Albany discussing raising solar goals, offering $10,000 tax credit for installing panels

ALBANY — New York State would increase its solar goals and provide a tax credit for homeowners of up to $10,000 for installing solar panels in an effort to lower utility bills and carbon emissions, according to proposals being discussed in the state budget.

"We talk about the need for affordability with utility rates. A kilowatt of solar energy is far cheaper than a kilowatt generated by natural gas, it's much quicker to scale, and it's one way that we can continue to advance our climate goals," said Senate Environmental Conservation Committee Chairman Pete Harckham (D-South Salem), who is sponsoring bills being discussed in the budget.

The Accelerate Solar for Affordable Power Act, or ASAP, would raise the state’s distributed solar target from 10 gigawatts to 20 gigawatts by 2035 in an effort to reduce greenhouse gas emissions and fight climate change. Another bill would double the personal income tax credit for installing solar energy systems from $5,000 to $10,000 and make the credit refundable for low-income taxpayers.

Both bills were included in the state Senate one-house budget proposal. Lawmakers and environmental advocates are pushing for them to be included in the final, more than $260 billion budget, which was due April 1. The legislature passed a second budget extender April 7 as negotiations continue.

The push to boost solar comes as Gov. Kathy Hochul, who is up for reelection in November, is moving to slow down the state's climate goals, citing the need for affordability as utility rates soar and oil prices continue to rise because of the war with Iran. The 2019 climate law requires the state to get all of its electricity from emission-free sources by 2040 and reduce economywide emissions by 40% from 1990 levels by 2030 and 85% by 2050. Hochul is trying to push back the 2030 goal. 

The changes have become a major sticking point in negotiations with Democrats, who hold a majority in the Senate and Assembly and don't want to slow the timeline. All 213 seats in the legislature also are up for election in November.

Unlike the overall goals, which the state isn't on track to reach due to a number of factors including the pandemic, federal inference and supply-chain issues, New York is ahead of schedule on distributed solar.

"It’s a bright spot in our clean energy transition," said Noah Ginsburg, executive director of the New York Solar Energy Industries Association. Solar helps lower everyone’s electricity bills, he said. "New York doesn’t need to choose between being ambitious about clean energy and affordability."

Distributed solar projects are five megawatts or smaller and include residential rooftop projects as well as community solar, where residents can subscribe to and access power from a shared project.

Sen. Mario Mattera (R-St. James) said growing solar is "commendable" but he’s concerned with the capacity of the power grid and the safety of the battery systems needed to store the solar energy.

"It’s the cart before the horse. We need to make sure we invest in infrastructure first then we can transition to solar and all renewables," Mattera, the ranking Republican on the Senate energy and telecommunications committee, told Newsday.

Doubling down on solar

New York was ahead of meeting its goal of six gigawatts from rooftop and community solar by 2025, so in 2022 the state raised the goal to 10 gigawatts by 2030.

Six gigawatts is enough to power approximately 1 million homes, Ginsburg said.

The state is now about three years ahead of schedule for that goal, with nearly eight gigawatts of distributed solar already in place, advocates and lawmakers said.

Of that, more than one gigawatt comes from Long Island across 98,363 solar projects, according to the New York State Research and Development Authority website.

The ASAP bill would lower New Yorkers’ electricity bills by an estimated $1 billion when fully implemented and avoid 3.2 million metric tons of carbon dioxide emissions, according to a report by Synapse Energy Economics, a research and consulting group.

Rooftop and community solar gives immediate reduced cost to utility customers and reduces stress on the grid, said Assemb. Deborah Glick (D-Manhattan), chairwoman of the Assembly Environmental Conservation Committee.

The legislation also would continue the NY-SUN program providing rebates and incentives to support solar installations. The Senate one-house budget included $250 million for the program. Increased tax credits for installing solar would help offset the loss of a federal tax credit that ended in 2025, Harckham said.

Obstacles

One of the main obstacles to solar and other renewable projects is battery storage. Though most distributed rooftop and community solar projects do not need battery storage, batteries are commonly used to store power so it can be released when there’s increased demand. For example, solar power is produced during the day, but peak demand is at night when people are at home. 

Municipalities, particularly on Long Island, have been placing moratoriums on battery storage construction because of concerns over fires caused by lithium-ion battery systems.

Mattera said battery storage shouldn't be placed in densely populated areas.

The state did a rigorous safety evaluation of the industry and came up with new protocols and guidelines, so the next generation of batteries is "much, much safer," Harckham said. "There’s a lot of misinformation out there, but batteries are going to lower peoples’ rates."

Hochul, when asked about raising the solar goal last week, said she’s looking mainly at the climate law’s overall targets, but is still committed to investing in renewables.

Distributed solar is part of the larger climate discussion, but it’s not "driving the train," Glick said. "Since solar has been achieving ... resetting those goals would make sense." 

State Senate Finance Committee Chair Liz Krueger (D-Manhattan) told Newsday increasing the solar goals and access to things such as portable solar panels for renters should be part of the discussion.

There are "fundamental disagreements" with the governor over the climate law, Krueger said. "We shouldn’t be reversing ourselves. We shouldn’t be slowing down. ... There are just a whole series of things we know are working and will be effective, and we should be moving forward."