Premium Content: Historic charm meets modern sustainability
In the heart of Prospect Lefferts Gardens (PLG), a quiet revolution is taking place. Amidst the brownstones, a growing number of rooftops are sporting solar panels, transforming this historic Brooklyn block into a beacon for the future of sustainable energy in NYC. What’s even more remarkable is that many of these installations have been made possible by leveraging a little-known incentive: the Historic Tax Credit.
The PLG solar boom
Homes in historic districts, often admired for their architectural character, might seem like unlikely candidates for solar. However, the combination of financial incentives and increasing awareness of energy efficiency and environmental responsibility has made solar an attractive option for homeowners in these areas.
The New York State Historic Tax Credit (HTC) offers a significant advantage for homeowners in landmark districts, covering 20% of the solar installation costs. This credit, designed to encourage the preservation and improved efficiency of historic properties, can be a game-changer for those considering solar.
In addition to the HTC, homeowners can also take advantage of the New York State Solar Tax Credit ($5,000), the NYSERDA/NY-Sun rebate ($0.15 per watt cash rebate, though these are dwindling quickly) and the NYC Property Tax Abatement (30% of solar systems’cost over four years). Combined, these incentives can reduce the upfront cost of going solar by 70% to 90%.
Payback, net metering and property value
The average solar payback period in NYC is between five and eight years, depending on factors like system cost, electricity rates and financing. Net metering, a program that allows homeowners to sell excess solar energy back to the grid, further enhances the financial benefits. And, according to a Zillow study, homes with solar panels in the NYC area see a 5.4% increase in property value, translating to a premium of nearly $24,000.
Homeowner stories: Realizing the savings
The real story of PLG’s solar success lies in the experiences of its residents.
Deborah M. was inspired to go solar when a neighbor a few doors down shared their positive experience with Brooklyn SolarWorks, the company many in the neighborhood have chosen for their installations. “They were very responsive, always reassuring,” she said.
Another PLG resident, Richard H., shared his satisfaction with his investment, noting that his solar panels cover the entire cost of his electrical bill, and his home often generates enough power in a given month to put kWh units back onto the grid. Hannah L., who installed a flat panel system on her landmarked house, saw similar results, stating, “[I] haven’t had to pay an electric bill since we had them installed.”
Gary and Trevor, also PLG residents who have had their system for six years, emphasized the long-term financial benefits. “We liken it to a mortgage on your electricity,” Trevor said. “You pay it off, and then you’re free.” They also highlighted the environmental benefits and the seamless experience of working with Brooklyn SolarWorks.
“They took care of everything,” Trevor added. “From permits to cleanup … they know everything from A to Z.”
The future of solar in PLG and beyond
With electricity rates on the rise, the demand for solar in NYC is expected to grow. However, the NY-Sun incentives are nearing their end. As demand for solar surges in response to escalating electricity costs, the remaining funds are being depleted quickly. In some regions of New York, the incentives have already run out. This means that homeowners who delay their solar projects risk missing out on that avenue of savings.
The financial advantages of solar are compelling for all city residents, regardless of where they live. Even without the Historic Tax Credit, the combination of state and local incentives, coupled with the long-term savings from reduced energy bills, makes solar a smart investment for homeowners across NYC.