As New York City accelerates its push toward sustainability, solar energy is rapidly becoming a focal point for developers and architects across the five boroughs. With the city’s local laws mandating solar installations on new buildings and major renovations, solar energy is no longer a choice – it’s a necessity for those looking to stay compliant and competitive in the NYC real estate market.
Recognizing this shift, developers and architects are turning to Brooklyn SolarWorks as the preferred partner to navigate the complexities of solar integration, ensuring their projects not only meet regulatory requirements but also maximize energy efficiency and property value.
Brooklyn SolarWorks has emerged as a leader in the NYC solar industry, completing over 2,000 residential and commercial solar installations since its founding in 2015. With their newly launched Specialty Projects division, they’re offering comprehensive solutions that align with the city’s mandates and provide architects and developers with the expertise and support needed to integrate solar energy into their projects. The Real Deal spoke with the Brooklyn SolarWorks team to learn more about why NYC developers are embracing solar power.
Local Laws Mandate Solar & Energy Efficiency
New York City’s local laws are fundamentally reshaping the landscape of sustainable development, making it essential for developers to incorporate solar energy in their projects.
Local Laws 92 and 94 are particularly pivotal, requiring the installation of solar panels or green roofs on all new buildings and during major roof renovations. Passed by the City Council in 2019 and added to NYC building code in 2022, architects and developers must meet this requirement if they want their projects to move forward in NYC.
“Local Laws 92 and 94 made it so that solar isn’t just an eco-friendly choice for developers, but a necessity for doing business in the city,” Sean Velez, Project Developer at Brooklyn SolarWorks said.
The city’s ban on gas heating in all new buildings under seven stories, effective January 1, 2024, further underscores the need for solar energy. “Electric heating and appliances mean higher operating costs for building owners,” Velez said. “But powering your HVAC systems with solar helps offset a lot of those additional costs.”
Additionally, Local Law 97 enforces energy efficiency measures by setting stringent carbon emissions limits for large buildings. Limits and penalties vary depending on building type, but the worst polluters could see fines of over $1,000,000 per year if they fail to comply.
Solar power can be a vital tool in helping developers meet these requirements. By generating clean energy on-site, solar systems significantly offset a building’s emissions and can help owners avoid future penalties. According to the law, installing solar will reduce penalties by around 7.7 cents per kilowatt-hour from 2024 to 2029, and about 3.9 cents per kilowatt-hour from 2030 on.
For developers, integrating solar energy into new developments not only meets regulatory requirements and avoids penalties, but also enhances the value and appeal of their properties in a market increasingly focused on sustainability.
The Benefits of Solar Energy
As New York City intensifies its commitment to sustainability, developers are increasingly incentivized to incorporate solar energy into their projects. The city’s ambitious climate goals have made sustainable building practices not just desirable, but necessary.
In 2023, the City Council passed the Mayor’s “City of Yes for Carbon Neutrality” initiative, which modernized zoning laws and has further opened the door for developers to integrate solar power into their designs more seamlessly. With the new regulations relaxing coverage and setback restrictions for rooftop solar installations, huge swaths of real estate which were not previously viable for solar development have been made available – in some cases as much as doubling the square footage available on one rooftop. In addition, the law allows for solar canopies to be installed over the city’s 8,500 acres of parking lots.
“City of Yes was an important moment in the city’s efforts to support carbon neutrality,” Steve Nelson, VP of Sales and Marketing at Brooklyn SolarWorks, said. “The removal of the zoning restrictions opened up a lot of areas in Brooklyn and Queens that we haven’t been able to build sufficient systems in or build in at all.”
Incorporating solar power can significantly enhance the marketability of a development. Buyers and tenants are increasingly seeking energy-efficient homes and offices, and a building powered by renewable energy can command higher property value. The appeal of lower utility costs and a reduced carbon footprint makes solar-powered properties more attractive in a competitive market.
A study done by Zillow in 2019 found that, on average, homes with solar panels in NYC sell for 5.4% more than comparable homes without them. This translated to an additional $37,800 on the median home sale price.
Additionally, the National Renewable Energy Laboratory estimates that property value increases by $20 for every $1 saved on electricity bills. Electricity rates in NYC are high, and they continue to increase every year. “With solar powering your property, you’ll avoid any future rate increases and your energy costs become much more predictable,” Nelson said.
Moreover, developers can capitalize on a variety of financial incentives provided by the federal, state and city governments. Property owners can claim income tax credits and rebates from New York State, as well as a property tax abatement from the city. When combined with the Federal Solar Income Tax Credit, the cost of an installation can be offset by 75% or more. These incentives, combined with the long-term benefits of energy savings, make solar power a smart choice for developers looking to maximize their returns.
Designing with Solar in Mind
When designing new developments or renovations with solar energy in mind, developers and architects must consider several factors that can significantly impact the feasibility and efficiency of solar installations.
The size of a building directly influences its energy consumption. Larger buildings, especially commercial properties, typically require a lot of electricity to power their operations. Consequently, these buildings need larger solar installations to meet their energy demands effectively.
Because of this, roof layout is crucial. “New York City building and fire code is restrictive when it comes to solar, enforcing setbacks, fire paths, and in some cases, safety railings,” Cait Eggers, Senior Project Architect at Brooklyn SolarWorks said. “The layout of objects on the roof – including HVAC equipment, skylights, hatches, and decking – needs to accommodate these regulations while allowing space for solar panels.” The fewer panels the roof can accommodate, the less power and savings the system will generate.
Similarly, electrical setup is another vital consideration. Solar power requires particular electrical infrastructure that’s easiest to integrate with the existing electrical system while the building is still under construction.
The best way to address these concerns is to get the team at Brooklyn SolarWorks involved as early in the project as possible. “Communication early on gives us more options for solar integration, which means larger, more productive systems,” Eggers said. “It also helps us avoid any additional costs associated with reconfiguring the roof or electrical system.”
Throughout the project, Eggers and the Specialty Projects team work directly with any electricians, HVAC technicians, and other contractors to ensure the roof and electrical system is ideal for solar.
As a result of restrictive building and fire code, obtaining permits from necessary authorities is a complex process. For any given solar installation, approvals from the NYC Department of Buildings, the FDNY, Con Edison and NYSERDA must be obtained. On top of that, solar installations on historic and landmarked properties must also meet the preservation standards of the New York State Office of Parks, Recreation and Historic Preservation and the NYC Landmarks Preservation Commission. The permitting process can take anywhere from two to four months depending on the size and complexity of the installation.
However, obtaining permits for solar is not a concern for partners of Brooklyn SolarWorks. “Our years of experience and deep understanding of local permitting regulations allows us to streamline the application process,” Eggers said. “We’re engaging with local agencies on a daily basis to make sure we’re always up to date on the latest requirements, which allows us to submit well-prepared applications.” Their in-house permitting team takes care of every aspect of the process, from permit applications and landmarks surveys to final inspections and approvals, ensuring that the system is operational and compliant.
Streamlined Solar Integration
Brooklyn SolarWorks knows that there’s a lot to consider when it comes to solar – local laws, permits, and more – but their Specialty Projects team handles it all. “We don’t just work on your project; we become a part of your team,” Eggers said.
Unlike other contractors who may add to your workload, they manage every aspect of the solar installation from start to finish. Their involvement begins early in the planning stages and continues through to final inspections, ensuring a smooth, efficient process that aligns with your timelines and goals. This means you can focus on managing your project while they ensure that the solar installation meets all the necessary requirements and provides optimal energy production.
“We really encourage developers, architects and general contractors to get in touch with us as soon as possible,” Velez said. “Getting us involved early on means reduced costs and peace of mind throughout the process.”
By partnering with Brooklyn SolarWorks, you can confidently integrate solar into your projects, meet regulatory demands, enhance property value, and contribute to a sustainable future. Learn more about their work on renovations and construction projects by visiting their website.