{"id":11689,"date":"2024-01-08T23:38:54","date_gmt":"2024-01-08T23:38:54","guid":{"rendered":"https:\/\/www.solar.com\/learn\/?p=11689"},"modified":"2024-01-08T23:47:06","modified_gmt":"2024-01-08T23:47:06","slug":"nyc-embraces-residential-solar-power-with-groundbreaking-policies","status":"publish","type":"post","link":"https:\/\/www.solar.com\/learn\/nyc-embraces-residential-solar-power-with-groundbreaking-policies\/","title":{"rendered":"NYC Embraces Residential Solar Power in 2024 with Groundbreaking Policies"},"content":{"rendered":"

With residential solar incentives eroding across the country, New York City is one of the few places in the US getting more <\/em>solar-friendly in 2024 thanks to new zoning regulations and a huge upgrade to the city\u2019s solar property tax abatement.<\/p>\n

We get it \u2013 tax abatements and zoning regulations aren\u2019t the sexiest topics in the world. But for NYC homeowners, they provide thousands of dollars in additional solar incentives and open up cast amounts of real estate for installing panels.<\/p>\n

So, we checked in with T.R. Ludwig, CEO and Founder of Brooklyn SolarWorks and Brooklyn Solar Canopy Co., to see what\u2019s new in New York City and what else is on the horizon.<\/p>\n

What\u2019s new with the NYC Solar Property Tax Abatement?<\/h2>\n

Beginning in 2024, the NYC Solar Property Tax Abatement (PTA) will be worth 30% of the installed cost of a residential solar and\/or battery system, including solar carports. Previously, the abatement was worth 20% and did not apply to battery storage or carports. The PTA was also extended through 2035<\/a>, providing property owners and the solar industry a sense of stability for this unique incentive.<\/p>\n

Unlike a property tax exemption, which reduces a property\u2019s assessed value, the abatement works as a credit<\/a> against the solar owner\u2019s property taxes. For a $25,000 solar system, the 30% abatement is worth $1,875 per year for four years, for a total incentive of $7,500.<\/p>\n

For reference, at 20% the abatement would be worth a total of $5,000 for a $25,000 system.<\/p>\n\n\n\n\n\n\n\n\n\n
<\/td>\n20% abatement (installed before 2024)<\/td>\n30% abatement (installed 2024-2035)<\/td>\n<\/tr>\n
System cost<\/td>\n$25,000<\/td>\n$25,000<\/td>\n<\/tr>\n
Year 1 credit<\/td>\n$1,250<\/td>\n$1,875<\/td>\n<\/tr>\n
Year 2 credit<\/td>\n$1,250<\/td>\n$1,875<\/td>\n<\/tr>\n
Year 3 credit<\/td>\n$1,250<\/td>\n$1,875<\/td>\n<\/tr>\n
Year 4\u00a0credit<\/td>\n$1,250<\/td>\n$1,875<\/td>\n<\/tr>\n
Total property tax abatement<\/td>\n$5,000<\/td>\n$7,500<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The PTA can also be combined with other state and local incentives in New York <\/a>to substantially reduce the cost of installing solar and battery systems (as we’ll explore below<\/a>).<\/p>\n

\"TR<\/p>\n

While the abatement only applies to the five boroughs of New York City, extending and upgrading the PTA required approval from both city and <\/em>state government bodies, including a signature from Governor Kathy Hochul. As Treasurer of NYSEIA, Ludwig helped lead a ground-up effort to increase the PTA\u2019s benefits and is already seeing positive impacts.<\/p>\n

\u201cThis was no small feat \u2013 the 10% increase is huge and we created the same 10-year term as the federal solar tax credit,\u201d Ludwig said. \u201cIt\u2019s created a lot of interest and fervor in the market, and we\u2019re already seeing other companies moving into New York City in a meaningful way.\u201d<\/p>\n

What do New York City\u2019s updated zoning regulations mean for residential solar?<\/h2>\n

In December 2023, New York City passed the \u201cCity of Yes\u201d zoning initiatives, including an amendment that relaxes zoning restrictions for residential solar installations and opens up vast amounts of real estate for residential installations.<\/p>\n

\u201cThe main difference for rooftop solar is there were a lot of \u2018no-go\u2019 zones on a roof \u2013 most only flat roofs \u2013 where you couldn\u2019t put panels or have them visible from the street,\u201d Ludwig said. \u201cThat restricted solar system sizes quite a bit.\u201d<\/p>\n

The new zoning regulations<\/a> abolish these restrictive setbacks and also allow solar panels to be used as accessory structures (aka canopies) over flat roofs, driveways, and backyards. By elevating solar panels above obstructions and fire access, canopies allow homeowners to access more roof space and build larger systems. Canopies also open up opportunities on the ground, such as NYC\u2019s 8,500 acres of parking lots<\/a>.<\/p>\n

\"solar<\/p>\n

\u201cAbout half of Queens couldn\u2019t do canopies because of zoning laws, now they can. Same with Brooklyn,\u201d Ludwig said.<\/p>\n

For property owners, more space for panels means greater opportunities for energy cost savings in an era of rapidly rising utility rates<\/a> and electricity demand from electric vehicles and heat pumps.<\/p>\n

\u201cIt essentially enables more electrification,\u201d Ludwig said. \u201cEven if someone already has panels on their roof, if they get an EV or heat pump and their load goes up, they can squeeze in more panels as a carport \u2013 literally park your EV under the panels that charge it.\u201d<\/p>\n

\"a<\/h2>\n

A solar canopy installed in Park Slope by Brooklyn Solar Canopy Co. raises the panels above obstructions and fire lanes.<\/span><\/p>\n

<\/a>Is solar worth it in New York City?<\/h2>\n

Thanks to high electricity prices and robust incentives at the federal, state, and local levels, New Yorkers can drastically reduce their electricity costs with solar panels. In addition to the new policies from NYC, residential solar systems may also qualify for:<\/p>\n