Energy bills are constant reminders that electricity rates continue to rise even faster than prices of other essential commodities and services. New York homeowners who want to save on energy costs may wish to consider installing solar panels to produce free, clean energy for their homes should review their New York home insurance policies to ensure that they are fully covered. 

Rebates and incentives are currently available to reduce the cost of home PV installations and among the benefits offered by the state of New York is a 25% tax credit. Homeowners in New York who have installed grid-connected solar power systems receive further financial benefits because the utility customer is billed for the net electricity – the kilowatt hour difference between the electricity the home consumes from the grid and the power generated by the home system. This net metering arrangement means that the user receives the full retail rate rather than the lower wholesale rate for surplus electricity generated by the home system that is fed into the grid.   

New York homeowners currently pay some of the highest retail electricity rates in the country and are likely to find that net metering credits help to recoup the cost of a solar power system within a few years.  A home PV system that feeds into the electricity grid usually requires a householder and utility provider to enter into an interconnection agreement. Insurance for the PV installation is likely to be among the requirements of an interconnection agreement, so New York homeowners who are considering switching to solar power should read the terms of their New York home insurance policies to ensure that they comply with the utility company’s conditions.