Choosing a Contractor

The more you learn about solar, the better prepared you will be to have an informed conversation with a contractor. To learn more about the basics of solar energy, visit our Solar 101 for Business page.

We recommend asking three commercial contractors that work in your area for proposals.

When shopping around for proposals, you will need to tell the contractor how much your business currently pays for electricity, including all fees and taxes. You will also need to give the contractor a year’s worth of your business’s electricity usage data to determine the system size. This information can usually be found on your most recent electric bill.

• Take time to carefully review and compare the proposals. For example, your proposals may include options for your business to purchase or lease solar panels, options for a power purchase agreement (PPA), and options for financing.
• If it is not already included in the proposal, be sure to discuss who is responsible for obtaining and paying for any permits, inspections, and approvals before you sign.
• Double check to make sure that all numbers used in the proposal are accurate. If your proposal mentions any tax credits, we recommend having an accountant or tax professional verify that you are eligible for them.
• This is also a good time to look into whether installing solar will affect your property taxes. Although New York State tax law (RPTL 487) provides a 15-year property tax exemption for renewable energy systems, some municipalities have opted out of the exemption, meaning businesses who install solar in those towns may have to pay additional property taxes. To determine if your municipality has opted out of RPTL 487, call your local tax assessor's office or review this list of municipalities that have opted out.
• If you are working with an accountant or tax professional to calculate your potential tax credits, they can help you look into any changes that may occur to your property taxes after your solar installation.

Once you have decided which commercial contractor you want to work with, your contractor will handle the vast majority of the project work for you. We recommend having regular contact with your contractor so you can stay informed about how your business’s project is moving forward.

Here are some of the things you should expect from your contractor once you have selected one to work with:

• A customer purchase/lease agreement addendum, an important document that is designed to protect you, the customer.
• A copy of your project’s NY-Sun incentive application for your records. Please note that your contractor must file the incentive application on your behalf.
• A commercial energy assessment. Commercial customers are encouraged, but not required, to complete any additional energy efficiency upgrades recommended by their participating contractor. These additional energy upgrades are intended to make sure your business and solar panels are operating as efficiently as possible.

Your contractor will be notified directly by NY-Sun whether your business’s incentive application was approved or denied. Your contractor will then notify you about the status of your application.

• A notice of approval will specify the incentive amount for your business’s project and a required timeline for finishing the project. Small to medium-sized projects must be completed within 12 months from the day of NY-Sun approval. Large projects must be completed within 30 months from the day of NY-Sun approval (the size of a project is based on energy capacity, not the size of a site or property.)
• A notice of denial will include the reasons why your application was not approved, allowing you and your contractor to make corrections and resubmit.
• All projects must be completed within 365 days from the date of NY-Sun approval. We recommend that you help your contractor keep track of this deadline to avoid having your incentive canceled. NY-Sun occasionally grants extensions on a case-by-case basis.

Once your incentive application has been approved, your contractor should start scheduling your installation.

After your installation is complete, your contractor will set up a required inspection by your municipality and your system’s interconnection to the grid. Please note, these steps may take some time due to the popularity of solar for commercial properties in New York State.

Once your system is up and running and your contractor has completed all the necessary paperwork, you can start powering your business with clean energy from the sun!