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Solar incentives for affordable housing developers have never been better. With significant funding opportunities from the Inflation Reduction Act (IRA) and net-zero building incentives and programs through NYSERDA, now is the perfect time for developers to transition to clean energy.
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Why Solar is a Smart Choice for Affordable Housing Developers
Solar energy provides developers, contractors, and property managers with long-term benefits, including:
- Protection against rising utility costs.
- Increased energy independence and resiliency.
- Support for sustainability goals and green building certifications.
Solar also aligns perfectly with New York’s clean energy goals and meeting the All-Electric Buildings Act’s zero-emission requirements for new construction by 2026. Developers can stay ahead of these changes by adopting solar now while maximizing financial incentives.
Real Examples of Solar-Powered Affordable Housing in New York
At GreenSpark Solar, we’ve partnered with affordable housing developers to deliver impactful, sustainable projects, including:
Johnson Park Apartments: Utica, NY
PUSH Buffalo’s affordable apartments, West Side Homes, was awarded NYSERDA’s Building of Excellence designation. The project will bring 49 affordable rental apartments to West Buffalo, with BestSelf Behavioral Health providing supportive services for up to 16 households.
270 on East: Rochester, NY
270 on East, located in Rochester, NY’s inner loop area, features 112 affordable apartments, including 55 with support services for seniors and veterans. The apartments are available to households with incomes at or below 80% of the area’s median income.
PUSH Buffalo: Buffalo, NY
PUSH Buffalo’s affordable apartments, West Side Homes, was awarded NYSERDA’s Building of Excellence designation. The project will bring 49 affordable rental apartments to West Buffalo, with BestSelf Behavioral Health providing supportive services for up to 16 households.
Maximizing Solar Incentives for Developers
Affordable housing projects can leverage substantial financial benefits by going solar. Available incentives include:
- 30% Investment Tax Credit (no cap!)
- Direct pay is available for tax-exempt organizations and state, local, or tribal government.
- Transferable tax credit
- Solar plus storage projects are eligible, as is a standalone storage
- Bonus Tax Credits for Low-Income Projects:
- Additional 10% tax credit for projects located in a low-income community
- 20% tax credit for projects located in a qualifying low-income residential building project or a low-income economic benefit project
- 10% tax credit for meeting domestic production requirements
- 10% credit for projects in “energy communities” (brownfields or fossil fuel-reliant areas).
- Equipment Depreciation: Bonus, or accelerated depreciation, allows companies to capture 100% of the depreciation benefit in year one.
- NYSERDA Solar for Multifamily Buildings: To be eligible, Multifamily affordable housing properties must be regulated.
- NYSERDA Net-Zero Building Incentives: Supports new construction projects designed to meet net-zero goals.
The ROI of Solar for Affordable Housing Developments
When you invest in solar energy, you unlock significant savings:
- Typical ROI exceeds 15-20%.
- Incentives cover 80-90% of project costs.
- Reduced operating expenses free up capital for reinvestment in your properties.
Ready to learn more? View our guide to building with solar in mind or explore our affordable housing solutions page.
Why Now is the Time to Act
With new policies like the All-Electric Buildings Act and increased funding through the IRA, solar is no longer a “nice to have”—it’s a necessity for affordable housing developers looking to stay competitive and sustainable. Take the first step toward energy independence and resilience today.
