State financial incentives are an important instrument for increasing the use of technologies that provide benefits to both residents and the state overall. In California, the Self-Generation Incentive Program (SGIP) projects have an incentive of $440/KW. Applicable systems receive 50% on startup and the remainder in equal installments over five years. It costs about $35,000 to set up the SGIP metering and administration; unless 100 KW in installed, it’s likely not worth it.
SGIP in New York
Compare these SGIP incentives to those in New York, where in the Upstate areas incentives are $0.10/kWh (electricity generation) + $600/kW (peak demand reduction), and $0.10/kWh + $750/kW in the Downstate areas. A taxpayer investing in CHP systems may claim a tax credit for 10% of expenses incurred on property up to a maximum of $200/kW of capacity, available for systems up to 2 MW in size, with electric only operating efficiencies of 26% or greater. Systems with a minimum capacity of 0.5 kW and efficiencies of 30% or higher are eligible for a 30% ITC for qualifying systems (capped at $3,000/kW for systems after 2005).
To see if your system qualifies for tax benefits, please visit www.winwerskipd.com and contact us today.