Affordable housing developers are being asked to do more than ever before.
In addition to delivering much-needed housing, project teams are navigating rising construction costs, increasing utility rates, building electrification requirements, and growing expectations around sustainability and building performance. As a result, energy strategy is becoming an increasingly important part of affordable housing project planning.
Solar can help address several of these challenges at once. When thoughtfully integrated into a project, solar can reduce operating expenses, support long-term affordability goals, improve building resilience, and create meaningful value for both property owners and residents. And while the incentive landscape continues to evolve, New York developers still have access to a variety of programs that can support solar and battery storage projects.
Whether you’re planning a new development or evaluating opportunities for an existing property, understanding how solar fits into your project’s financial and operational goals is a good place to start.
Table of Contents
Why Solar Makes Sense for Affordable Housing
For many affordable housing developers, the choice to integrate a commercial solar energy system starts with a simple goal: lowering long-term costs. But the benefits often extend much further.
When paired with a thoughtful building design, solar can:
- reduce operating expenses
- improve budget predictability
- free up capital for other building investments
- create additional value for residents
- support sustainability goals
Solar can also support broader project goals around electrification and building performance. As New York continues to advance policies to reduce building emissions and encourage more efficient, all-electric construction, many developers are incorporating solar into a broader strategy to better prepare their properties for the future while improving long-term economics.
Perhaps most importantly, solar creates an opportunity to generate value from space that is often underutilized. Rooftops that would otherwise sit idle can become long-term energy assets, helping offset utility costs for years to come.
From stronger project economics to resident affordability and resilience, solar has become an increasingly valuable tool in the affordable housing developer’s toolbox.
How Solar Supports Affordable Housing Project Economics
For affordable housing developers, solar isn’t just a sustainability initiative. It’s a tool for managing one of the largest and most unpredictable operating expenses: energy.
When solar offsets electricity used in common areas, leasing offices, community spaces, exterior lighting, elevators, and building systems, owners can reduce utility expenses and create more predictable operating budgets over the long term.
Those savings can have a meaningful impact over the life of a building. Lower operating costs can contribute to stronger property performance, improved net operating income (NOI), and greater long-term financial stability. At a time when developers are facing rising construction costs, insurance premiums, and utility rates, controlling energy expenses can help protect project economics well beyond initial occupancy.
How Solar Supports Resident Affordability
Energy affordability is an increasingly important part of housing affordability.
For residents, utility costs can represent a significant share of monthly housing expenses. Whether solar directly benefits tenants through individual meter configurations or indirectly supports affordability by reducing building operating costs, lowering energy expenses can help reduce the overall cost burden associated with housing.
The benefits extend beyond utility savings alone. By helping control operating costs and improve building resilience, solar can contribute to more stable, sustainable communities over time. For affordable housing developers, that’s often the ultimate goal: creating housing that remains affordable, high-performing, and responsive to residents’ needs for years to come.
Why More Affordable Housing Developers Are Exploring Solar + Storage
Solar remains one of the most effective ways to reduce long-term energy costs, but increasingly, developers are asking a bigger question:
How can we make our buildings more resilient, too?
That’s where battery energy storage systems come into the conversation.
When paired with solar, battery systems can store energy for use when it’s needed most. For affordable housing properties, that could mean supporting critical building functions during an outage, reducing reliance on the grid during peak demand, or creating additional flexibility as energy needs evolve over time.
Every property’s needs are different, but for developers planning new construction or major renovations, solar and commercial battery energy storage are increasingly being evaluated together rather than as separate investments. The result can be lower operating costs, greater energy flexibility, and a more resilient building for the people who call it home.
Solar & Storage Funding Opportunities for Affordable Housing in New York
If you’ve been following clean energy incentives for affordable housing, you’ve probably noticed a lot has changed. While some federal opportunities are winding down or becoming more time-sensitive, there are still several state programs, funding sources, and technical assistance resources available for developers exploring solar and battery storage.
Whether you’re planning a new development or evaluating opportunities for an existing property, understanding the available funding landscape early can help you make smarter design and financial decisions from the start.
Program | Administered By | Funding / Benefit | Who May Qualify | Timing Consideratons |
NYSERDA | Financial incentives for on-site solar installations at multifamily properties, including additional support opportunities for affordable housing developments. | Existing and new multifamily properties, including regulated affordable housing development. | Incentive levels vary by region and available funding blocks. Earlier planning may provide access to greater available funding. | |
New York State Homes and Community Renewal (HCR) | Direct financial assistance for on-site solar PV systems to help reduce long-term operating expenses and support project economics. | Select affordable housing developments within HCR funding pipelines, including eligible 9% LIHTC, 4% LIHTC, and subsidy-supported projects. | Available funding is awarded while program funds remain available. Teams should engage during project design and financing stages. | |
NYSERDA | Per-kWh incentives for qualifying battery energy storage systems, including projects paired with solar. Enhanced incentives are offered for affordable housing disadvantaged-community projects. | Commercial and multifamily projects with battery storage systems up to program limits. | Incentives are block-based and vary by utility territory. Early evaluation is recommended. | |
Affordable Solar & Storage Predevelopment Technical Assistance | NYSERDA | Up to $200,000 in technical assistance and predevelopment support for qualifying community-focused solar and storage projects. | Projects benefitting low-to-moderate-income households and disadvantaged communities. | Best utilized during early project planning, feasibility analysis, and design phases. The deadline for applications is December 31, 2029. |
New York State Homes and Community Renewal (HCR) | Free project-level solar feasibility analysis, preliminary layouts, financial modeling, incentive screening, and technical support. | Affordable housing developers evaluating solar during project planning and predevelopment. | Most valuable when incorporated early in project design, before major engineering decisions are finalized. | |
Internal Revenue Service (IRS) | 30% Federal tax credit that has historically helped offset a portion of project costs for qualifying solar and energy storage projects. | Eligibility depends on project timing, structure, and current federal requirements. | Projects must be completed and placed in service by December 31, 2027 to remain eligible. | |
IRS | Can provide a 10% or 20% bonus above the underlying federal tax credit if awarded. | Certain qualifying low-income residential building projects and economic benefit projects under federal program criteria. | Competitive allocation program with annual application windows and capacity limitations. Only applicable where the underlying federal credit remains available. | |
U.S. Department of the Treasury | Additional federal bonus credit for eligible projects located within designated Energy Communities. | Projects located in qualifying Energy Community census tracts or other eligible geographies. | Requires site-specific eligibility verification and depends on underlying federal tax credit eligibility. |
Why you Should Start the Conversation Early
The biggest opportunity today isn’t necessarily finding affordable housing solar incentives. It’s evaluating them early enough in the development process to make the most of what’s available. As funding programs, tax credits, and project timelines continue to shift, early planning can have a meaningful impact on both project economics and long-term building performance.
If you’re considering solar, battery storage, or all-electric design strategies for an upcoming affordable housing project, now is the time to start the conversation.
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 in Utica, NY
The Johnson Park Green Community Apartments in Utica, NY are powered by solar energy. GreenSpark Solar installed four commercial rooftop solar energy systems totaling 158 kW across four buildings to help deliver climate-friendly homes for residents and significant financial savings for JPC.
Tailor Square in Rochester, 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 in 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.
Playter Gardens in Buffalo, NY
This 73-unit affordable housing development is bringing new housing and supportive services to Buffalo’s Broadway-Fillmore neighborhood. GreenSpark’s 59.65 kW solar system is projected to generate 65,561 kWh annually, helping reduce operating costs and support long-term affordability.
Considering solar or battery storage for your affordable housing project? Let's talk.
Our team works with developers, architects, housing agencies, and project partners across New York to evaluate solar potential, available funding opportunities, and long-term energy savings. Whether you’re in early design or preparing for construction, we’re happy to help you understand what’s possible and what programs may still apply to your project.