While using power from your local utility company your meter spins forward generating the basis for creating your bill, kilowatt hour usage.  When you over produce energy from solar panels connected to the utility grid (not stored in a battery), your meter actually spins backwards and generates a credit on your bill from the utility company.  This is referred to as selling back or Net Metering.

 
Solar systems are made up of three components; the PV panels or modules, the inverter and the electric meter.

• Solar Modules - produce “DC” (direct current) electricity when exposed to sunlight.
• Inverter - Converts the “DC” to “AC” (alternating current) electricity that is usable in your home and protects the homeowner and utility company from unsafe operating conditions.
• Meter -  Records the net amount of electricity that the customer purchases from the utility company.
   

 
Residential - LIPA

Up to $37,500 in rebates, non taxable
State personal income tax credits up to $5,000
Federal tax credit up to $2,000
Savings up to $44,500 on a 10 kw system
Increases selling value of your home
No sales or property taxes assessed
Non Profit organizations, schools & churches save $47,500.

Business – LIPA

30% Federal tax credit (not deduction) of net costs with no cap
Accelerated 100% depreciation
$37,500 LIPA rebate, non taxable