New York Releases Draft 2024 Solar and Wind Valuation Model for Public Review

The New York State Department of Taxation and Finance (DOTF) has released a draft of the 2024 solar and wind valuation model for public review and comment. This model is mandatory for assessing wind and solar systems over 1 MW AC, according to Real Property Tax Law § 575-b.

The proposed changes in the draft 2024 model include the incorporation of net energy metering projects, updated discount rates, revenue forecasts, and expense forecasts. The discount rates are based on the weighted average cost of capital (WACC), with separate categories for solar and land-based wind projects. The draft 2024 model also considers inflation as a proxy for growth in the development of the WACC.

The draft 2024 model can be viewed on the DOTF’s website, along with the updated instructions and formulas used. Public comments on the model are being accepted until February 27, 2024. After the comment period, the DOTF will make any necessary changes, publish the final model, and discount rates for assessors to use in valuing solar and wind energy systems for the next tax assessment cycle.

The industry experts at Ryan will continue to monitor the new model as it progresses and are available to answer questions. Ryan’s Complex Property Tax team has unmatched experience and is uniquely positioned to help renewable energy organizations understand the complexities of multiple tax jurisdictions and their different approaches to valuing and assessing renewable energy property types.

Our team has produced the most comprehensive interactive map backed by extensive jurisdictional research, local knowledge, and relationships in the industry, showcasing valuation methodologies used by the assessing authorities.