TAKE ACTION: Contact Your Representatives Regarding the Residential Solar Tax Credit

March 28, 2022

NYSEIA

The New York State Solar Energy System Equipment Tax Credit has been effective at helping NY meet its solar energy deployment goals, but our industry is battling inflationary headwinds. To counter these trends, NYSEIA is advocating for an updated state tax credit, and we need your help to make it happen.

The Senate included improvements to the state solar tax credit in its version of the budget, and now we need the Assembly to do the same. Please call or write your representative—as well as the Governor's office and key Assemblymembers listed below—to let them know that you support the industry's position for a better solar tax credit.

You can use our links and talking points below to coordinate your advocacy. Time is of the essence and we need you to accomplish this over the next week. Please circulate this call to action among your colleagues, customers, and solar allies! If you have any questions about this campaign, contact info@nyseia.org.

MESSAGING & TALKING POINTS

Dear Assemblymember XXXXXX,

I strongly support passage of a New York State budget that includes updates to the New York State Solar Energy System Equipment Tax Credit as outlined in the New York Senate one-house version. The tax credit has not changed in 10 years and there are several sensible ways to modernize this policy that would boost New York's renewable energy transition and generate more good-paying jobs.

Suggested Improvements to the State Solar Tax Credit

Increase the maximum tax credit to $10,000 for systems installed after April 1, 2022 (while maintaining the 25 percent of project cost limit).
Make energy storage equipment expenses eligible.
Update restrictive language regarding cooperatives and condominiums, which will increase access.
Remove the requirement that only primary residences are eligible (but maintain the provision that the tax credit can only be claimed once per taxpayer).

Increasing the Cap: Increasing the maximum tax credit amount is necessary to accommodate energy storage. On its own, making energy storage eligible for the tax credit will not be effective without also increasing the maximum credit amount. Many solar projects without storage already hit the existing $5,000 threshold, and thus the tax credit would not help to offset the cost of incorporating energy storage. Increasing the maximum tax credit amount to $10,000, while maintaining a limit of 25 percent of the project cost, would address this issue and encourage more energy storage deployment in New York.

Adding Energy Storage: Including energy storage equipment would bring the tax credit into alignment with state objectives and animate a nascent market. Energy storage devices will be critical to achieving a zero-carbon electric grid. Governor Hochul recently announced an increase in the state’s energy storage target to 6 GW by 2030, and including energy storage in the tax credit is a fast and simple means of implementing her plan. It also reflects the fact that solar paired with energy storage provides significant resilience benefits for residents and can also provide benefits for all ratepayers

Bottom Line: Updating the Solar Energy System Equipment Tax Credit would:

help local businesses to thrive;
generate clean energy jobs;
deliver climate resilience; and
help more New York electricity customers access savings on their energy bills.