New York Solar Incentives in 2026
New York's own incentives came through 2025 untouched, which now matters more than it used to. Here is what actually applies, what it is worth, and what you have to do to qualify.
New York offers four solar incentives in 2026: a state tax credit worth 25% of system cost capped at $5,000, NY-Sun per-watt rebates paid directly to your installer, a state sales tax exemption, and a 15 year property tax exemption on the added home value. The federal residential credit ended for systems installed after 31 December 2025.
The four that matter
New York is unusual in stacking a state tax credit on top of an up-front rebate, and then exempting the purchase from sales tax and the added home value from property tax. Each works differently and arrives at a different time, which is the part that confuses people reading a quote.
| Incentive | What it is worth | When you see it |
|---|---|---|
| NYS Solar Energy System Equipment Credit | 25% of cost after the NYSERDA incentive, capped at $5,000 | When you file your state taxes |
| NY-Sun (NYSERDA) | A per-watt rebate, roughly $0.20 to $0.40/W depending on region and block when we checked in September 2026. Blocks close and rates step down, so confirm the current NYSERDA dashboard | Off the price, before you pay |
| Sales tax exemption | Removes state sales tax on the system. Local sales tax treatment varies by jurisdiction | At purchase |
| Property tax exemption | 15 years on the added assessed value, unless your municipality has opted out | On your property tax bill |
The state tax credit, and the detail people miss
The New York State Solar Energy System Equipment Credit is worth 25% of the installed cost, capped at $5,000. It applies to systems up to 25 kW on net metered residential properties.
The detail that catches people out is the order of operations. The 25% is calculated on the cost after the NYSERDA incentive has been deducted, not on the sticker price. A quote that computes it the other way overstates your benefit.
It is non-refundable, meaning it offsets tax you owe rather than generating a refund on its own, but unused credit carries forward for up to five years. For most households with New York State tax liability that means it gets used, just not necessarily all in year one.
NY-Sun, and why it does not arrive as a cheque
NY-Sun is NYSERDA's per-watt incentive and it behaves differently from the tax credit. It is paid directly to your installer, who deducts it from what you pay. You never handle the money, and you do not wait until tax season to feel it.
The amount is roughly $0.20 to $0.40 per watt in 2026 depending on your region and the current incentive block. NY-Sun operates on a declining block structure, meaning the rate steps down as capacity fills in each region, so the figure quoted today is not guaranteed indefinitely.
There is a hard eligibility condition here that is worth understanding. NY-Sun is only available through a NYSERDA participating contractor. Hire outside that list and you forfeit the rebate, and because the state credit is calculated after the rebate, the knock-on effect is larger than it first looks.
The two exemptions nobody mentions
Residential solar systems are exempt from New York State sales tax. That is straightforward and it happens at purchase without you doing anything.
The property tax exemption is the more interesting one. Solar typically raises a home's assessed value, which would normally raise your property tax bill. New York exempts that added value for 15 years. You get the resale benefit without the annual tax consequence.
Some municipalities have opted out of the property tax exemption, so it is worth confirming for your specific town rather than assuming.
Who qualifies
- The property is in New York State
- You are served by a participating utility: Con Edison, National Grid, NYSEG, Central Hudson, Orange & Rockland, or Rochester Gas & Electric
- The installation is carried out by a NYSERDA approved contractor
- For the state credit, the system is up to 25 kW and net metered
- You have New York State tax liability to offset, or expect to within five years
Low and moderate income households may qualify for additional NY-Sun adders on top of the standard incentive. Ask an installer to check your eligibility rather than assuming you do not qualify.
What changed, and what did not
The federal residential tax credit ended for systems installed after 31 December 2025. That is a genuine change and it makes the New York incentives proportionally more important than they were.
None of the state programmes above were affected. The state credit, NY-Sun and both exemptions are intact. If you have read that solar incentives disappeared, that is about the federal picture, not the New York one.
Questions people ask about this
Not for a new installation. Section 25D, the federal residential clean energy credit, was terminated for expenditures made after 31 December 2025. The IRS treats an expenditure as made when installation is completed, so paying a deposit in 2025 and commissioning in 2026 does not qualify. If you completed an installation on or before 31 December 2025 and could not use the full credit, unused amounts can still be carried forward. Confirm your position with a tax adviser.
25% of the installed cost, capped at $5,000. It is calculated after the NYSERDA incentive has been deducted, not on the full price. It is non-refundable but carries forward for up to five years.
For NY-Sun, yes. The rebate is only available through a participating contractor, and since the state tax credit is calculated on the post-rebate cost, using a non-participating installer costs you twice over.
New York exempts the added assessed value from property tax for 15 years, so normally no. Some municipalities have opted out of the exemption, so confirm for your town.
Yes. They are designed to stack. NY-Sun comes off the price, the state credit applies to what remains, and the two exemptions apply independently.
Businesses can still access the federal investment credit under Section 48E, which was not repealed, alongside NY-Sun commercial incentives and accelerated depreciation. Tax exempt organisations generally reach the benefit through a third party ownership arrangement instead. Both are worth discussing with your accountant.
How to check any solar contractor
This is a new site with no customer reviews, so we are not going to show you any. What we can do is tell you exactly what to verify about whoever contacts you, and where to look it up. That applies to the installer we refer you to and to every other quote you get.
NABCEP certification
The North American Board of Certified Energy Practitioners is the industry standard credential for solar installers. It certifies the individual professional who holds it, not the company, so a firm advertising it may have one certified person and twenty who are not.
How to check. Ask which named individual holds it, then search that name in the directory.
Search the NABCEP directoryNYSERDA participation
Registration in the state's NY-Sun programme. This one is not a nice to have: the New York State incentive is only available through an approved contractor, so using an unregistered installer forfeits it. Some also hold the Quality Solar Installer designation, which requires at least 12 NY-Sun projects in the past year and an average of 4 out of 5 on NYSERDA's own field inspections.
How to check. Search the company name in NYSERDA's list before you sign anything.
Check NYSERDA's contractor listLicensing and insurance
Appropriate electrical licensing for the work, plus general liability and workers compensation cover. A contractor without workers compensation can leave you personally exposed if someone is injured on your roof.
How to check. Ask for certificates of insurance naming you, and check the licence with your town or county before work starts. Do not accept a policy number alone.
Local experience
Interconnection is where most New York solar timelines slip, and it is handled very differently by Con Edison, National Grid, NYSEG, RG&E and PSEG Long Island. Permitting varies again by town.
How to check. Ask how many systems they have energised on your specific utility in the past year, and for two addresses in your county you can drive past.
NY Solar Finder is operated by RBR Growth Consulting. We are not a solar installer, we hold no industry certification, and we do not guarantee the credentials of the company that contacts you. We name these standards, and link to the bodies that issue them, so that you can check that company yourself before you sign anything.
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