Updated October 24, 2023
New York City expanded solar property tax abatement under Assembly Bill A6113B to four years, benefitting residential and commercial buildings within the city, resulting in annual savings exceeding $62,000 per year. Furthermore, beginning in 2024, the abatement rate will increase from 20% to 30%.
Noah Ginsburg, Executive Director of the New York Solar Energy Industries Association, emphasized the impact of this legislation on the city's pursuit of reaching 1-gigawatt of solar capacity by 2030.
"The city has made some good progress toward that goal, but I don't think they were on track to achieve that goal necessarily," Ginsburg said. "This expanded incentive we think puts us more on track to hit that goal. Our forecast is that this will help close that gap by about 95 megawatts, give or take."
While the bill itself carries numerous advantages, it also serves as a catalyst for other climate-related legislation in the city. City Councilmember Sandy Nurse has proposed a bill to install 100 megawatts of solar on city-owned buildings by 2025, with plans to expand that target to 150 megawatts in private buildings by 2030.
Despite the expiration of the abatement in 2034, the city remains committed to its renewable energy path, with plans to bolster residential solar tax credits in line with federal programs to maintain a sustainable balance.
"So, anywhere in New York State, today, if you install solar panels on your home, you're entitled to a tax credit of up to 25% of the cost of the system," explained Ginsburg. "That incentive is capped at $5,000 per household, and that cap hasn't increased since 2006."
He expressed the hope of introducing proposed legislation in the upcoming State Legislature session to adjust the incentive cap in line with inflation, driving greater adoption of residential solar systems.
Want to see how much you could save with solar?
Our team will guide you through the best options for your home.