LEARN IF SOLAR IS RIGHT FOR YOU?
Solar is a new industry many entrepreneurs are using to scam customers. Offering home and business owners incentives they may not qualify for, overcharging them, using inferior installers who seem to go out of business every few years, damaging roofs and then charging for repairs, lying about needing a new roof, the list goes on.I have been in the business for many years, and I refuse to work with any company more interested in selling than helping their customers. “The Solar Guy,” a solar broker, only represents three companies, each being the best in their field and operating with transparency and integrity. Why three companies? Because each represents a different field in the solar industry.
The largest solar company, Sunrun, is a multi-billion-dollar company operating in 20 states. Sunrun specializes in pitched roofs. They make most of their revenue on selling Power Purchase Agreements (Leases).
Brooklyn Solar Works is the pre-eminent flat roof solar company with a patent on the canopy systems used on flat roofs.
AccordPower, the tri-state area’s premier solar installer, is a commercial installer for NYCHA, FDNY, and many private companies.
These three companies are the best in their field and work with the highest level of integrity. Working with “The Solar Guy” ensures that we will determine if solar is right for you and will work to get you the best deal. Call for a free consultation. 212.920.0596.
Many potential solar leads are not clear on what the incentives are to converting to clean reusable solar energy. They here the words "Government Program" and "Free" and are misled into thinking the government is giving away solar systems for free. This is false. The government gives incentives to go solar with tax credits. The following FAQ's will define what the solar tax credits are and how to claim them.
FREQUENTLY ASKED QUESTIONS
What is a tax credit?
A tax credit is a dollar-for-dollar reduction in the amount of income tax you would otherwise owe. For example, claiming a $1,000 federal tax credit reduces your federal income taxes due by $1,000. The federal tax credit is sometimes referred to as an Investment Tax Credit, or ITC, though is different from the ITC offered to businesses that own solar systems.
What is the Federal Residential Solar Tax Credit?
The Federal Residential Solar Energy Credit is a tax credit that can be claimed on federal income taxes for 30% of the cost of a solar PV system paid for by the taxpayer. (Other types of renewable energy are also eligible for similar credits but are beyond the scope of this guidance.) The installation of the system must be complete during the tax year. There is no maximum amount that can be claimed.
Who is eligible to claim the 30% Federal Residential Solar Tax Credit?
You might be eligible for this tax credit if you meet the following criteria:
• Your solar PV system was installed between January 1, 2017, and December 31, 2034.• The solar PV system is located at a residence of yours in the United States.
• You own the solar PV system (i.e., you purchased it with cash or through financing but you are neither leasing the system nor paying a solar company to purchase the electricity generated by the system).
• The solar PV system is new or being used for the first time. The credit can only be claimed on the “original installation” of the solar equipment.
What expenses are included?
The following expenses are included:
• Solar PV panels or PV cells (including those used to power an attic fan, but not the fan itself)• Contractor labor costs for onsite preparation, assembly, or original installation, including permitting fees, inspection costs, and developer fees.
• Balance-of-system equipment, including wiring, inverters, and mounting equipment.
• Energy storage devices that have a capacity rating of 3 kilowatt-hours (kWh) or greater (for systems installed after December 31, 2022). If the storage is installed in a subsequent tax year to when the solar energy system is installed it is still eligible, however, the energy storage devices are still subject to the installation date requirements).
• Sales taxes on eligible expenses.
What forms should you use to file for your Federal Solar Tax Credits in NYC?
1. IRS Form 5695. Download IRS Form 5695 from the IRS website.2. Fill out the form, detailing your solar installation costs. This form calculates the federal tax credit.
3. Attach the completed Form 5695 to your federal tax return.
4. File your tax return by the April deadline.
What is the State Residential Solar Tax Credit?
The State Residential Solar Energy Credit is a tax credit that can be claimed on state income taxes for 25% of the cost of a solar PV system up to $5,000 paid for by the taxpayer. (Other types of renewable energy are also eligible for similar credits but are beyond the scope of this guidance.) The installation of the system must be complete during the tax year.
Who is eligible to claim the 25% up to $5,000 State Residential Solar Tax Credit?
You might be eligible for this tax credit if you meet the following criteria:
• Your solar PV system was installed between January 1, 2017, and December 31, 2034.• The solar PV system is located at a residence of yours in the United States.
• The solar PV system is new or being used for the first time. The credit can only be claimed on the “original installation” of the solar equipment.
What forms should you use to file for your State Solar Tax Credits in NYC?
1. IRS form IT-255. Download the appropriate New York State tax credit form (typically IT-255).2. Fill it out, detailing your solar system costs and any additional required information.
3. Attach proof of installation and any other required documents.
4. File Your New York State Taxes.
5. Include the completed New York State tax credit form with your state tax return.
6. File your state tax return by the designated deadline.
What is the Property Tax Abatement for solar panels in NYC?
The Property Tax abatement reduces the amount of property tax you pay by 7.5% of the cost of your solar system each year for four consecutive years. In September 2023, the signing of Senate Bill S6640B extended this incentive through 2034 and increased the incentive amount from 20% to 30%.
What form should you use to file for your Property Tax Abatement in NYC?
1. IRS PTA4 Form. A completed PTA4 shall be submitted with the request for alteration application sign-off relating to the installation of a solar electric generating system; and must be received by the Department of Buildings by March 15th in order to qualify for a property tax abatement to take effect on July 1st of the same calendar year. 2. IRS Form RP-495. Download the NYC Department of Finance Form for solar property tax abatement (Form RP-495).3. Fill Out the Form and provide required information about the installation and property.
4. File Form RP-495 and any supporting documents with the Department of Finance.
5. Check submission deadlines to ensure you submit your application by the deadlines specified for property tax abatement.
Does Solar companies place liens on the property?
No, they don't and should not. What you may see is a notice filing submitted to the local jurisdiction, but a notice filing is not a lien. Instead, it’s a notice that request the county to place on the home. To anyone looking up public records for the home, the notice indicates that the solar energy system belongs to the solar energy company. Depending on the location of the home, you may hear the term Notice of Independent Energy Producer (NOIEPC) filing, Universal Commercial Code (UCC) filing, Public Utilities Commission (PUC) filing, “fixture” filing, or other such titles. The thing to remember is that these are all filings—not liens.
Does the solar agreement affect your buyer’s mortgage?
No. Per Fannie Freddie guidelines, solar PPAs and leases do not affect a buyer’s debt/ income ratio or loan approval. Our Legal Department can provide a letter stating our compliance with Fannie Mae and Freddie Mac selling guidelines. Solar bill should be treated as a utility bill. No “solar comps” are needed for appraisal purposes.
What can I do to ensure the home sale goes smoothly?
As soon as the home seller has accepted an offer from a home buyer, email the solar company’s Service Transfer team so they can work with the two parties to complete all the necessary agreement transfer steps. They also find that service transfers are easiest when the Agreement is disclosed early and made a contingency of the sale.
What if the new homeowner does not pass the soft credit check?
Not to worry, we have a few different options for those who fall into that category. Just have them give us a call and we’ll talk to them about it.
What happens if the new homeowner does not want the Solar system?
No problem. Once you place your home on the market, be sure to add the remaining balance of the system to the cost of your home. For example, 600k becomes 620k, not a big difference. You tell the buyer that the system will be removed. Once you close, you pay off the system and have the panels removed.
We also have a 98% transfer success rate. If you contact us, we can help you alleviate any questions or concerns the prospective homeowner may have. If we can’t, we’ll go over other options and help you find a solution that fits your needs and the needs of your client.
How do I know which type of agreement the seller originally signed?
Have the seller login to their online account and locate their agreement. They can also access the system design and any other important documents you deem necessary for the home sale.
How much power does the solar energy system produce?
Many different factors go into the production of each system including things like the number of panels, the type of panel, the roof location etc. To find out how much energy the system may produce, ask to see a copy of the solar agreement.
Hopefully, you have a clearer picture of what the solar program is and how you can benefit. During a consultation, we will access your annual usage, request a system design for your roof and then go over the benefits of going solar.
So, what are you waiting for? Let's talk. Give us a call. We are Solar Professional Consultants.
We are The Solar Guys. 212.920.0596