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New York Solar PV Guide
Solar technology, financing programs, and everything you need to know to drive your investment decision
New York has one of the highest electric cost / kWh in the continental U.S.– $0.154 / kWh average for all sectors in New York versus $0.112 / kWh for PV
Solar technologies are established & continue to be improved upon– Cost of entire system is on decline, efficiencies are increasing
NY-Sun Initiative committed ~$1 Billion in 2014 for new installs– Grants, Incentives, and Financing programs allow for more accessibility to solar– As more Megawatts of solar are installed, each new install will receive
savings per watt installed (Megawatt Block Incentive)• The sooner you decide to install, the more upfront savings you will realize
Residential, Commercial, Industrial, Communities, Government, and Installers / Contractors can all benefit from solar
– Installs of ≤ 200 Kilowatt will typically have ~20-30% of upfront costs covered
PACE financing and other groups can finance for $0 upfront cost to building owner
Now Is The Time To Invest In Solar
(*) http://www.eia.govGraph source: http://energy.gov
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Solar PV systems absorb sunlight, convert energy from
the sun into electricity
– Can be installed on roofs or ground
– Most efficient when panels are South facing
– Will still absorb in winter months and cloudy days
Inverter changes power from DC to AC
Connects to utility electric meter and the grid
Smart technologies can give real time readouts,
change angle of panels for maximum absorption per
day, season, etc.
– Will increase upfront and maintenance costs
Solar Photovoltaic (PV) Basics
Picture source: http://www.southhamssolar.co.uk/
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Stabilized electric costs
– Reduced reliance on grid at daily peak energy times, saving money
Reduction in CO2 emissions
Can sell back unused electricity to grid (via Net Metering)
20-25 year lifespan
Typical return on investment (ROI) of < 10 years
Eligible for federal & state tax credits
Property value increase (rule of thumb is 20x one years savings)
Near negligible maintenance cost
Can provide power during blackouts when combined with storage system
1,000 Watts = 1 Kilowatt (KW)
~ $4,000 - $6,000 / KW for install depending on
location ($7,000 - $10,000 in NYC)
– Westchester County currently at ~ $5,500 / KW
~ 1 KW of Solar PV / 100 ft2
1 KW PV produces ~ 1,250 kWh / year (based off
existing installs in New York)
Optimal stationary angle of panels in New York is ~ 41◦
from horizontal
Quick ReferencesMultiple Benefits of Solar PV
Solar PV Benefits & References
(*) Lawrence Berkley National Laboratory, Tracking the Sun VIIGraph source: EIA
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Highest upfront cost to customer
Takes full advantage of tax credits & incentives to reduce upfront cost
Remaining upfront cost can be financed through NY-Sun Incentive Program
Maintenance costs fall on customer (typically negligible)
‘Rent’ Solar PV system from Solar company with monthly cost
Little to no upfront cost to customer
Solar company maintains system
Leasing a Solar PV systemOwning a Solar PV system Installer pays for install,
maintenance, and system Contract between
customer and installer to sell electricity to customer at price lower than utility price
Little to no upfront cost to customer
~20 year contract typically with production guarantees
Price of electricity may increase over time depending on contract
Power Purchase Agreement
Ownership and Financing Options
Picture source: http://www.ce.gatech.edu
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Incentives for up to 25 KW install
Federal tax credits of ≤ 30% of cost of installation
NY State tax credits of ≤ 25% (up to $5,000) of cost of installation after incentives
– Residential Tax Incentives
Smart Energy Loans or On-Bill Recovery Loans for ≤ $13,000 or ≤ $25,000 for higher cost-effective standards
– Repayment of 5, 10, or 15 years
– Financing Options
Solar Estimator will help you determine the size of install and relative costs and savings
– Typical residential homes will need ≤ 10 KW system for 100% generation of electricity demand
Eligibility: multi-unit buildings, schools, NFPO’s, government buildings
Incentives for ≤ 200 KW install Federal tax credits of ≤ 30% of cost
of installation NY State tax credits of ≤ 25% (up to
$5,000) of cost of installation after incentives
– Non-Residential Tax Incentives Participation Loans of ≤ $100,000
below market interest rates and On-Bill Recovery Loans of ≤ $50,000 @ 3% interest
– Repayment of ≤ 10 years
– Financing Options
– Additional PACE financing Solar Estimator will help you
determine the size of install and relative costs and savings
Small Non-ResidentialResidential Eligibility: commercial buildings,
businesses, municipalities, government, NFPO’s, communities
Similar incentives as ≤ 200 KW installs (eligible for funding up to 200 KW)
Currently still in planning phases for > 200 KW install incentives– Follow
NY-Sun Stakeholder Meetings for more information
Large Commercial & Industrial
NY Solar PV Incentives by Building Type
Picture source: http://www.solar.excluss.com/
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Eligibility: all public K – 12 schools in New York (includes multiple schools from one district)
Typically ≥ 50 KW system NYPA will provide free energy advisor services
– Researches technologies, feasibility, savings, and purchasing options
– NYPA will help with financing to realize 0 initial and maintenance costs
Uses similar incentives as commercial installs Request for Proposals (RFP’s) should be submitted by March,
2015
More information and how to register
Schools (K-Solar program)
Community Green Energy Similar to Community Solar but not through NYSERDA / NYPA
– Takes advantage of all incentives previously mentioned Helps develop & finance solar projects for communities
– Typically Power Purchase Agreements Central solar array in community
– Hosted by any business or municipality willing to host panels• Electricity generated is used by host site
– ‘Purchase’ of panels by other businesses & residents within community• Lower upfront cost ; Earn credits on own electric bill
More information and how to apply
Includes all incentives previously mentioned
If system is installed before 2017, eligible for four-year tax abatement (reduction) of 5% per year of install costs for four years
Max of $62,500 per year after rebates
More Information
New York City
Community Solar Bring together communities & schools for group purchasing of
solar and solar education– Economies of scale for both installers & customers (the more
customers, the cheaper the install per customer)
First round of campaign applications closes January 30, 2015
More information and how to apply
Select NY Solar PV Opportunities
Picture sources: http://www.21stcentech.com/ and http://cnyenergychallenge.org/
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Find an installer, or multiple to find best price offering
– Will determine best system size and placement
– Will assist with applications for NY-Sun incentives &
financing options
– Will install and submit all paperwork to NYSERDA
Use Power Purchase Agreements, loans, or full sale to
customers
Megawatt Block Incentive will help determine where
you want to install, take most advantage of incentives
To become NYSERDA certified, must have one of three:
– NABCEP Certification
– IBEW-NECA Electrical Journeyman & Apprentice
Training
– Underwriters Labs Credential
Once eligible, must apply and sign agreements below:
– Installer/Contractor Application
– Sample Participation Agreement
More Information
Installers & ContractorsBuilding Owners
How To Get Involved: Building Owners, Installers & Contractors
Picture source: http://www.solarjobsuk.com/
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NY Sun Initiative – a comprehensive website detailing the NY Sun Initiative
CUNY Solar Information – a comprehensive website of solar incentives, permits, etc.
NYSERDA – more information on solar and other energy efficiency technologies
New York Solar Energy Industries Association – state solar policy, including a comprehensive map of
every New York installer and manufacturer
List of incentivized PV installs in New York – a comprehensive list of solar install including location, size
of install, cost before and after incentives, manufacturers of the equipment, and annual production
rates
Additional Information & Useful Links
For more information, email us at [email protected] visit our site eereports.com
