NY incentive guide
New York solar incentives in 2026
Last updated · every NY program below is verifiable against the sources at the foot of this page.
The most valuable solar incentive in New York right now is 25% state tax credit plus NY-Sun rebates. Overall, the state's incentive stack rates as strong compared with the rest of the country.
The federal credit is gone — start here
The 30% federal residential clean energy credit (Section 25D) ended for systems installed after December 31, 2025. If you are buying a system in New York this year, there is no federal credit. That is a roughly $8,520 swing on an $28,400 system compared with 2025 pricing, and it is why state programs matter more now than they did a year ago.
What New York offers at a glance
| Incentive | Available? | Details |
|---|---|---|
| State income tax credit | Yes | 25% of system cost, capped at $5,000 |
| Rebate or performance payment | Yes | NY-Sun upfront rebates; block funding varies by region |
| SREC market | No | — |
| Sales tax exemption | Yes | Qualifying solar equipment is exempt from state sales tax. |
| Property tax exemption | Yes | The value solar adds to the home is excluded from property tax assessment. |
| Federal tax credit | No | Section 25D ended for systems installed after December 31, 2025. |
Reviewed September 2026. Incentive programs change frequently and several are funding-capped — verify current status with the administering agency or DSIRE before relying on any figure.
New York solar tax credit
New York offers a residential solar income tax credit: 25% of system cost, capped at $5,000. On a typical 8 kW install at about $25,200, that is worth roughly $5,000. A credit only helps to the extent you owe NY income tax, so check your liability and any carry-forward rules before treating it as a discount.
New York solar rebates and grants
NY-Sun upfront rebates; block funding varies by region. Rebate and grant programs are funding-limited and have opened and closed mid-year before, so confirm the current round is open before counting on it.
New York offers a 25% state income tax credit up to $5,000, NY-Sun upfront rebates (block funding varies by region), plus sales tax exemption — among the best state incentive stacks.
Net metering and export rates in New York
New York offers residential net metering with a modest monthly Customer Benefit Contribution charge, under the VDER framework. Exports are effectively near retail value for typical homes.
Compare this with net metering in every other state.
Export rules deserve to be read as an incentive. In a retail net metering state, every exported kilowatt-hour is worth the full retail rate; under net billing or avoided-cost compensation, the same kilowatt-hour can be worth a third of that. For a New York home at an assumed $0.25/kWh, that difference compounds across a 25-year system life.
What this means for your numbers
A typical 8 kW system in New York costs roughly $22,000–$28,400 installed before incentives, producing about 9,440 kWh a year and saving around $1,945 in year one — a simple payback near 11–15 years with no incentives applied. Anything in the table above shortens that.
Frequently asked questions
What are New York solar tax credits worth in 2026?
New York's solar income tax credit is 25% of system cost, capped at $5,000. On a typical 8 kW system costing about $25,200, that works out to roughly $5,000 — the cap is what binds, not the headline percentage. It is a credit against NY income tax, so you need enough state tax liability to use it.
Does New York have solar rebates?
Yes. NY-Sun upfront rebates; block funding varies by region. Rebate programs in NY are funding-limited and have historically opened and closed mid-year, so confirm the current round is still accepting applications before you count the money.
Is there a New York solar property tax exemption?
Yes. New York excludes the value solar adds to a home from property tax assessment, so a system that raises your home's value does not raise your annual tax bill. New York also exempts qualifying solar equipment from state sales tax, which comes straight off the installed price.
What solar incentives are available in New York in 2026?
New York offers a 25% state income tax credit up to $5,000, NY-Sun upfront rebates (block funding varies by region), plus sales tax exemption — among the best state incentive stacks. Because the federal Section 25D credit ended for systems installed after December 31, 2025, these state, local and utility programs are now the entire incentive picture for a purchased system.
Is there still a 30% federal solar tax credit in New York?
No. The 30% federal residential clean energy credit (Section 25D) ended for systems installed after December 31, 2025 under the One Big Beautiful Bill Act. Any quote or website still applying 30% to a 2026 purchased installation is out of date. Leased and PPA systems can still benefit indirectly, because the third party that owns the system may claim the commercial 48E credit through 2027 and pass some of the value through in pricing.
Does New York have net metering?
New York offers residential net metering with a modest monthly Customer Benefit Contribution charge, under the VDER framework. Exports are effectively near retail value for typical homes. Export rules are effectively an incentive — often the largest one — because they set what every kilowatt-hour you do not use on site is worth.
How much do incentives change the cost of solar in New York?
Before incentives, a typical 8 kW system in New York runs roughly $22,000–$28,400. A state credit of 25% of system cost, capped at $5,000 comes off that, subject to the cap and your tax liability. See our full New York cost breakdown for payback math.
Verify before you rely on any of this
Incentive programs open, close, deplete their funding and change their caps — often mid-year. This page is a starting point reviewed September 2026, not tax advice. Confirm with: