NY-Sun Loan Program

NY-Sun loan program is part of broader NY-Sun Initiative program to accelerate the use of solar PV across the State. In addition to cash incentives, NY-Sun Initiative also provides State sponsored low-interest financing options to install solar PV systems. The financing for the program is made available through the Green Jobs- Green New York (GJGNY) Act of 2009.

Residential

NYSERDA offers three financing options to residential customers, On-Bill Recovery Loan, Smart Energy Loan, or Renewable Energy Tax Credit Bridge Loan. These loans provide lower interest rates to low-income residents and to those who cannot qualify for traditional. Residential customers may be eligible for loans between $1,500 – $25,000 with loan terms varying between programs. Loan rates are subject to change, check available residential rates here.

Residential On-Bill Recovery (OBR) Loan

The OBR Loan is available to homeowners who are named on the utility account, and serviced by Central Hudson, Con Edison, PSEG-Long Island (must apply directly through utility), NYSEG, National Grid (upstate customers only), Orange & Rockland, or Rochester Gas & Electric. With the OBR Loan, loan payments are paid as part of the customer’s utility bill. Estimated average monthly energy cost savings must be greater than monthly loan payments to use this loan. Loan terms vary from 5, 10, or 15 years. Loan balances may be transferred to a new owner when the home is sold, as long as written notice is provided to the new owner.

Smart Energy Loan

The Smart Energy Loan is a traditional loan that is repaid monthly via check or automatic payment. To qualify for this loan, applicants must own the home or be an authorized representative of the property owner. Loan terms vary from 5, 10, or 15 years. If the property is sold or transferred, the applicant remains responsible for the balance of the loan.

Renewable Energy Tax Credit Bridge Loan

The Renewable Energy Tax Credit Bridge Loan (Bridge Loan) is a short-term loan product which enables applicants to finance federal and state tax credits and the NYC Real Property Tax Abatement for eligible renewable energy system products. The Bridge Loan has a balloon payment of principal and interest due at maturity and can be paid via check or automatic payment. This loan can be paired with the Smart Energy or On-Bill Recovery Loan (combined total cannot exceed $25,000). To be eligible for the Bridge Loan, applicants must be the home owner or an authorized representative of the property owner. The loan term is 2 years. Loan amounts may not exceed the maximum of federal income tax credit of 26% for systems installed in calendar year 2021 and 2022, and 22% for systems installed in 2023; the New York State Income tax credit for solar projects equal to the lesser of $5,000 or 25% of the net project cost; and the NYC Real Property Tax Abatement of 5% of the net project cost (offered for a 4 year period, but only one year can be included in the loan. If the property is sold or transferred, the applicant remains responsible for the balance of the loan.

Commercial

NY-Sun partners with private-sector financial institutions to offer loans for small and large businesses, as well as not-for-profit organizations. There are three loan options available Small Business/Not-for-Profit On-Bill Recovery loan, Small Commercial Participation loan, and Commercial/Industrial – Energy Improvement Corporation (EIC).

Small Business/Not-for-Profit On-Bill Recovery Loan

With the similar to the residential version, loan payments are paid as part of the customer’s utility bill. Through this program, small businesses and not-for-profits have access to loans of up to $50,000 at an interest rate of 2% (fixed at closing), with a repayment period of up to 10 years. Loan balances may be transferred to a new owner when the property is sold. 

Small Commercial Participation Loans

NYSERDA partners with lenders to help small businesses and not-for-profit organizations access up to $100,000 in financing at a below-market interest rate and with flexible repayment periods. For this program, NYSERDA offers a loan for 50% of the project cost, up to $50,000 at an interest rate of 2% (fixed at closing). The participating lender provides the remainder of the loan at the market interest rate. Borrowers make loan payments directly to their lender as with a typical loan. The consolidated interest rate is subject to the customer’s credit qualification.

Commercial/Industrial – Energy Improvement Corporation (EIC)

EIC is a New York State non-profit, local development corporation that operates EIC OPEN C-PACE for the benefit of its member municipalities, which include counties and cities across New York State, as well as towns in Westchester County.