Solar Guidebook for Local Governments
NYSERDA 17 Columbia Circle Albany, NY 12203
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Solar Payment-In-Lieu-
Of-Taxes (PILOT)
Assisting New York State municipalities considering PILOT agreements
for community solar projects larger than one megawatt.
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Section Content
1. Community Solar .............................131
2. Real Property Tax Law (RPTL) § 487 .............131
3. Solar PILOT Toolkit ...........................132
3.1 The Model Solar PILOT Law ................ 132
3.2 The Model Solar PILOT Agreement.......... 132
3.3 The Solar PILOT Calculator ..................133
4. New York Model Solar Energy System
PILOT Law ...................................134
5. Model Solar PILOT Agreement for
a Single Jurisdiction ..........................136
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Overview
The following toolkit is for local governments in New York State who are
considering a payment-in-lieu-of-taxes (PILOT) agreement for solar projects larger
than one megawatt (MW). We provide resources for local governments to gain more
information on PILOT agreements. A few notable resources within the toolkit are
the New York Model Solar Energy PILOT Law, Model Solar PILOT Agreement for a
single jurisdiction, and the PILOT calculator for taxing jurisdictions, which can be
accessed here and under the PILOT toolkit section below.
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1. Community Solar
In addition to residential, commercial, and municipal projects, a relatively new kind of solar project, “community solar,” has
emerged as an ecient and aordable way for all New Yorkers to gain access to clean energy. Community solar projects are
much larger, typically in the 2-5MW range and allow individuals (including renters and others who cannot install a system on
their own roof) to purchase individual panels or some fraction of the electricity the entire system generates. These customers
receive credits for this electricity on their monthly utility bills.
A community solar project brings revenues and benefits to a community and its residents in several ways. The owner of a
project site will typically lease land to the solar company in return for lease payments. Community solar customers, which may
include municipalities, businesses, and residents, save money on their utility bills. Taxing jurisdictions can benefit from PILOT
payments. At the same time, given the passive nature of a solar array, a solar project does not create increased demands on
municipal services and infrastructure.
2. Real Property Tax Law (RPTL) § 487
As a measure to promote the installation of clean energy sources, the New York State legislature adopted a section of the
RPTL § 487 that exempts the value of a solar panel system from local property taxes.
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Under the law, any increase in the
property value attributable to the addition of the solar panel system is exempt from property tax. The RPTL § 487 exemption
has been a cornerstone of the State’s eorts to meet its clean energy goals, providing essential economic incentives for solar.
The law does, however, allow any taxing jurisdiction (town, school, etc.) to “opt-out” of the tax exemption by adopting a local
law or resolution, making the added value of a solar panel system fully taxable. Alternatively, a taxing jurisdiction that does
not opt-out can require a solar developer to pay an annual fee or “payment- in-lieu of taxes” as a replacement for the taxes it
would have otherwise collected. Under the law, PILOT amounts cannot exceed what the tax amount would have been without
the exemption. Additionally, the law does not allow jurisdictions to partially opt out of the law to generate tax revenue from
large solar projects while exempting the small systems of homeowners. Opting out of RPTL § 487 makes community solar
projects financially unviable and makes homeowners’ rooftop systems more expensive.
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The terms “taxing jurisdictions” and “jurisdictions” include counties, cities, towns, villages and school districts.
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New York State Real Property Tax Law § 487 provides a 15-year real property tax exemption for properties located in New York State with renewable energy
systems, including solar electric systems. The law applies only to the value that a solar electric system adds to the overall value of the property; it does not
mean that landowners with an installed renewable energy system are exempt from all property tax. Local governments have the option to opt out of RPTL
§ 487 and tax solar projects at the full property tax rate, but doing so can impact project economics in a way that unintentionally prohibits developers from
building projects. For more information on RPTL § 487, see Understanding New York State’s Real Property Tax Law § 487 fact sheet. A local government
that does not opt out of RPTL § 487 can still generate revenue through PILOT agreements.
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NYSERDA understands that many communities have little or no experience with solar PILOT agreements or with assessing
the value of large-scale solar projects. Information is dicult to obtain by consulting other communities because few
communities have completed large-scale solar projects.
Two common questions have arisen from New York State municipal ocials and other interested parties:
(1) If we do not opt-out and seek a PILOT, what is a fair PILOT amount based on what projects can aord?
(2) What are the steps to negotiate a successful PILOT agreement?
The answer to the first question is complicated, as PILOTs are often negotiated for individual projects, and the PILOT amount
a project can aord depends on many factors, including construction and maintenance costs, and the amount of revenue
from electricity sales. From the point of view of solar developers, if the PILOT amount is too high, they will not be able to make
the project economically feasible and will not proceed. So, the amount of revenue available for a PILOT is dependent on the
overall project economics. The first question then becomes, “What PILOT amount will allow the jurisdiction and its residents to
enjoy the benefits of the project, but will not make the project financially unviable and unattractive to a developer?”
NYSERDA’s research indicates that PILOT rates should be negotiable between 1% and 3% of the compensation solar
developers receive for the electricity their projects generate.
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This research includes an independent analysis of current
solar market data and an analysis of solar project compensation rates established under the preliminary value stack in the
New York Public Service Commission’s March 2017 Value of Distributed Energy Resources (VDER) order. The new solar
energy compensation methodology will likely reduce project revenue. NYSERDA will review and update its PILOT guidance
regularly; taxing jurisdictions are encouraged to adjust their PILOT rates accordingly.
NYSERDA oers the Solar PILOT Toolkit as a resource to help municipalities and solar developers negotiate successful PILOT
agreements. The following describes the Toolkit’s contents.
3. Solar PILOT Toolkit
3.1 The Model Solar PILOT Law
The Model Solar PILOT Law, or resolution, provides a sample template for jurisdictions that wish to establish the legal
authority to implement a formulaic, jurisdiction-wide PILOT agreement process with solar developers. The model law cites
the appropriate laws to do so and includes blank fields for jurisdictions to fill in. The model law exempts projects smaller than
1 MW AC as the amount of PILOT revenue may not justify the cost of negotiating the PILOT.
3.2 The Model Solar PILOT Agreement
Only jurisdictions that do not opt out of RPTL § 487 may enter PILOT agreements. The Model Solar PILOT Agreement
provides a draft contract that jurisdictions can sign with solar developers. The agreement can be tailored to meet a
jurisdiction’s specific needs and includes blank fields for the jurisdiction to fill in. Jurisdictions may negotiate PILOT rates with
solar developers on a project-by-project basis or may adopt a jurisdiction-wide rate for certain types of solar panel systems,
typically in the form of annual payments based on a dollar-per-MW rate.
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NYSERDA continuously assesses market data and Public Service Commission proceedings and may revise this Toolkit when appropriate.
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3.3 The Solar PILOT Calculator
The Solar PILOT Calculator can be accessed here.
This tool provides PILOT rate guidance for solar projects and includes two separate calculators.
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Calculator One should be
used to set a uniform PILOT rate across an entire jurisdiction.
The following table displays sample PILOT rates generated by Calculator One for a 2-MW AC community solar project in each
utility service territory. The “Low” and “High” rates represent 1% and 3% of the compensation solar developers receive for
the electricity their projects generate. NYSERDA’s research of solar project economics across the State indicates that such
projects should be able to aord rates within this range.
Low
($/MW AC)
High
($/MW AC)
Central Hudson $2,600 $7,600
Orange & Rockland $3,200 $9,500
National Grid $1,700 $5,100
NYSEG $1,700 $5,000
Con Edison $3,700 $11,100
Rochester Gas & Electric $1,700 $5,000
Calculator Two should be used to set PILOT rates on a project-by-project basis. It is highly customizable, taking into account
extensive project-specific data and all factors aecting solar project economics. Users may accept the default values but are
encouraged to enter project-specific data. Calculator Two estimates PILOT rates based on the net present value of a project’s
unlevered cash flow that achieves a specified pre-tax internal rate of return.
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Each calculator’s outputs reflect the sum total of all PILOT payments, property taxes from taxing jurisdictions which have opted-out of the exemption, and
special district taxes (which are not exempt under RPTL § 487).
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4. New York Model Solar
Energy System PILOT Law
§1. Title
This Local Law [if for a school district, change “Law” to “Resolution” throughout this document] may be cited as the “Solar Energy
System PILOT Law of the [Village/Town/City/County/School District] of , New York.”
§2. Purpose
This Local Law [Resolution] is adopted to ensure that the benets of the community’s solar energy resource are available to the entire
community, by promoting the installation of solar energy generating equipment through a payment-in-lieu-taxes (PILOT), granting
reduced costs to system developers and energy consumers, and providing a revenue stream to the entire community.
§3. Authority [IF MUNICIPALITY]
This Local Law is adopted under the authority granted by
1. Article IX of the New York State Constitution, §2(c)(8),
2. New York Statute of Local Governments, § 10 (5),
3. New York Municipal Home Rule Law, § 10 (1)(i) and (ii) and §10 (1)(a)(8), and
4. New York Real Property Tax Law § 487(9).
§3. Authority [IF SCHOOL DISTRICT]
This Resolution is adopted under the authority granted by New York Real Property Tax Law § 487(9).
§4. Denitions
1. “Annual Payment” means the payment due under a PILOT Agreement entered into pursuant to Real Property Tax Law § 487(9).
2. “Annual Payment Date” means January 1st of each year [September 1st for school districts].
3. “Capacity” means the manufacturer’s nameplate capacity of the Solar Energy System as measured in kilowatts (kW) or megawatts
(MW) AC.
4. “Owner” means the owner of the property on which a Solar Energy System is located or installed, or their lessee, licensee or other
person authorized to install and operate a Solar Energy System on the property.
5. “Residential Solar Energy Systems” means a Solar Energy System with a nameplate generating capacity less than 50 kW AC in size,
installed on the roof or the property of a residential dwelling (including multi-family dwellings), and designed to serve that dwelling.
6. “Solar Energy Equipment” means collectors, controls, energy storage devices, heat pumps and pumps, heat exchangers, windmills,
and other materials, hardware or equipment necessary to the process by which solar radiation is (i) collected, (ii) converted into
another form of energy such as thermal, electrical, mechanical or chemical, (iii) stored, (iv) protected from unnecessary dissipation
and (v) distributed. It does not include pipes, controls, insulation or other equipment which are part of the normal heating, cooling,
or insulation system of a building. It does include insulated glazing or insulation to the extent that such materials exceed the energy
efciency standards required by New York law.
7. “Solar Energy System” means an arrangement or combination of Solar Energy Equipment designed to provide heating, cooling, hot water,
or mechanical, chemical, or electrical energy by the collection of solar energy and its conversion, storage, protection and distribution.
§5. PILOT Required
1. The owner of a property on which a Solar Energy System is located or installed (including any improvement, reconstruction, or
replacement thereof), shall enter into a PILOT Agreement with the [Village/Town/City/County/School District] consistent with the
terms of this Local Law [Resolution], except for
a) Residential Solar Energy Systems
b) Solar Energy Systems that do not seek or qualify for an exemption from real property taxes pursuant to Real Property Tax Law
§ 487(4).
The workable version of this document can be found at nyserda.ny.gov/SolarGuidebook, under the PILOT tab.
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2. The Lessee or licensee of any owner of a property required to enter into a PILOT Agreement by this section, which owns or controls
the Solar Energy System, may enter into the PILOT Agreement on behalf of the owner of the property.
3. Upon receipt of any notication from an owner or other person of intent to install a Solar Energy System, the [title of appropriate
ofcial, e.g., Town Supervisor, Superintendent, Building Inspector] shall immediately, but in no case more than sixty days after
receipt of the notication, notify the owner or other person of the mandatory requirement for a PILOT Agreement pursuant to the
terms of this Local Law [Resolution].
4. Nothing in this Local Law [Resolution] shall exempt any requirement for compliance with state and local codes for the installation
of any solar energy equipment or a solar energy system, or authorize the installation of any solar energy equipment or a solar energy
system. All solar energy systems must le a Real Property Tax Exemption application pursuant to Real Property Tax Law § 487 to
receive a tax exemption.
§6. Contents of PILOT Agreements
1. Each PILOT Agreement entered into shall include
a) Name and contact information of the Owner or other party authorized to act upon behalf of the Owner of the Solar Energy
System.
b) The SBL number for each parcel or portion of a parcel on which the Solar Energy System will be located.
c) A requirement for fteen successive annual payments, to be paid commencing on the rst Annual Payment Date after the
effective date of the Real Property Tax Exemption granted pursuant to Real Property Tax Law § 487.
d) The Capacity of the Solar Energy System, and that if the Capacity is increased or increased as a result of a system upgrade,
replacement, partial removal or retirement of Solar Energy Equipment, the annual payments shall be increased or decreased on a
pro rata basis for the remaining years of the Agreement.
e) That the parties agree that under the authority of Real Property Tax Law § 487 the Solar Energy System shall be considered
exempt from real property taxes for the fteen- year life of the PILOT Agreement.
f) That the PILOT Agreement may not be assigned without the prior written consent of the [Village/Town/City/County/School
District], which consent may not be unreasonably withheld if the Assignee has agreed in writing to accept all obligations of the
Owner, except that the Owner may, with advance written notice to the [Village/Town/City/County/School District] but without
prior consent, assign its payment obligations under the PILOT Agreement to an afliate of the Owner or to any party who has
provided or is providing nancing to the Owner for or related to the Solar Energy System, and has agreed in writing to accept all
payment obligations of the Owner.
g) That a Notice of this Agreement may be recorded by the Owner at its expense, and that the [Village/Town/City/County/School
District] shall cooperate in the execution of any Notices or Assignments with the Owner and its successors.
h) That the Annual Payment shall be
i) For Solar Energy Systems with a Capacity greater than 1 MW and less than 5MW, $ per MW of Capacity.
ii) For Solar Energy Systems with a Capacity greater than 5MW will be determined on a case by case basis.
i) That the Annual Payment shall escalate percent ( %) per year, starting with the second Annual Payment.
j. That if the Annual Payment is not paid when due, that upon failure to cure within thirty days, the [Village/Town/City/County/
School District] may cancel the PILOT Agreement without notice to the Owner, and the Solar Energy System shall thereafter be
subject to taxation at its full assessed value.
§7. Severability
Should any provision of this Local Law [Resolution] be declared by the courts to be unconstitutional or invalid, such decision shall not affect
the validity of this Local Law [Resolution] as a whole or any part thereof other than the part so decided to be unconstitutional or invalid.
§8. Effective Date
This Local Law [Resolution] shall be effective upon its ling with the Secretary of State in accordance with the Municipal Home Rule
Law, and shall apply to all solar energy systems constructed.
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5. Model Solar PILOT Agreement
for a Single Jurisdiction
PAYMENT IN LIEU OF TAXES AGREEMENT
FOR SOLAR ENERGY SYSTEMS
between
[NAME OF TAXING JURISDICTION]
and
[NAME OF OWNER]
Dated as of , 2017
RELATING TO THE PREMISES LOCATED AT
(TAX MAP ) IN THE (TOWN/COUNTY/VILLAGE,
COUNTY, NEW YORK.
The workable version of this document can be found at nyserda.ny.gov/SolarGuidebook, under the PILOT tab.
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PAYMENT IN LIEU OF TAXES AGREEMENT
FOR SOLAR ENERGY SYSTEMS PURSUANT TO REAL PROPERTY TAX LAW § 487
THIS AGREEMENT FOR PAYMENT IN LIEU OF TAXES FOR REAL PROPERTY, effective as of the date on the cover page,
above, by and between [ENTER OWNER NAME] (the “Owner”), a Owner, with a principal place of business located at
[ENTER ADDRESS]; and [choose ONE as appropriate]
the [ENTER SCHOOL DISTRICT NAME], (the “School District”), a school district duly established with a principal place of
business located at [ENTER ADDRESS];
the [Village/Town/City] of , New York, (the “Town”), a municipal corporation duly established in County
with a principal place of business located at [ENTER ADDRESS];
the County of , New York, a municipal corporation duly established with a principal place of business located at
[ENTER ADDRESS] (the “County”);
the School District/Town/County is herein referred to as the “Taxing Jurisdiction.” Owner and the Taxing Jurisdiction are collectively
referred to in this Agreement as the “Parties” and are individually referred to as a “Party.”
RECITALS
WHEREAS, Owner has submitted a Notice of Intent to the Taxing Jurisdiction that it plans to build and operate a “Solar
Energy System” as dened in New York Real Property Tax Law (“RPTL”) Section 487 (1)(b) (herein the “Project”) with an expected
nameplate capacity (“Capacity’’) of approximately Megawatts AC on a parcel of land located within the Village/Town/City at
and identied as SBL # , as described in Exhibit A (herein the “Property”); and;
WHEREAS, the Taxing Jurisdiction has not opted out of RPTL Section 487; and WHEREAS, pursuant to RPTL Section 487 (9)
(a), the Taxing Jurisdiction has indicated its intent to require a Payment in Lieu of Taxes (“PILOT”) Agreement with the Owner, under
which the Owner (or any successor owner of the Project) will be required to make annual payments to the Taxing Jurisdiction for each
year during the term of this Agreement; and
WHEREAS, the Owner has submitted or will submit to the assessor of the (Village/Town/City) a RP-487 Application for Tax
Exemption of Solar or Wind Energy Systems or Farm Waste Energy Systems, demonstrating its eligibility for a real property tax
exemption pursuant to RPTL Section 487; and
WHEREAS, the Parties intend that, during the term of this Agreement, the Project will be placed on exempt portion of the
assessment roll and the Owner will not be assessed for any statutory real property taxes for which it might otherwise be subjected
under New York law with respect to the Project.
NOW THEREFORE, for and in consideration of the mutual covenants hereinafter contained, the receipt and sufciency of
which are hereby acknowledged, the Parties hereby agree as follows:
1. Representations of the Parties.
(a) The Owner hereby represents, warrants, and covenants that, as of the date of this Agreement:
1. The Owner is duly organized, and a validly existing (corporation, limited liability company, etc.) duly
authorized to do business in the State of New York, has requisite authority to conduct its business as presently conducted or proposed
to be conducted under this Agreement, and has full legal right, power, and authority to execute, deliver, and perform all applicable
terms and provisions of this Agreement.
2. All necessary action has been taken to authorize the Owner’s execution, delivery, and performance of this Agreement and this
Agreement constitutes the Owner’s legal, valid, and binding obligation enforceable against it in accordance with its terms.
3. None of the execution or delivery of this Agreement, the performance of the obligations in connection with the transactions
contemplated hereby, or the fulllment of the terms and conditions hereof will (i) conict with or violate any provision of the
Owner’s Certicate of Incorporation, Certicate of Formation, bylaws or other organizational documents or of any restriction or any
agreement or instrument to which the Owner is a party and by which it is bound; (ii) conict with, violate, or result in a breach of
any applicable law, rule, regulation, or order of any court or other taxing jurisdiction or authority of government or ordinance of the
State or any political subdivision thereof; or (iii) conict with, violate, or result in a breach of or constitute a default under or result
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in the imposition or creation of any mortgage, pledge, lien, security interest, or other encumbrance under this Agreement or under
any term or condition of any mortgage, indenture, or any other agreement or instrument to which it is a party or by which it or any of
the Owner’s properties or assets are bound. There is no action, suit, or proceeding, at law or in equity, or ofcial investigation before
or by any government authority pending or, to its knowledge, threatened against the Owner, wherein an anticipated decision, ruling,
or nding would result in a material adverse effect on the Owner’s ability to perform its obligations under this Agreement or on the
validity or enforceability of this Agreement.
(b) The Taxing Jurisdiction hereby represents, warrants, and covenants that, as of the date of this Agreement:
1. The Taxing Jurisdiction is duly organized, validly existing, and in good standing under the laws of the State of New York and
has full legal right, power, and authority to execute, deliver, and perform all applicable terms and provisions of this Agreement.
2. All necessary action has been taken to authorize the Taxing Jurisdiction’s execution, delivery, and performance of this
Agreement, and this Agreement constitutes the Taxing Jurisdiction’s legal, valid, and binding obligation enforceable against it in
accordance with its terms.
3. No governmental approval by or with any government authority is required for the valid execution, delivery, and performance
under this Agreement by the Taxing Jurisdiction except such as have been duly or will be obtained or made.
4. There is no action, suit, or proceeding, at law or in equity, or ofcial investigation before or by any government authority
pending or, to its knowledge, threatened against the Taxing Jurisdiction, wherein an anticipated decision, ruling, or nding would
result in a material adverse effect on the Taxing Jurisdiction’s ability to perform its obligations under this Agreement or on the validity
or enforceability of this Agreement.
2. Tax Exemption; Payment in Lieu of Real Property Taxes.
(a) Tax-Exempt Status of the Project Facility. Pursuant to RPTL 487 the Parties hereto agree that the Project shall be placed by the
Taxing Jurisdiction as exempt upon the assessment rolls of the Taxing Jurisdiction. A Real Property Tax Exemption Form (RP 487) has or
will be led with the Assessor responsible for the Taxing Jurisdiction and the Project is eligible for exemption pursuant to RPTL 487 (4).
(b) Owner agrees to make annual payments to the Taxing Jurisdiction in lieu of real property taxes for the Project for a period
of fteen (15) consecutive scal tax years; annual payments may not exceed the amounts that would otherwise be payable but for the
RPTL 487 exemption. Such 15-year term shall commence on the rst taxable status date selected by Owner following commencement
of the construction of the Project (the “Commencement Date”), and shall end the fteenth scal year following the Commercial
Operations Date. The rst annual payment shall be in the amount of $ per Megawatt AC of Capacity (the “Annual Payment”).
Thereafter Annual Payments will escalate by percent ( %) per year. Based on the Capacity of Megawatts AC, Annual
Payments to be made by Owner during the term of this Agreement shall be as listed in Exhibit B. Each Annual Payment will be paid
to the Taxing Jurisdiction in accordance with Section 5 of this Agreement; and the annual payment amount and payment date will be
noted on an annual bill issued by the Taxing Jurisdiction to the Owner, provided that any failure of the Taxing Jurisdiction to issue
such a bill shall not relieve Owner of its obligation to make timely payments under this section.
(c) Owner agrees that the payments in lieu of taxes under this Agreement will not be reduced on account of a depreciation
factor or reduction in the Taxing Jurisdiction tax rate, and the Taxing Jurisdiction agrees that the payments in lieu of taxes will not be
increased on account of an ination factor or increase in the Taxing Jurisdiction tax rate, all of which factors have been considered in
arriving at the payment amounts reected in this Agreement.
3. Change in Capacity at Mechanical Completion: Adjustments to Payments. To the extent that the Capacity of the Project is
more or less than the Megawatts AC on the date when the Project is mechanically complete, and Owner has commenced
production of electricity, the payments set forth in Exhibit B will be increased or decreased on a pro rata basis.
4. Change in Capacity After Mechanical Completion: Adjustments to Payments. If after the Completion Date the Capacity
is increased or decreased as a result of the replacement or upgrade or partial removal or retirement of existing Project equipment
or property or the addition of new Project equipment or property, the Annual Payments set forth in Exhibit B shall be increased or
decreased on a pro rata basis for the remaining years of the Agreement.
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5. Payment Collection. (depending on the type of jurisdiction – choose ONE)
Payments for the School District shall be made payable to the School District and mailed to the School District,
c/o the Superintendent’s Ofce, located at [ENTER SCHOOL DISTRICT ADDRESS] and are due no later than September 15th of
each year.
Payments for the Town shall be made payable to the Town of and mailed to the Town of , c/o the Town
of Supervisor’s Ofce, located at [ENTER TOWN ADDRESS] and are due no later than February 15th of each year.
Payments for the County shall be made payable to the County Treasurer and mailed to the County of , c/o [ENTER COUNTY
ADDRESS], and are due no later than February 15th of each year.
All late payments shall accrue interest at the statutory rate for late tax payments under New York Law. Owner shall pay the reasonable
attorney fees, court and other costs incurred by the Taxing Jurisdiction in the collection of the unpaid amounts. All payments by the
Owner hereunder shall be paid in lawful money of the United States of America.
6. Tax Status. Separate Tax Lot. The Taxing Jurisdiction agrees that during the term of this Agreement, the Taxing Jurisdiction
will not assess Owner for any real property taxes with respect to the Project to which Owner might otherwise be subject under New
York law, and the Taxing Jurisdiction agrees that this Agreement will exclusively govern the payments of all such taxes, provided,
however, that this Agreement is not intended to affect, and will not preclude the Taxing Jurisdiction from assessing, any other taxes,
fees, charges, rates or assessments which the Owner is obligated to pay, including, but not limited to, special assessments or special
district assessments, fees, or charges for services provided by the Taxing Jurisdiction to the Project. Nothing in this Agreement shall
limit the right of the Owner to challenge the assessment of the Project pursuant to the RPTL.
7. No Assignments Without Prior Notice; Binding Effect.
(a) This Agreement may not be assigned by Owner without the prior written consent of the Taxing Jurisdiction; such consent
may not be unreasonably withheld if the Assignee has agreed in writing to accept all obligations of the Owner. The restrictions on
assignment contained herein do not prohibit or otherwise limit changes in control of Owner. If Owner assigns this Agreement with
the advance written consent of the Taxing Jurisdiction, the Owner shall be released from all obligations under this Agreement upon
assumption hereof in writing by the assignee, provided that Owner shall, as a condition of such assignment and to the reasonable
satisfaction of the Taxing Jurisdiction, cure any defaults and satisfy all liabilities arising under this Agreement prior to the date
of such assignment. A Notice of this Agreement may be recorded by Owner and the Taxing Jurisdiction shall cooperate in the
execution of required Assignments with the Owner and its successors. Owner may, with advance written notice to the Taxing
Jurisdiction and without prior consent, assign this Agreement to an afliate of Owner or to any party who has provided or is
providing nancing to Owner for the construction, operation and/or maintenance of the Project.
(b) Binding Effect. This PILOT Agreement shall inure to the benet of, and shall be binding upon, the Taxing Jurisdiction, the
Owner and their respective successors and assigns.
8. Statement of Good Faith. The Parties agree that the payment obligations established by this Agreement have been negotiated
in good faith in recognition of and with due consideration of the full and fair taxable value of the Project.
9. Additional Documentation and Actions. Subject to applicable laws and regulations, each Party will, from time to time
hereafter, execute and deliver or cause to be executed and delivered, such reasonable additional instruments and documents as the
other Party reasonably requests for the purpose of implementing or effectuating the provisions of this Agreement. Owner shall pay
all reasonable attorneys’ and consulting fees incurred by the Taxing Jurisdiction to review and negotiate any such instruments or
documents.
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10. Notices. All notices, consents, requests, or other communications provided for or permitted to be given hereunder by a Party
must be in writing and will be deemed to have been properly given or served upon the personal delivery thereof, via courier delivery
service, by hand, or by certied mail, return receipt requested. Such notices shall be addressed or delivered to the Parties at their
respective addresses shown below.
If to Owner:
With a copy to:
If to the Taxing Jurisdiction: Attn: Superintendent
Mayor
Town Supervisor County
With a copy to:
Any such addresses for the giving of notices may be changed by either Party by giving written notice as provided above to the other
Party. Notice given by counsel to a Party shall be effective as notice from such Party.
11. Applicable Law. This Agreement will be made and interpreted in accordance with the laws of the State of New York. Owner
and the Taxing Jurisdiction each consent to the jurisdiction of the New York courts in and for the County in which the Project is
located regarding any and all matters, including interpretation or enforcement of this Agreement or any of its provisions. Accordingly,
any litigation arising hereunder shall be brought solely in such courts.
12. Termination Rights of the Owner. Owner may terminate this Agreement at any time by Notice to the Taxing Jurisdiction.
Upon receipt of the Notice of Termination, the Project shall be placed on the taxable portion of the tax roll effective on the next
taxable status date of the Taxing Jurisdiction. Owner shall be liable for all PILOT payments due in the year of termination, except that
if Owner is required to pay any part-year real property taxes, the PILOT payment for that year shall be reduced pro rata so that the
Owner is not required to pay both PILOT payments and real property taxes for any period of time.
13. Termination Rights of Taxing Jurisdiction. Notwithstanding anything to the contrary in this Agreement, the Taxing
Jurisdiction may terminate this Agreement on thirty (30) days written notice to Owner if:
a. Owner fails to make timely payments required under this Agreement, unless such payment is received by the Taxing
Jurisdiction within the 30-day notice period with interest as stated in this Agreement
b. Owner has led, or has had led against it, a petition in Bankruptcy, or is otherwise insolvent;
14. Remedies; Waiver and Notice.
(A) No Remedy Exclusive. No remedy herein conferred upon or reserved to Party is intended to be exclusive of any other
available remedy or remedies, but each and every such remedy shall be cumulative and shall be in addition to every other remedy
given under this Agreement or now or hereafter existing at law or in equity or by statute.
(B) Delay. No delay or omission in exercising any right or power accruing upon the occurrence of any breach of an obligation
hereunder shall impair any such right or power or shall be construed to be a waiver thereof, but any such right or power may be
exercised from time to time and as often as may be deemed expedient.
(C) No Waiver. In the event any provision contained in this Agreement should be breached by any party and thereafter duly
waived by the other party so empowered to act, such waiver shall be limited to the particular breach so waived and shall not be
deemed to be a waiver of any other breach hereunder. No waiver, amendment, release or modication of this Agreement shall be
established by conduct, custom or course of dealing.
15. Entire Agreement. The Parties agree that this is the entire, fully integrated Agreement between them with respect to payments
in lieu of taxes for the Project.
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16. Amendments. This Agreement may not be effectively amended, changed, modied, altered or terminated except by an
instrument in writing executed by the parties hereto.
17. No Third-Party Beneciaries. The Parties state that there are no third-party beneciaries to this Agreement.
18. Severability. If any article, section, subdivision, paragraph, sentence, clause, phrase, provision or portion of this Agreement
shall for any reason be held or adjudged to be invalid or illegal or unenforceable by any court of competent jurisdiction, such article,
section, subdivision, paragraph, sentence, clause, phrase, provision or portion so adjudged invalid, illegal or unenforceable shall be
deemed separate, distinct and independent and the remainder of this Agreement shall be and remain in full force and effect and shall
not be invalidated or rendered illegal or unenforceable or otherwise affected by such holding or adjudication.
19. Counterparts. This Agreement may be simultaneously executed in several counterparts, each of which shall be an original and
all of which shall constitute but one and the same instrument.
Executed by the undersigned as of the day and year rst written above, each of whom represents that it is fully and duly authorized to
act on behalf of and bind its principals.
By:
Name
Title
Date
Superintendent/Supervisor/County Ofcial
Date
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EXHIBIT A
Description of Land
EXHIBIT B
Year Payment Amount
Questions?
If you have any questions regarding solar PILOT agreements, please email questions to [email protected].gov or
request free technical assistance at nyserda.ny.gov/SolarGuidebook. The NYSERDA team looks forward to partnering with
communities across the state to help them meet their solar energy goals.
