Solar 101 for Multifamily

Solar lowers your building’s electric bill.

By reducing the electricity you get from the grid, installing solar on your property lowers your bill. There may also be significant federal and local tax credits for installing solar at your building.

Solar shows your community you care.

More and more renters and community members are attracted to buildings with a commitment to sustainability. By demonstrating your building’s commitment to going green through clean, locally produced solar power, you bolster your reputation and potentially attract new renters who value sustainability.

Solar is healthier and better for the environment.

Solar is one of the cleanest forms of renewable energy. By switching to solar, you reduce your building’s carbon footprint and help New York fight climate change. Solar also reduces the presence of harmful air pollutants that may cause health problems. Ultimately, by going solar, you are contributing to a cleaner and healthier community.

Your building will be compensated for the solar it produces.

With solar, your building can go from being an energy consumer to becoming an energy producer. How your building is compensated for solar energy is dependent on whether the power you use is from an onsite or offsite array.

If your solar project is onsite, you use the electricity produced by your solar panels. Electric utilities will then credit your bill for the excess power your business provides to the grid (though you may still have to pay other charges and fees).

If your solar panels are offsite – either through a power purchase agreement or community solar subscription your business receives credits on its electric bill for the power the panels provide to the grid. The credit may be calculated as a dollar amount or kilowatt-hours.

Ask your contractor about how compensation will work for your business.

How does solar energy work?

Solar panels convert the infinite energy of the sun into electricity—even on cloudy days. Unlike power generated by fossil fuels, solar energy does not create noise or air and water pollution. Solar panels, which are made up of photovoltaic (PV) cells, convert sunlight into direct current (DC) electricity throughout the day. Since most buildings and homes in the United States run on alternating current (AC) electricity, the DC electricity generated by solar panels is then converted into AC electricity through inverters. You can use the converted electricity to power your building. You will be compensated for providing power to the grid when you are producing more electricity than your building uses.

How do solar panels work?

PV cells allow light particles, or photons, to knock electrons free from atoms. This process generates electricity, a form of power you can use just about anywhere.

Will my building still be connected to the grid?

When you go solar, you will still be connected to the grid. This allows you to draw power from the grid when your building needs more electricity than your system is producing. Staying connected to the grid also allows you to be compensated for providing power to the grid when your building is producing more electricity than it needs.

You may also consider installing energy storage technologies, which would enable your building to store the excess energy produced for use when needed. Storing excess energy that your system produces allows you to be less reliant on the grid. This stored energy can also be used during the event of a power loss, creating greater resiliency for your building and tenants. If you are interested in learning more about energy storage, check out our Energy Storage Program.

Where is solar being installed in New York?

Visit this interactive map to see how many systems have been installed near you. You can also find local community solar projects.

Where can I learn more about solar terms and technologies?

If you are interested in learning more about how solar works, we encourage you to visit U.S. DOE Solar Website .

Install solar on your roof or property.

You can install solar on the roof or in the ground on your property. The solar panels would help meet the building’s energy needs, but your electric utility would continue to provide energy at night, on cloudy days, or when the building’s energy demand is too high for the solar panels to support.

The monetary savings are distributed depending on whether the building has one electricity meter (often called a master metered building) or multiple meters (for example, separate meters for common areas and tenants). When the solar panels generate more electricity than the building is using, the excess energy is sent back to the grid and is then reflected as bill savings in the form of credits on your electric utility bill. Working with a solar contractor will help you determine how to best install solar, so you and your tenants receive the most benefits.

Sign up for off-site solar.

If installing solar is not a good fit for your multifamily building’s roof or property, you can access clean energy through community solar or, in some cases, remote crediting.

Community solar is a large array of solar panels at an offsite location that allows you to access the benefits of solar and save money without installing solar panels on your roof or property. You can subscribe to a community solar project and receive credits on your electric utility bill for the energy produced by the project. Both master meters and individual meters can connect to one community solar project. Get more information about community solar.

Through remote crediting, larger buildings may be able to have an entire off-site solar project dedicated to their energy needs. Working with a solar developer will help you determine whether community solar or remote crediting is best for your building.

Are there any restrictions on the meter type and a community solar project?

Yes. Electricity meters over 25 kW (often called demand-metered accounts) can offtake a maximum of 40% of a community solar project’s generation capacity. Electricity meters below 25 kW (non-demand meters) can offtake their entire demand. This is to ensure that a community solar project is benefiting as many subscribers as possible. Additionally, a community solar project must have at least 10 subscribers (excluding projects sited on master metered multifamily buildings with at least 10 residential units).

Can one building or electricity meter take the entire capacity of a community solar project?

Yes. If a master metered multifamily building has at least 10 residential units, then it may take the entire capacity of a community solar project. Alternatively, a multifamily building can subscribe to a remote crediting project and take the entire capacity of that project, regardless of the building's size. Remote crediting and community solar offer the same service, but there are three main differences:

• the number of subscribers allowed: remote crediting projects cannot have more than 10 subscribers, whereas community solar projects must have a minimum of 10 subscribers (excluding projects sited on master metered multifamily buildings with at least 10 residential units).
• the ability to have on-site solar: customers may have on-site solar and subscribe to a remote crediting project, however, customers cannot have on-site solar and subscribe to a community solar project.
• the ability to subscribe to multiple projects: remote crediting subscribers may participate in multiple remote crediting projects, but community solar subscribers can only participate in one community solar project at a time. Customers subscribed to a remote crediting project cannot also participate in a community solar project, and vice versa.

• Conduct a self-assessment of your building—especially the condition of your roof—to see if it is a good fit for solar. Solar panels should not be installed on old or damaged roofs. If your roof has visible damage, such as cracked or missing singles, you should ask your contractor if you will need to repair the roof before installing solar.
• Review our tips and pointers for finding and preparing for a contractor.
• Use our search tool to find a participating NY-Sun contractor near you

What financial support is available to help my building pay for solar?

In New York State, multifamily buildings can take advantage of upfront incentives from NY-Sun, various federal and/or State tax credits, and options for low-interest financing to get financial support for their solar projects.

What is the average installed cost for solar?

The cost will depend on your system’s size, site conditions, equipment selected, and method of payment. The cost is typically described in $/Watt and is dependent upon the size and the location of the project.

In the ConEdison region:

• Residential (single-family) costs approx. $4.40/W ($18,000 - $35,000 before incentives)
• Multifamily/Small-Commercial costs approx. $4.30/W

In the Upstate region:

• Residential (single-family) costs approx. $3.50/W ($16,000 - $45,000 before incentives)
• Multifamily/Small-Commercial costs approx. $2.65/W

Be sure to check references and get a few price quotes from participating contractors to determine the cost and payment option that is the best fit for your building. NY-Sun also offers financing options and incentives for multifamily properties looking to go solar.

What are my options to pay for solar?

There are three popular ways for multifamily properties to pay for solar: leases, power purchase agreements (PPAs), and loans. Discuss your options with your contractor to learn more.

If my building installs solar, will our property taxes increase?

In most areas of New York State, you will be eligible for a 15-year tax exemption for your renewable energy system. However, some local governments and municipalities have opted out of this exemption. To find out if your municipality has opted out, you can review this list or call your local tax assessor’s office.

Instead of the tax exemption, property owners in New York City who go solar may apply for the Real Property Tax Abatement Program. Visit the NYC Department of Buildings to download the PTA4 form and PTA4 instructions to get more information on the city’s solar installations.