

6. GENERAL PROGRAM RULES - INCENTIVES
The following rules apply to the Program and the payment of incentives. Please read
them carefully, as they affect the eligibility of the PV System for cash incentives from
NYSERDA:
• Incentives are only available for PV Systems installed by an Eligible Installer.
• Incentives are paid directly to Eligible Installers, but must be passed on in the full
amount to the customer.
• Incentives will not be provided directly to customers purchasing or installing PV
Systems.
• Incentives are available for systems installed for qualified customers. Qualified
customers are those who pay the Renewable Portfolio Standard (RPS)/Systems
Benefits Charge (SBC) as part of their electricity bill.
• Incentives are only available for new equipment and PV Systems that have not
been installed (partially or completely) prior to NYSERDA approval of an
incentive application submitted in accordance with the terms and conditions of
this Program.
• Incentives are capped based on a PV System size that produces no greater than
110% of the demonstrated annual electric use (i.e. past electric bills) for the site.
All potential system output losses (kilowatt hours or kWh generated after all equipment
losses are applied) associated with shading, system orientation, tilt angle, etc., must be
analyzed and detailed for each PV System by the Eligible Installers. If your system is
shaded by trees, faces east or west, or is installed on a flat roof, the kWh output of your
PV System will be less than ideal. All impacts on system output must be quantified and
are considered during the review of applications submitted by the Eligible Installer.
Incentives are reduced in proportion to output losses when losses from factors such as
shading and orientation exceed 20% for a traditional PV System and 40% for building
integrated PV Systems.
Disclaimer for Eligible PV Installers
NYSERDA's list of Eligible PV installers is based solely upon information provided by
Eligible Installers participating in NYSERDA PV incentive program (PON 1050).
NYSERDA and the State of New York make no representations as to the accuracy or
completeness of the information. Neither NYSERDA nor the State of New York: (1)
endorse any Eligible Installer listed; or (2) guaranty, warranty, or in any way represent or
assume liability for any work proposed or carried out by an Eligible Installer.
Additionally, NYSERDA is not responsible for assuring that the design, engineering and
construction of the project or installation of any PV system is proper or complies with
any particular laws (including patent laws), regulations, codes, or industry standards.
NYSERDA does not make any representations of any kind regarding the results to be
achieved by the PV systems or the adequacy or safety of such measures.

7. Important Program Features
Please take a few minutes to read the program summary presented below before
contacting an eligible installer about installing a photovoltaic (PV) or solar-electric
system under this program. It is important that consumers understand how the program
works and some of the key features of the program. Additionally, some important
program features that are worth noting include:
• Eligible Installers are only authorized to apply for incentives for eligible PV
systems for specific customers. Eligible Installers are authorized to proceed with
installations on a project by project basis.
• Incentives will not be approved for systems that have been partially or completely
installed before NYSERDA has approved an incentive application.
• NYSERDA must review and approve every application for a customer's PV
system submitted by an eligible installer. Although every effort is made to review
applications as quickly as possible, this process may take up to 30 days,
depending on the completeness of the application submitted as it relates to the
program terms and conditions. System installations under this program can not
begin until NYSERDA has informed the installer and customer that the system
has been approved, in writing. Also note that even though you may sign an
agreement with an eligible installer on a certain date, the approximate time period
of 30 days for review and approval begins when NYSERDA receives the
incentive application from the Eligible Installer. NYSERDA may reject an
application for incentives if it is received by NYSERDA more than 45 days from
the date of the customers execution of the customer purchase agreement.
It is important to select a PV installer like you would any other home improvement
contractor. Call at least three eligible installers for price quotes on comparable systems,
ask for customer references and check their references, ask about their insurance
coverage, and be sure that once you select an eligible installer you are familiar with the
program features summarized below so that you better understand the program steps and
timing considerations.
What Does It Mean to be Certified?
Certification for Solar PV Installers is a voluntary process offered by the North American
Board of Certified Energy Practitioners (NABCEP) to individuals who have met specific
qualifications.

8. To become NABCEP certified, the installer
- Must be at least 18 years of age
- Meet prerequisites of related experience and/or education
- Sign a code of ethics and standards of practice
- Pass a written exam
An installer is certified for three years. To maintain this professional designation,
certificants must meet continuing education requirements and install a specified number
of systems per year.
The NABCEP certification program has been developed and designed carefully following
professional credentialing guidelines. Standards, developed by experts in the field, have
been set and the eligibility requirements to become certified are based on extensive input
from installers and members of the solar industry.
Doing Business with NYSERDA
NYSERDA contracts with a variety of firms, individuals, institutions, and organizations
for engineering, scientific, technical, and other services for its R&D and deployment
programs. Our technical staff, comprising engineers, economists, biologists, physicists,
mathematicians, and other trained specialists, work closely with proposers to develop and
manage NYSERDA projects. NYSERDA's Director of Contract Management oversees
all contract activities.
Research Priorities
Project proposals should reflect the priorities in NYSERDA's multiyear research program
plan, Leading the Way in Energy Innovation: A Three-Year Startegic Outlook -
2007-2010 [2.9MB .pdf]. To obtain a copy of this plan, contact NYSERDA at (518)
862-1090, ext. 3272; fax (518) 862-1091.

9. New York
Incentives/Policies for Renewables & Efficiency
Solar and Fuel Cell Tax Credit
Last DSIRE Review: 05/27/2009
Incentive Type: Personal Tax Credit
State: New York
Eligible Solar Water Heat, Solar Space Heat, Photovoltaics, Fuel Cells
Renewable/Other
Technologies:
Applicable Sectors: Residential, Multi-Family Residential
Amount: 25% for solar-electric (PV) and solar-thermal systems; 20% for
fuel cells
Maximum Incentive: $5,000 for solar-energy systems; $1,500 for fuel cells
Carryover Provisions: Excess credit may be carried forward five years
Eligible System Size: 10 kW maximum for solar-electric systems*, except 50 kW for
solar systems owned by condominium or cooperative housing
associations;
25 kW maximum for fuel cells
Equipment/Installation Systems must be new and in compliance with all applicable
Requirements: performance and safety standards
Authority 1: NY CLS Tax, Article 22 § 606 (g-1) et seq.
Date Enacted: 08/02/1997 (solar electric)
Date Effective: 01/01/1998 (solar electric); 01/01/2003 (fuel cells); 01/01/2006
(solar thermal)

10. Enacted in August 1997, this personal income tax credit originally applied to expenditures on
solar-electric (PV) equipment used on residential property. The credit, equal to 25% percent of
the cost of equipment and installation, was expanded in August 2005 to include solar-thermal
equipment. The solar-thermal provisions apply to taxable years beginning on and after January
1, 2006.
The credit is capped at $3,750 for solar-energy systems placed in service before September 1,
2006, and capped at $5,000 for solar-energy systems placed in service on or after September 1,
2006.
Any amount of credit that exceeds a taxpayer's liability in a given tax year may be carried
forward for the five following taxable years. Any amount of the system cost provided by a grant
from any source is not eligible for this credit.
Solar-energy equipment is defined as "an arrangement or combination of components utilizing
solar radiation, which, when installed in a residence, produces energy designed to provide
heating, cooling, hot water or electricity." The credit may not be used for pool heating or other
recreational applications.
Systems must comply with the 10 kW capacity limit on residential, net-metered solar-energy
systems*. In 2007, legislation was passed increasing the capacity limit to 50 kW for
condominiums and cooperative housing associations. In addition, members of condominium
management associations and tenant stockholders of cooperative housing associations are now
allowed to claim a proportionate share of the total system expense towards the tax credit. These
changes take effect beginning in the 2007 tax year, but as with other portions of the tax credit,
they do not have an expiration date.
Fuel cells installed at a principal residence are eligible for a 20% tax credit, with a maximum
credit of $1,500. To qualify, fuel cells must provide a maximum rated baseload capacity of 25
kW and must utilize proton exchange membrane (PEM) technology.
*The language of the tax credit generally requires that PV systems conform to the state's net
metering law, thereby limiting system size to 10 kW. In August 2008, the state net metering law
was expanded by S.B. 7171 to permit net metering for residential PV systems up to 25 KW. It is
unclear at this point whether the state intends for the new net metering limits to apply to the tax
credit described above. The 2008 Solar and Fuel Cell Tax Credit Form IT-255 does not
specifically address this issue.
Contact:
Taxpayer Assistance - Personal Income Tax Information Center
New York State Department of Taxation and Finance
W.A. Harriman Campus
Albany, NY 12227
Phone: (518) 457-5181
Phone 2: (800) 225-5829 Web Site: http://www.tax.state.ny.us

11. New York
Incentives/Policies for Renewables & Efficiency
New York City - Property Tax Abatement for Photovoltaic (PV) Equipment Expenditures
Last DSIRE Review: 05/04/2009
Incentive Type: Property Tax Assessment
State: New York
Eligible Photovoltaics
Renewable/Other
Technologies:
Applicable Sectors: Commercial, Industrial, Residential, Nonprofit, Schools, Multi-
Family Residential, Institutional
Amount: Installed from August 5, 2008 to December 31, 2010: 8.75% of
system expenditures per year for 4 years (total of 35%);
Installed from January 1, 2011 to December 31, 2012: 5% of
system expenditures per year for 4 years (total of 20%)
Maximum Incentive: $62,500 annually or the amount of real property taxes owed
during a year
Terms: Systems must be located within a city with a population of at
least 1 million (i.e., New York City)
Web Site: http://www.nyc.gov/
html/dob/html/guides/green_roof_faq.shtml
Authority 1: NY CLS RPTL § 499-aaaa et seq.
Date Enacted: 08/05/2008
Date Effective: 08/05/2008
Expiration Date: 12/31/2012
Authority 2: Rules of the City of New York § 105-02
Date Effective: 03/12/2009

12. Summary:
In August 2008 the State of New York enacted legislation allowing a property tax abatement for
photovoltaic (PV) system expenditures made on buildings located in cities with a population of 1
million or more people. This essentially limits the abatement to systems installed within New York
City. Eligible buildings include all real property except utility real property.
The abatement allows building owners to deduct from their total real property taxes* a portion of the
expenditures associated with installing a PV system on an eligible building. Systems placed in
service between August 5, 2008 (the effective date) and December 31, 2010 are eligible for an
abatement of 8.75% of eligible expenditures annually for four years. Systems placed in service
between January 1, 2011 and December 31, 2012 are eligible for an abatement of 5.0% of eligible
expenditures annually for 4 years. Thus the total property tax benefit can amount to either 35% or
20% of the installed system cost depending on when it is built.
The maximum abatement during a year is $62,500 or the amount of real property taxes owed during
the year. Unused balances may not be carried forward to subsequent years. Eligible expenditures
include reasonable expenditures for materials and labor associated with planning, designing, and
installing the system. Expenditures incurred using a federal, state, or local grant are not eligible, nor
are interest or finance charges. However, the amount of eligible expenditures is not reduced by
federal, state or local tax credits, tax abatements, tax exemptions or tax rebates.
The abatement program is administered by the Department of Finance in cooperation with the
Department of Buildings. Applications for the abatement must be filed by March 15 in order to be
eligible for a tax credit during the year the application is submitted. Applications submitted after this
deadline can be applied to taxes owed for the following fiscal year. It is important to note that
claiming the abatement does not effect whether a building owner can claim New York's real property
tax exemption on the value added by solar, wind, and farm-based biogas energy systems.
*This incentive is similar to an investment tax credit for renewable energy systems, which are
frequently applied to personal or corporate income taxes. It is unique in that the tax benefits are
recouped through reduced property taxes on the host building instead of through reduced income
taxes.
Contact:
General Information - Solar & Green Roof Tax Abatements
New York City Department of Buildings
New York , NY 10007
E-Mail: greenroofandsolar@buildings.nyc.gov
Web Site: http://www.nyc.gov/html/dob/html/home/home.shtml

13. New York
Incentives/Policies for Renewables & Efficiency
Local Option - Solar, Wind & Biomass Energy Systems Exemption
Last DSIRE Review: 11/11/2009
Incentive Type: Property Tax Exemption
State: New York
Eligible Passive Solar Space Heat, Solar Water Heat, Solar Space Heat, Solar
Renewable/Other Thermal Electric, Solar Thermal Process Heat, Photovoltaics, Wind,
Technologies: Biomass, Solar Pool Heating, Daylighting, Anaerobic Digestion
Applicable Sectors: Commercial, Industrial, Residential, Agricultural
Amount: 100% of the assessed value attributable to the system
Terms: 15-year exemption
Web Site: http://www.orps.state.ny.us/
assessor/manuals/vol4/part1/section4.01/sec487.htm
Authority 1: NY CLS Real Property Tax, Article 4 § 487
Date Enacted: 1977; amended 1990, 2002, 2006
Date Effective: Before 7/1/88 or between 1/1/91 & 12/31/2010
Expiration Date: 12/31/2010
Authority 2: Exemption Handbook
Date Enacted: 11/06/2009

14. Summary:
Section 487 of the New York State Real Property Tax Law provides a 15-year real property tax
exemption for solar and wind energy systems constructed in New York State. As currently effective,
the law is a local option exemption, meaning that local governments are permitted decide whether or
not to allow it. The exemption was mandatory prior to a 1990 reenactment in which the local option
clause was added. The exemption is valid unless a government opts out of the exemption, as opposed
to the more common practice of requiring governments to "opt-in" in order to offer an exemption.
In September 2002, the property tax exemption was expanded (S.B 6592) to include farm-waste
energy systems, defined as systems and related equipment that generate electric energy from biogas
produced by the anaerobic digestion of agricultural waste -- such as livestock manure, farming waste.
The maximum rated system capacity for eligible farm-waste energy systems is 400 kilowatts (kW)
and systems must be connected to the electric grid and operated in accordance with the state's net
metering law (Public Service Law 66-j) in order to qualify. Senate Bill 5966A, enacted in July 2006,
extended the previous January 1, 2006 expiration date until January 1, 2011.
The exemption applies to systems that are (a) existing or constructed prior to July 1, 1988
(mandatory), or (b) constructed subsequent to January 1, 1991, and prior to January 1, 2011 (local
option). The law intends to encourage the installation of solar, wind and farm-waste energy
equipment systems and to ensure property owners that their real property taxes will not increase as a
result of the installation of these systems. The amount of the exemption is equal to the increase in
assessed value attributable to the solar, wind or farm-waste energy system. The definition of solar
includes passive solar heating systems such as mass wall and direct gain systems. In the case of solar
pool heating, solar energy collection, control, and distribution equipment is eligible; however, the
pool itself does not qualify as a storage medium or otherwise. The exemption applies only to general
municipal and school district taxes; it cannot be applied to special assessments or special ad valorem
levies.
With respect to systems constructed after January 1, 1991, and before January 1, 2011, each county,
city, town, village and school district (except the city school districts of New York, Buffalo,
Rochester, Syracuse and Yonkers) may choose whether to disallow the exemption. The option must
be exercised by counties, cities, towns and villages through adoption of a local law and by school
districts through adoption of a resolution. Click here for a list of local bodies that have opted not to
offer the exemption. Alternately, a local government is permitted to require the property owner to
enter into a contract for payments in lieu of taxes, not to exceed the amount payable without the
exemption.
Eligibility definitions and guidelines solar, wind-energy, and farm waste energy equipment have been
issued by the New York State Research and Development Authority (NYSERDA) and are available
above or on the program website.

15. Contact:
Public Information Officer
Office of Real Property Services
16 Sheridan Avenue
Albany, NY 12210-2714
Phone: (518) 474-2982
Phone 2: (518) 486-5446
Fax: (518) 474-9276
E-Mail: nysorps@orps.state.ny.us
Web Site: http://www.orps.state.ny.us/
When you install a solar panel system, you are likely eligible to receive cash rebates from
NYSERDA -
your state, and energy tax credits from the U.S. Treasury IRS.
Solar Power PV Incentive Program
Rebate Type Amount
Solar Power Installation
$3,000 to $5,000 per kW installed, up to 10kW.
Rebate
Property Tax Exclusion 100% of system value for 15 years, except for New York City (see
below)
Sales Tax Exemption 100% of system sales tax
State Tax Credit 25% of installed cost, up to $5,000
Incentive Type: New York State Solar Power Rebate Program
Eligible Solar Power Photovoltaics
Renewable
Technologies:
Applicable Commercial, Industrial, Residential, Nonprofit, Schools, Local Government,
Sectors: State Government, Institutional, (Must be customer of investor-owned utility in

16. NY)
Incentive $3-$5/watt DC, varies by sector, installed capacity, and system type;
Amount: Incentive may be reduced for potential production losses associated with
shading, system orientation, tilt angle, and other factors
Eligible System No maximum size restriction, but residential incentives are capped at 10 kW
Size: and non-residential incentives are capped at 50 kW per site/meter. Systems may
not exceed 110% of demonstrated energy demand.
Equipment Systems must be new, UL-listed, and compliant with all applicable
Requirements: performance and safety standards; minimum five-year warranty on all
equipment and two-year warranty on battery back-up systems.
Installation Installation must comply with all federal, state and local codes; must be grid-
Requirements: connected and installed by a pre-approved contractor; must comply with New
York's Standard Interconnection Requirements
Program Budget: $38.8 million (2008-2009)*
Ownership of NYSERDA for first 3 years of system operation, thereafter customer/generator
Renewable
Energy Credits:
Funding Source: RPS surcharge
Project Systems may be inspected by NYSERDA and/or other authorities having
Certification jurisdiction; Performance monitoring and data reporting required for first 3
years of system operation
Expiration Date: 09/30/2009
Website: http://www.powernaturally.org/Programs/Solar/incentives.asp
The New York State Energy Research and Development Authority (NYSERDA) provides incentives
of $3 to $5 per watt (DC) to eligible installers for the installation of approved, grid-connected
photovoltaic (PV) systems. The maximum capacity supported by the program is 50 kW for non-
residential systems and 10 kW for residential systems. Larger systems are permitted, but incentives
are based on these capacity caps. Incentives are only available to eligible installers, and incentives
must be passed on to customers. Once eligible, installers reserve incentives for approved systems, for
specific customers, on a first-come, first-served basis for as long as funds are available.
During 2008 and 2009, this program will provide $38.8 million in funding for PV systems.* The
program continuously accepts applications from installers who seek to participate. The goal is to
increase the network of eligible installers across the state, offering customers a choice of qualified or
certified installers in their area.
Installer eligibility will be determined and maintained based on factors such as acceptance of all

17. program terms and conditions, training, installation experience, track record related to utility
interconnections, overall performance, monitoring, customer references, customer satisfaction, and
commitment to become certified through a national certification program. NYSERDA is providing
accredited training opportunities for PV installers to the greatest extent possible. Training
opportunities are posted at www.powernaturally.org. The program web site (listed above) provides a
list of eligible installers. There are currently approximately 75 installers on the list.
Program incentives effective January 29, 2008, based on direct-current (DC) module ratings at
standard test conditions, are as follows:
Residential Incentives
R $4.00/W up to 5 kW
$4.50/W for New York Energy Star homes up to 5 kW
$4.50/W for all building integrated PV systems up to 5
$ For additional capacity above 5 kW, all residential incentives will be reduced by $1.00/watt and
all residential incentives will be capped at 10 kW.
New York Solar Sales Tax Exemption
Incentive Type: Sales Tax Exemption
Eligible Renewable Passive Solar Space Heat, Solar Water Heat, Solar Space Heat,
Technologies: Photovoltaics
Applicable Sectors: Residential
Amount: 100% Exemption
New York enacted legislation in July 2005 exempting the sale and installation of
residential solar-energy systems from the state's sales and compensating use taxes. The
exemption applies to solar-energy systems that utilize solar radiation to produce energy
designed to provide heating, cooling, hot water and/or electricity. The exemption does
not apply to solar pool heating or other recreational applications. There does not appear
to be an expiration date* for this incentive.
The law allows municipalities the option of granting the local exemption. If a city with a
population of 1 million or more chooses to grant the local exemption, it must enact a
specific resolution that appears in the state law. The New York Department of Taxation
and Finance publishes a variety of sales tax reports detailing local tax rates and
exemptions, including those for solar energy equipment. The solar sales tax list is
updated several times per year.
New York Local Property Tax Option - Solar, Wind & Biomass Energy Systems
Exemption
Incentive Property Tax Exemption

18. Type:
Eligible
Solar Water Heat, Solar Space Heat, Solar Thermal Electric, Solar Thermal Process
Renewable
Heat, Photovoltaics, Wind, Biomass, Daylighting, Anaerobic Digestion
Technologies:
Applicable
Commercial, Industrial, Residential, Agricultural
Sectors:
Terms: 15-year exemption
Website: http://www.orps.state.ny.us/assessor/manuals/vol4/part1/section4.01/sec487.htm
Effective
Before 7/1/88 or between 1/1/91 & 12/31/2010
Date:
Expiration
12/31/2010
Date:
Section 487 of the New York State Real Property Tax Law provides a 15-year real
property tax exemption for solar and wind energy systems constructed in New York
State. As currently effective, the law is a local option exemption, meaning that local
governments are permitted decide whether or not to allow it. The exemption was
mandatory prior to a 1990 reenactment in which the local option clause was added. The
exemption is valid unless a government opts out of the exemption, as opposed to the
more common practice of requiring governments to "opt-in" in order to offer an
exemption.
New York Solar and Fuel Cell Tax Credit
Incentive Type: Personal Tax Credit
Eligible Renewable Solar Water Heat, Solar Space Heat, Photovoltaics, Fuel Cells
Technologies:
Applicable Sectors: Residential, Multi-Family Residential
25% for solar-electric (PV) and solar-thermal systems; 20% for
Amount:
fuel cells
Maximum Incentive: $5,000 for solar-energy systems; $1,500 for fuel cells
Carryover Provisions: Excess credit may be carried forward five years
Eligible System Size: 10 kW maximum for solar-electric systems*, except 50 kW for
solar systems owned by condominium or cooperative housing
associations;
25 kW maximum for fuel cells

19. Equipment/Installation Systems must be new and in compliance with all applicable
Requirements: performance and safety standards
Enacted in August 1997, this personal income tax credit originally applied to expenditures on solar-
electric (PV) equipment used on residential property. The credit, equal to 25% percent of the cost of
equipment and installation, was expanded in August 2005 to include solar-thermal equipment. The
solar-thermal provisions apply to taxable years beginning on and after January 1, 2006.
The credit is capped at $3,750 for solar-energy systems placed in service before September 1, 2006,
and capped at $5,000 for solar-energy systems placed in service on or after September 1, 2006.
Any amount of credit that exceeds a taxpayer's liability in a given tax year may be carried forward for
the five following taxable years. Any amount of the system cost provided by a grant from any source
is not eligible for this credit.
Solar-energy equipment is defined as "an arrangement or combination of components utilizing solar
radiation, which, when installed in a residence, produces energy designed to provide heating, cooling,
hot water or electricity." The credit may not be used for pool heating or other recreational
applications.
Systems must comply with the 10 kW capacity limit on residential, net-metered solar-energy
systems*. In 2007, legislation was passed increasing the capacity limit to 50 kW for condominiums
and cooperative housing associations. In addition, members of condominium management
associations and tenant stockholders of cooperative housing associations are now allowed to claim a
proportionate share of the total system expense towards the tax credit. These changes are valid for the
Jan. 1, 2007 tax year.
Fuel cells installed at a principal residence are eligible for a 20% tax credit, with a maximum credit of
$1,500. To qualify, fuel cells must provide a maximum rated baseload capacity of 25 kW and must
utilize proton exchange membrane (PEM) technology.
New York City - Property Tax Abatement for Photovoltaic (PV) Equipment
Expenditures
Incentive Type: Property Tax Assessment
Eligible Renewable Photovoltaics
Technologies:
Applicable Sectors: Commercial, Industrial, Residential, Nonprofit, Schools, Multi-Family
Residential, Institutional
Amount: Installed from August 8, 2008 to December 31, 2010: 8.75% of system
expenditures per year for 4 years (total of 35%);

20. Installed from January 1, 2011 to December 31, 2012: 5% of system
expenditures per year for 4 years (total of 20%)
$62,500 annually or the amount of real property taxes owed during a
Maximum Incentive:
year
Effective Date: 08/08/2008
In August 2008 the State of New York enacted legislation allowing property tax abatements for
photovoltaic (PV) system expenditures made on buildings located in cities with a population of 1
million or more people. This essentially limits the abatement to systems installed within New York
City. Eligible buildings include all real property except utility real property.
The abatement allows building owners to deduct from their total real property taxes* a portion of the
expenditures associated with installing a PV system on an eligible building. Systems placed in service
between August 8, 2008 (the effective date) and December 31, 2010 are eligible for an abatement of
8.75% of eligible expenditures annually for four years. Systems placed in service between January 1,
2011 and December 31, 2012 are eligible for an abatement of 5.0% of eligible expenditures annually
for 4 years. Thus the total property tax benefit can amount to either 35% or 20% of the installed
system cost depending on when it is built.
The maximum abatement during a year is $62,500 or the amount of real property taxes owed during
the year. Unused balances may not be carried forward to subsequent years. Eligible expenditures
include reasonable expenditures for materials and labor associated with planning, designing, and
installing the system. Expenditures incurred using a federal, state, or local grant are not eligible, nor
are interest or finance charges.
The U.S. Treasury allows Energy Tax Credits for homeowners and
business owners. Taxpayers are allowed one tax credit equal to 30 percent of
the qualified investment in solar panels, and another equivalent 30% credit
for investing in a solar water heating system.