Sunday, January 13, 2013

Gov. Andrew Cuomo plans to extend and expand the NY-Sun initiative


Beginning this year, you could get a tax break when installing solar energy equipment in a commercial building, the New York State Department of Taxation and Finance said last week.

Beginning January 1, 2013, thanks to legislation and Governor Andrew M. Cuomo's support, the State's 4% sales tax won't be charged on the sale or installation of commercial solar energy systems equipment.  The exemption also applies to the 3/8% sales tax imposed in the Metropolitan Commuter Transportation District.

The new law also allows cities and counties, including New York City, to provide a similar exemption from their local sales taxes. 

"This measure builds on the existing solar exemption for homeowners to encourage businesses statewide to use clean, renewable resources," said Commissioner Thomas H. Mattox. 

A little history on the NY Sun Iniative:

The NY-Sun Initiative brings together and expands existing programs administered by the New York State Energy Research and Development Authority (NYSERDA), Long Island Power Authority (LIPA), and the New York Power Authority (NYPA), to ensure a coordinated and well-funded solar energy expansion plan.

“The NY-Sun Initiative puts New York at the forefront of solar development and research, creating green jobs while containing energy costs for consumers," Governor Cuomo said. “This clean energy investment will help protect the environment, expand our solar capacity, and lead to a longterm reduction of the cost of solar in New York."

Last April the Public Service Commission approved NYSERDA’s request to double funding for customer-sited solar electric systems, known as a solar photovoltaic (PV) energy systems, to $432 million over the next four years. The expanded solar program will increase financial incentives for large, commercial-sized PV projects and expand incentive programs for small-to-medium residential and commercial systems.

NYSERDA will also provide additional funding for its competitively bid solar program for larger-scale and aggregated systems that currently focuses on businesses, colleges and universities, and other large buildings located in New York City, Westchester and the lower Hudson Valley. The program, which is now offering $30 million and accepting applications, provides another important strategy to deal with the demand for electricity in the Downstate metropolitan area and will be expanded to other areas of the state.

As part of NY-Sun, NYSERDA and NYPA are collaborating in a NY-Sun balance-of-system (BOS) initiative, working with private and public partners across New York State, and building on the BOS advancements made by the City University of New York (CUNY) and the efforts underway in the PV Manufacturing Consortium.

The NY-Sun BOS initiative focuses on statewide standardization and streamlining of the procedures for permitting and interconnection, and development and training. A broad range of demonstration projects will be conducted that represent residential, commercial and industrial applications. NYSERDA and NYPA  plan to partner with other public and private entities in this effort, including utilities, equipment vendors, solar installers, and localities across New York State.

In support of NY-Sun BOS, NYPA’s new efforts include expanding its current solar research and demonstration programs through its recently announced Solar Market Acceleration Program (Solar MAP), which will make competitive funding available for innovative solar technology research, training and demonstration projects and cost reduction strategies.

To make solar affordable for residents and businesses, NYSERDA and NYPA are providing at least $40 million dollars to promote research into reducing the overall equipment and installation costs so that in the future solar energy is competitive with other forms of electricity and will require no government subsidies.

In addition, the Long Island Power Authority (LIPA) is implementing a first-of-its-kind program in New York State to purchase up to 50 megawatts of solar power that is generated on its customers’ premises. Under this plan, the owner of the PV system is paid a fixed rate by LIPA for every solar kilowatt hour generated over a 20-year term.

U.S. Representative Paul Tonko said, “Investments in solar and clean energy technologies have clear dividends. They create jobs and grow our state’s economy. Today’s announcement shows that the future for solar is as bright as ever in New York State and the Capital Region. I commend Governor Cuomo for advancing policies that promote clean energy innovation, create jobs, protect the environment while cutting our dependence on foreign oil.”

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