Will New Yorkers Get a $10K Boost to Their Solar Tax Credit?
March 27, 2024
New York’s solar industry could see a big boom coming its way.
A newly-proposed bill aims to double the existing Solar Tax Credit, potentially increasing the financial incentive for homeowners to invest in solar energy from $5,000 to an unprecedented $10,000. That’s a massive step up when it comes to affordability for the average NY household.
New York’s Current Solar Tax Credit
Even now, the state’s solar tax credit program is generous. Since 2006, New York State has allowed homeowners installing solar systems to offset 25% of the installation cost against their state income taxes, up to a maximum of $5,000.
While this incentive has helped New York become one of America’s leaders in renewable energy, growing power demands and environmental concerns call for more robust measures.
S3596B Could Dramatically Increase Solar Adoption
This March we saw the introduction of Senate Bill S3596B, a legislative proposal that promises to double the existing cap on the Solar Tax Credit to $10,000 while retaining the credit’s structure at 25% of the installed system cost. This adjustment could drastically lower the financial barrier to solar adoption for many New Yorkers, making it easier for more to make the investment.
The bill directly addresses the upfront cost concerns that deter many homeowners from going solar. By increasing the potential tax credit, the bill effectively reduces the net installation cost, shortening the payback period and enhancing the financial returns of solar investments.
However, S3596B must navigate the legislative process successfully if it is ever to become law. Currently stationed at the Senate Committee on Budget and Revenue, the bill must undergo scrutiny and garner sufficient support before it can advance to the Senate floor for a vote. If approved, it would then proceed to the Assembly and, ultimately, require the Governor’s signature to become law.
Given New York’s progressive track record on environmental issues, the bill’s alignment with existing state goals, and the increasing public and political awareness of the urgency of climate action, S3596B has a reasonable chance of success. Although, we can expect the fiscal impact of increasing the solar tax credit to $10,000 to be scrutinized, especially in terms of its effect on the state budget. The bill’s supporters will need to effectively argue that the long-term benefits, including job creation in the renewable energy sector and reduced carbon emissions, outweigh the short-term fiscal costs of expanding the tax credit.
Finding More Qualified Solar Appointments
Doubling of the Solar Tax Credit is anticipated would majorly boost demand for solar installations in New York, giving contractors a new flush of revenue. But while we wait, what can installers do to increase their sales?
Grid Freedom can bridge the gap between New York’s solar contractors and the growing market of potential customers. With its established lead generation and screening platform, the agency connects contractors with homeowners who are confirmed ready to go solar now.
All leads are delivered with their first solar appointments already scheduled, making it easy for contractors to cut straight to the sale. No subscriptions, quantity restrictions, or other fine-print requirements.