Solar Hot Water Program Incentive

Qualified residential and non-residential customers interested in supplementing their electrically heated hot water with new solar hot water systems can work with their NYSERDA-eligible installer to apply for funding through the Solar Hot Water (Solar Thermal) Incentive Program.

Incentives are available to New York State residents and businesses who pay the Renewable Portfolio Standard (RPS)/System Benefits Charge (SBC) as part of their utility bills. On average, incentives for a typical residential or commercial system cover approximately 15 to 20 percent of the installation cost. System incentives are capped at $4,000 per site/meter for residential systems and $25,000 per site/meter for non-residential applications.

Incentives are paid directly to an eligible installer, who is responsible for crediting the full amount of the approved NYSERDA incentive to the customer. A NYSERDA-eligible solar hot water installer is an installer who has demonstrated technical competence in the solar hot water field and has signed agreements with NYSERDA. System owners may also qualify for New York State and federal tax credits. These credits, together with NYSERDA incentives, can save you as much as $7,000 for a residential system.


  • Solar hot water systems can reduce your electric portion of your energy bill up to 20%
  • Solar hot water systems can supply up to 70% of your hot water needs
  • Residential customers can receive up to $4,000 in NYSERDA incentives
  • Non-residential customers can receive up to $25,000 in NYSERDA incentives per site
  • Solar hot water systems may be eligible for tax credits and other incentives

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Program details can be found in the Solar Thermal Program Manual [PDF]

Access additional information on the Solar Thermal Resource page.

Last Updated: 05/29/2014