New York Solar Incentives Overview
New York is one of the best states for solar, with a combination of federal, state, and local incentives that can reduce system costs by over 50%. High electricity rates (among the highest in the nation) mean significant long-term savings.
Current Incentive Summary
| Incentive | Value | Availability |
|---|---|---|
| Federal ITC (PPA/Lease only in 2026) | 30% via 48E (company claims it) | Through Dec 2027 (PPA/Lease only) |
| NY State Tax Credit | 25% up to $5,000 | All residents |
| NY-Sun Rebate | Varies by region | Limited funding |
| Property Tax Exemption | 100% exemption | All homeowners |
| Sales Tax Exemption | 100% exemption | All solar equipment |
Federal Tax Credit Update: What Changed in 2026
Important 2026 Update: The 30% residential ITC (25D) for homeowner-purchased solar systems (cash or loan) expired on December 31, 2025. There is no longer a federal tax credit for purchased systems.
- PPA/Lease: Solar company claims a 30% commercial credit (48E) through Dec 2027, typically passes savings to you as lower rates
- Purchased systems (cash/loan): No federal credit available in 2026
- Stackable: Combines with all NY incentives
- Requirements: System must be at your primary residence
Example savings (combined with NY credit):
- 8kW system at $24,000 = $7,200 federal + $5,000 state = $12,200 total
- 10kW system at $28,000 = $8,400 federal + $5,000 state = $13,400 total
- 15kW system at $38,000 = $11,400 federal + $5,000 state = $16,400 total
Every home is different. Chat with our AI to get numbers specific to your address, usage, and utility.
New York State Solar Tax Credit
New York offers one of the few remaining state solar tax credits in the country. This 25% credit on system costs can significantly reduce your upfront investment.
- Credit Amount: 25% of eligible system costs
- Maximum: $5,000 per taxpayer
- Requirements: Must have sufficient state tax liability
- Carryforward: Can carry forward unused credit
NY-Sun Megawatt Block Program
NY-Sun provides rebates through NYSERDA that vary by region and incentive block. Blocks have been closing as funding is exhausted, with rates declining over time.
- Current Rates: Vary by region and available blocks
- Upstate: Block closed December 2025
- Con Edison: Limited funding available
- Low-Income: Enhanced rates through Affordable Solar
Property Tax Exemption
New York provides a 100% property tax exemption for residential renewable energy systems. This means installing solar will NOT increase your property taxes.
- Exemption: 100% of added value
- Duration: 15 years (can be renewed)
- Application: Through local assessor
Sales Tax Exemption
New York waives state and local sales tax on solar energy systems. This can save 4-8% depending on your locality.
- Savings: 4-8% (state + local)
- Automatic: Applied by installer
- Covers: All solar equipment + installation
Net Metering & VDER
New York uses the VDER (Value of Distributed Energy Resources) value stack for compensating solar customers. This is more complex than traditional net metering but often provides better compensation.
VDER Value Stack Components
- Energy: Market-based rate for exported energy
- Capacity: Value of generation during peak demand
- Environmental: Avoided emissions value
- Demand Reduction: Value of reducing grid strain
- Location: Varies by utility territory
Community Solar
New York has one of the largest community solar markets in the country. This allows renters and those with unsuitable roofs to benefit from solar:
- How it works: Subscribe to local solar farm shares
- Savings: Typically 5-15% on electricity bills
- No roof needed: Perfect for renters
- Available statewide: Multiple providers
Utility Programs
Con Edison (NYC & Westchester)
- VDER compensation for solar exports
- Smart Energy rebates available
- Battery storage incentives
National Grid (Upstate NY)
- Net metering with VDER
- Energy efficiency programs
- Low-income solar programs
PSEG Long Island
- Net metering available
- Solar Rebate Program
- Energy efficiency incentives
Calculate Your Total Savings
Here's how to estimate your total incentives when going solar in New York:
Example: 10kW System ($28,000)
| System Cost | $28,000 |
| Federal ITC (PPA/Lease only in 2026) | -$8,400 |
| NY State Tax Credit (25%) | -$5,000 |
| Sales Tax Exemption (~7%) | -$1,960 |
| Net Cost After Incentives | $12,640 |
What's the best way to maximize New York solar savings?
Follow these steps:
- Apply for NY-Sun early in the year
- Stack federal + state tax credits
- Consider community solar if you rent
- Add battery for enhanced VDER compensation
- Check for low-income programs
- Work with NYSERDA-approved installer
How to Claim Your Incentives
- Federal ITC: Claim on IRS Form 5695
- NY State Tax Credit: Claim on NY IT-255 form
- NY-Sun: Your installer handles application
- Property Tax: Apply through local assessor
- Sales Tax: Automatic through installer
- Net Metering: Sign up through utility