Indiana Makes Landmark Ruling on Cost for Solar Rebates
The cost for solar in New York can be partially offset by Net Metering. This program ensures that you get paid for any electricity that you export to the grid. In New York, the market is highly regulated and Net Metering makes up a significant portion of the savings that are enjoyed. Not every state has the same consistently regulated environment. The Indiana Supreme Court recently made a ruling regarding how utility companies pay their customers for solar. It might not work out best for consumers there.
Indiana Court Rules in Favor of Utility Companies
The Indiana Supreme Court decided this week that utility companies are free to calculate excess energy payments (like Net Metering in New York) in any way that they deem appropriate. The only restriction is that utility companies must get approval from the Indiana Utility Regulatory Commission.
This effectively gives Indiana electricity companies the freedom to set the price at which they buy solar energy from households. Some consumer advocate groups were unhappy with the decision, with one saying that it would put consumers at a competitive disadvantage.
How Does Net Metering for Solar Power in New York Work?
Net Metering in New York will reduce the cost for solar, by maximizing the potential of your solar panels.
During the day, solar panels will typically produce more electricity than you consume. The excess gets exported to the grid and spins your meter in reverse. This will then offset the electricity that you consume from the grid in the evenings.
If you end the month with a surplus, this will carry over to the next month. If you end the year with a surplus, you will be paid for the difference.
There’s also an alternative system for solar power in New York, known as VDER. This is a more complicated system, and the savings might not be as significant, but it depends on your utility company and where you live. The VDER system is like Net Metering although the price at which you are rebated depends on several factors including…
- The environmental benefit of your solar installation.
- The current wholesale energy rate.
- How much your solar system decreases demand on the grid.
- How much your system affects the need for future grid upgrades.
It has been argued that VDER is more favorable for utility companies than it is for households, although this should be evaluated on a case-by-case basis. When you sign up for a New York solar installation, our team will evaluate your energy usage patterns and help you to determine which program would be better. In most cases, Net Metering is the best option.
The Conditions are Ideal for a New York Solar Installation
The cost for solar is favorable in New York. You can get your New York solar installation knowing that savings will be available with Net Metering or VDER. There are also solar incentives available to reduce the cost of investment in your New York solar installation.
- A State tax incentive will reduce the cost for solar, based on the total bill. You could also be eligible for a residential property tax abatement program if you’re in New York City.
- There’s a Federal tax credit equal to 30% of the cost of your system. This significantly offsets the cost of solar.
- You can get a direct rebate, taken off the top of your bill, funded by the New York Energy Research and Development Authority.
You can learn about the specific incentives available for your New York solar installation. New York Power Solutions will even factor these into your financing. Expected tax credits can be applied to an initial interest-free period on solar financing, with no money down.
Learn About the Cost of Solar in New York
New York Power Solutions is standing by with your free NY solar estimate. We base initial estimates on satellite imagery and will follow up with a consultation, energy evaluation, and on-site inspection/final estimate. We’ll even provide you with a cost/benefit analysis so you can determine if the cost for solar is worth it in your case.
Indiana might not get the fairest deal on solar, depending on how the latest news pans out. But if you’re based in New York, you can get an affordable installation with great incentives. Start with us today and see how making the switch could benefit your finances.