7 Ways to Go Solar in NYC

While the average solar conversion price in the Empire State averages around $27,000 before tax incentives and rebate programs, estimating solar costs in NYC is another beast entirely. Multi-family homes and large apartment complexes abound throughout the five boroughs, which can complicate installations and drive up installation prices.

In this article, we’ll be discussing seven ways you can go solar in NYC to keep costs down. Regardless of your living situation and budget, one of these options should work for you.

1. Traditional Solar Loan

Of course, you have access to traditional solar loans if it makes sense for your property. With a traditional loan, you’ll pay a down payment and then finance the rest of your installation costs over five to seven years, on average.

This option is best for residents who live in semi-detached or detached single-family residences (SFR), as it might be too expensive or complicated to go this route if you live in a multi-family building or complex with three or more units.

NYC residents have access to a few different financiers, including Dividend and Mosaic. Check out our article on choosing a traditional financing solution for more information.

A slight variation on the traditional loan is the Smart Energy Loan from the New York State Energy Research & Development Authority (NYSERDA). This option helps keep interest rates low and has terms of up to 15 years for New Yorkers.

2. NYSERDA On-Bill Recovery Loan/Companion Loan

NYSERDA also offers an On-Bill Recovery Loan program, which makes repayment more convenient and guarantees that your total monthly expenditure doesn’t rise above what it is before financing. Your monthly charges are added directly to your utility bill, and interest rates are regulated to maintain accessibility.

The On-Bill loan amount can be between $1,500 and $25,000 with a loan term of five, ten, or 15 years.

For NYC residents, $25,000 may not be enough to cover solar installation, especially if you own a multi-family residence or an apartment complex. If that’s the case, you can also opt for a NYSERDA Companion Loan, which can add an additional $1,500 to $25,000 to your loan amount for larger systems.

4. NYC Accelerator PACE Financing

NYC offers Property-Assessed Clean Energy (PACE) financing to residents in the five boroughs. It’s available for residential condo units, multi-family properties (3+ units only), and commercial properties. As such, this option is going to be most helpful in more densely populated areas throughout the city.

PACE financing adds your monthly payment to your tax bill for ease of repayment, and it helps maintain affordable payments by requiring a specific “savings-to-investment” ratio. There are other borrower and installer requirements for NYC PACE financing as well, which you should familiarize yourself with if you plan on using this option.

5. NYC Community Solar

Community solar is an option for going solar where you sign up to get access to an off-site solar farm. This is a great opportunity for NYC residents who don’t have the authority to install solar on their roofs or the ability to afford to pay for PV equipment upfront. Community solar is available in many areas, but it’s particularly popular in the five boroughs, given the high system costs and limited roof space for panel installation.

If you’re going to go this route, your first step is to find an eligible community solar project to subscribe to. NYSERDA has a list of available projects on its website, and you can search based on your utility company.

Some of the more popular options include:

• G&S Solar in Ridgewood, Queens
• Sunset Park Solar, coming soon to Brooklyn
• YSG Solar, with projects in Queens, Brooklyn, the Bronx, Manhattan, Staten Island, and on Long Island

Solarize NYC is another option worth considering. This program connects residents looking for access to solar power with property owners who have the space and budget1,092112 to install panels.

6. New York City Energy Efficiency Corporation (NYCEEC) Loans

The NYCEEC is a local green bank that provides financing solutions to homeowners and property owners in NYC and the surrounding areas. It has three financing options you can take advantage of, all of which have high minimum loan amounts.

As such, these loans are ideal for owners of large multi-family homes, including apartment complexes and condominium units that are prevalent in Manhattan, the Bronx, Brooklyn, Staten Island, and parts of Queens.

The different loans from NYCEEC are listed below:

• Green Construction Loan: Finances $300,000+ solar projects with up to 100% financing for low-income buildings and up to 90% otherwise.
• Multi-Family Solar Loan: Finances solar projects that cost $200,000 or more. This program also has up to 90% financing or 100% for low-income housing solutions.
• Multi-Family Express Green Loan: Provides up to 90% financing for solar installations for condominiums and co-ops, with a minimum loan amount of $200,000.

All of these loan options are available for solar panel installation, as well as other energy-efficient home improvements.

NYCEEC also provides access to traditional solar financing, PACE financing, and the Green Housing Preservation Program (GHPP), in partnership with NYC HPD (Housing Preservation & Development).

Through GHPP, owners of larger buildings in NYC — a minimum of 50,000 square feet — can finance up to $50,000 per unit for energy efficiency upgrades, including solar panel installation.

7. Choose a 100% Renewable Energy Plan

Finally, New York has a decentralized energy market, which means residents of NYC have an energy choice and can pick an energy supplier from an open market of providers.

You can find a list of suppliers online, usually from the company that produces your energy. For example, Consolidated Edison (Con Edison) provides a complete list of supply companies that you can choose from in its coverage area, which spans all five boroughs.

You can find a supplier that offers a 100% renewable energy plan to ensure that all of your electricity comes from renewable energy sources, all without installing any expensive solar equipment. This is a great way for NYC homeowners to support the clean energy movement without signing up for high installation costs.

Wrapping Up: Ways to Go Solar in NYC

There are lots of options for NYC residents to go solar and even to support renewable energy and reduce their carbon footprints without actually having to pay for equipment. The options mentioned above should accommodate most residents and building owners in the area and help the city reach its worthy goal of converting to 100% clean energy by 2040.