By TR Ludwig, NYSEIA Treasurer and Brooklyn SolarWorks CEO
Published March 31, 2025
As a solar energy professional working in the heart of New York City, I see firsthand the growing appetite for clean, affordable power. Our city’s residents are increasingly feeling the pinch of rising utility bills, a trend that shows no signs of slowing. Rooftop solar offers a direct path for families to gain control over their energy expenses, but without incentives, the upfront system costs prevent many New Yorkers from making the switch.
It’s time our state government acted decisively by modernizing the residential solar tax credit and fully embracing the goals of the Accelerate Solar for Affordable Power Act to make solar energy generation accessible to all.
Refocusing tax incentives for solar access
As it stands, the existing residential solar tax credit creates a paradox where those who would benefit the most are locked out of the benefits solar has to offer.
The tax credit, capped at a flat $5,000, has not been increased since 2006 and is simply not adequate in addressing the economic realities faced by many New York families today. While a welcome incentive, the $5,000 cap, with its non-refundable nature, means that low-income homeowners and seniors with limited tax liability often can’t fully benefit.
Our state legislature has an opportunity to rectify this. Senator Harckham and Assemblymember Walker have championed a crucial bill (S.2626 | A.1373) that proposes much-needed updates to the tax credit. This forward-thinking proposal has been included in both the Senate and Assembly budget proposals and signals a strong bipartisan understanding of its importance.
Perhaps the most important update the bill proposes is to make the credit refundable to ensure that low-income families and seniors can immediately access the savings solar offers rather than having to cover the upfront expense and wait to redeem savings as a tax refund.
Additionally, energy storage will be added to the credit’s coverage, another smart move, recognizing the growing importance of battery technology in ensuring grid resilience and maximizing the benefits of solar.
Furthermore, the bill will extend equitable access to co-op and condo residents, unlocking the solar potential of a significant portion of our urban landscape.
And finally, the bill will increase the per-household cap to $10,000 to better reflect the true cost of modern solar installations.
Read the full op-ed here
