Paying for Solar

Using a combination of incentives, tax credits, and low-interest financing can make your business’s solar project more affordable.

Step 1: Work With Your Contractor to Get Incentives

NY-Sun will give your business an incentive through your contractor to lower your solar project’s price tag. In most cases, your contractor will take the incentive amount “right off the top” of your bill, so you won’t have to pay the full price upfront or worry about applying for a rebate later. The incentive amount a solar contractor receives through NY-Sun must be disclosed in the customer contract.

The exact incentive amount depends on project size and location. Incentives are structured to phase out over time as more New York homes and businesses install solar, and the market becomes more robust. Work with a NY-Sun contractor to find out what incentives your business may be eligible for.

Additional Incentives Available for Solar & Energy Storage

Businesses that integrate energy storage with their solar project may be eligible for additional energy storage incentives on top of NY-Sun solar incentives. To learn more about adding energy storage to your solar project, visit NYSERDA’s Energy Storage program.

Step 2: Explore Loans as Needed

NY-Sun partners with private-sector financial institutions to provide low-interest financing for small and large businesses, as well as not-for-profit organizations. In some cases, the amount of money you save on your monthly electric bill by installing solar can be enough to pay for your loan.

• Small Business & Not-for-Profit On-Bill Recovery Loans make it simpler to pay for solar by adding your loan payment to your monthly electric bill. If you decide to move your business to a new location, the unpaid balance of the loan can easily be transferred to the new property owners.
• Small Commercial Participation Loans give small businesses and not-for-profit organizations up to $100,000 in financing at a below-market interest rate with flexible repayment periods. Unlike On-Bill Recovery Loans, these loans have traditional monthly payment installments that remain separate from your electric bill.
• EIC OPEN C-PACE provides long-term alternative financing for clean energy projects at commercial and industrial buildings. EIC is a New York State non-profit, local development corporation that operates EIC OPEN C-PACE on behalf of any New York municipalities that opt into the program.

Step 3: File for Tax Credits

In addition to incentives and low-interest financing to help your business pay for solar, there are tax credits available for businesses that install solar through New York State and the Inflation Reduction Act.

The owner of a qualified solar installation can file for federal tax credits and accelerated depreciation on the cost of the installation, helping your business maintain a healthy cash flow even while you upgrade your facilities. In some financing arrangements, these benefits are taken by the contractor, and in others, they can be taken by the building or business owner. As a business installing solar, be sure to discuss tax credits for your project with your solar contractor and consult with your tax advisor.

Here are the most commonly used forms and instructions for requesting commercial clean energy tax credits:

• Commercial Depreciation Allowance - Gives businesses a federal tax credit to help recover the cost of business or income-producing property (such as your solar panels!) through deductions for depreciation.
• Inflation Reduction Act Tax Credit - New York businesses may be eligible for an Inflation Reduction Act (IRA) tax credit from the federal government. The IRA can give businesses a tax credit for up to 30% of their solar project cost, plus bonus credits if serving low-income customers, located in a designated energy community, or using domestic content in the project.
• New York State Real Property Tax Exemption - Sometimes installing solar can increase your business’s property value. To avoid having to pay additional property taxes based on the value you added to your commercial property by installing solar, you can file this form with your local property assessor. Note: Some municipalities and school districts have opted out and will still include the value of the solar installation in your property tax assessment without the exemption.
• New York City Real Property Tax Abatement Program - If your business is in New York City, ask your contractor about the New York City Real Property Abatement Program, which New York City offers instead of the New York State Real Property Tax Exemption (see above). Be sure to confirm your contractor’s process for submitting and handling the appropriate forms, as some contractors may do it on your behalf.