Did you know that New York State has some of the most ambitious energy storage goals in the country? Thanks to progressive state policies, declining storage costs, and financial incentives, New York is on track to become a leader for solar battery deployment.
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What storage incentives are available in New York?
As of September 2020, most of New York State’s battery incentives only apply to commercial installations. However, homeowners installing a solar-plus-storage system in Long Island are in luck:
PSEGLI’s solar plus energy storage incentive
If you plan on pairing a battery with a solar panel system for your home in Long Island, you should know about PSEG LI’s solar plus energy storage incentive: this program pays customers an upfront incentive of $250 per kilowatt-hour (kWh) of storage capacity. For the average solar battery, this means $2,300 to $3,300 in savings.
Much like the State’s Megawatt solar rebate, as more homeowners in Long Island participate in this program, the incentive will decrease in value. You can confirm the current status of the program on New York State Energy Research and Development Authority’s incentive dashboard.
NYSERDA’s Commercial Storage Incentives
NYSERDA’s Retail Storage Incentive program provides an upfront rebate for commercial electricity customers that pair an energy storage technology with an on-site clean energy generator (like a solar panel system). The value of the rebate depends on the size of the battery your location, and remaining funds: as of September 2020, commercial solar battery incentives are still available in New York City, Long Island, and Westchester Con Edison territory.
New York tax benefits for energy storage
New York does not have any state-specific tax incentives for installing an energy storage system. However, New Yorkers installing a solar-plus-storage system can save on their taxes with the federal investment tax credit (ITC).
The federal investment tax credit (ITC)
With the federal investment tax credit (ITC), you can claim up to 30 percent of the cost of your solar battery as a credit towards your federal taxes. For most homeowners, the ITC can help decrease the cost of a battery by an additional $3,000 to $4,000.
Importantly, standalone storage is not currently eligible for this credit – but it will be starting in 2023 thanks to the Inflation Reduction Act! To claim this incentive for the remainder of 2022, you need to charge your battery with an on-site renewable energy source (like rooftop solar). If you have a residential solar panel system and you charge your battery with electricity from the grid, you cannot take advantage of this credit right now.