Upcoming Rebates & Incentives
The recently adopted Federal Inflation Reduction Act (IRA) allows American households to save thousands of dollars on upfront costs of energy-efficient electric equipment and to take advantage of clean energy and electric vehicle tax credits. Most homeowners and renters are eligible for upfront discounts and tax credits based on their annual income.
For example, a 2-person household with annual income of $90,000, living in their home in East Hampton could be eligible for as much as $21,050 in total incentives. How much money could you get with the Inflation Reduction Act? Click here to find out with Rewiring America’s Savings Calculator.
Overview Table of Current Rebates & Incentives (2023)
|Technology/Appliance||Rebates & Incentives||Source and more info|
|Energy Assessment & Retrofit||Free Audit & Low Cost Financing||PSEGLI, NYSERDA, EnergizeEH|
|Heat Pumps for Water Heating||$1,000||PSEGLI|
|Air Source Heat Pumps (cold climate units)||$350 to $5,500 per 12000 BTU||PSEGLI|
|Ground Source Heat Pumps||up to $6,000 + 30% Tax Credit||PSEGLI & IRS|
|Clothes Dryer Heat Pump||$300||PSEGLI|
|Clothes Dryer Energy Star||$50||PSEGLI|
|Washer EnergyStar Most Efficient||$50||PSEGLI|
|Smart Thermostat (w central AC)||$70 – $100 per thermostat||PSEGLI|
|EV Charger Rebates/Tax Credits||30% Tax Credit (max. $1,000)||PSEGLI|
|Electric Vehicle Purchase||Up to $2,000 NYS + $7,500 IRS||NYS rebate & IRS tax credits|
|Solar Electric||30% Federal + up to $5,000 NYS||IRS & NYS Income Tax Credits|
|Solar w/ Energy Storage||30% Federal + $250/kWh NYS||IRS & NYSERDA / PSEGLI|
Rebates, Tax Incentives, Financing
Investments in energy efficiency or renewable energy like solar panels often pay for themselves by saving more money on utility bills over the years, but the upfront investment can present a challenge. One simple way to justify the upfront investment for a solar roof is to think of it as paying your electric bill for the next 25 or more years upfront, and not having to worry about high electric bills anymore.
Another way is to think about it is that paying your monthly utility bill is like paying rent. When you purchase a solar array you are investing in your home instead of sending money to the utility company. Financial incentives and financing can help overcome the hurdle of making an investment. There are a variety of incentives available, including utility rebates, tax credits, contractor, manufacturer, and bulk purchase program discounts.
The first rule on rebates (and tax credits) is: Don’t wait too long! Incentive programs are designed to “transform markets” in their early stage, then to gradually lower and eliminate incentives as the market develops. So don’t procrastinate. And besides, the longer you wait, the longer you are wasting money.
LIPA, through its contractor PSEG Long Island offers a variety of rebates for energy efficient appliances, heating & cooling equipment, and solar with energy storage.
- Appliances & Products: Energy Star certified washers, dryers, dishwashers, freezers, dehumidifiers, air purifiers, heat-pump water and pool heaters, lawn equipment, and more.
- Cooling & Heating: Cold climate Air Source and Ground Source (aka ‘geothermal’) heat pumps which can heat and cool, and smart thermostats (if you have A/C and enroll in the SmartSavers program).
- They can also pick up your old but still working refrigerator, freezer, or dehumidifier, recycle it, and give you a $50 rebate ($35 per humidifier).
Rebates & Incentives for Solar with Energy Storage
While PSEG-LI stopped offering rebates for solar electric (PV) systems, there are new rebates and incentives available for solar PV systems with battery energy storage. These systems can provide power for critical circuits to your home during grid outages.
New York State’s Solar Plus Energy Storage Incentive is available for the energy storage component of the system and can reduce your upfront cost by thousands of dollars. The system must be installed by a participating NY-Sun contractor who can provide more detailed info on the incentive. Contact the Town’s official Solarize contractor, GreenLogic Energy (more info here).
You may also qualify for federal and state income tax credits for the cost of your solar PV + energy storage system. PSEG-LI’s Energy Storage Rewards Program offers additional savings if you agree to supply power from your batteries to your home or grid a few times each year.
NationalGrid offers rebates for natural gas customers for smart thermostats, radiator valves, pipe insulation, higher efficiency gas boilers, furnaces and water heaters, and boiler reset controls,
Financing helps if you don’t have the cash to pay the entire upfront cost of a major investment like upgrading your home’s insulation, installing solar panels, or an energy efficient heating & cooling system.
Customers with a total household income equal to or lower than 80% of State or Area Median Income (80% of State or Area Median Income), may be eligible to receive financial incentives through the PSEG Long Island Assisted Home Performance with ENERGY STAR® subsidy program.
Interested customers may also be eligible for two reduced-interest loan products through the Green Jobs-Green New York (GJGNY) program. For information on GJGNY loan products, please visit New York Financing for Energy Efficiency Projects.
Financing for Solar
NY-Sun offers two loan options for residents: On-Bill Recovery and Smart Energy loans. Loan amounts are available from $1,500 to $25,000 with loan terms of 5, 10, or 15 years to help New York residents finance solar installation.
For additional information about residential financing, we encourage you contact GreenLogic Energy, East Hampton Town’s Solarize contractor, and to visit NYSERDA’s Paying for Solar pages and consult the NY-Sun Upstate + Long Island Program Manual [PDF] June 2022 edition.
Income Tax Credits are available for solar energy installations and certain other clean energy technologies. Be sure to consult an accountant or tax advisor before making any investments based on tax credits.
Federal Residential Energy Credit
This IRS income tax credit is available to homeowners for installations of qualified solar electric or water heating, small wind energy, geothermal heat pump, and fuel cell systems. This tax credit is now 30% of the cost of the system (up from 26% in 2021), more here. More info regarding this credit and the 2022 IRS Form 5695 is here.
New York State Income Tax Credits
This Solar Energy System Equipment Credit for qualified equipment installed and used at your primary residence is equal to 25% of your expenditures and is limited to $5,000. The tax credit is not refundable. However, any credit amount in excess of the tax due can be carried over for up to five years. The solar energy system must use solar radiation to produce energy for heating, cooling, hot water, or electricity for residential use.
You are entitled to claim this credit if you:
- purchased solar energy system equipment,
- entered into a written agreement for the lease of solar energy system equipment, or
- entered into a written agreement that spans at least ten years for the purchase of power generated by solar energy system equipment not owned by you.
DSIRE – Database of State Incentives for Renewables & Efficiency https://www.dsireusa.org/ is a searchable and up-to-date resource for policies and incentives for U.S. states and can be searched by ZIP code.
Disclaimer: Energize East Hampton does not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction.