Residential customers of Long Island Power Authority (LIPA) are eligible for rebates covering 50 percent up to $17,500 of the cost of solar panels through the Solar Rebate Program. The rebate is paid at $1.75 per annual kilowatt-hour and is given in two stages. One upfront payment covers 60 percent of the cost and the last 35 percent is distributed a year after installation based on actual performance.

NYSERDA offers the ENERGY STAR Financing Program with low-interest loans up to $20,000. The terms available are three, five, seven or 10 year payback periods. The payments are made directly to the contractors to pay for the work. Additionally, NYSERDA offers rebates up to $12,250 for grid-connected solar panel systems at $1.75/watt of capacity.

New York offers a state income tax credit equal to 25 percent of the costs for solar installations up to $1,500. To qualify for this income tax credit, you’ll need to fill out a current IT-255 tax form to claim your credit on your 2010 returns.

Finally, the federal government offers a tax credit designed to cover 30 percent of the cost solar panel installations. There is no upper limit and unused credit can be carried forward through 2016.