New York Solar Incentives, Tax Credits & Rebates 2024
Last updated: 2026-01Incentive Score
Total Savings Estimate
A typical 8kW system in New York costs $214,560. After the 30% federal tax credit: $150,192. Estimated annual savings: $1,500.
Federal Investment Tax Credit (ITC)
Federal Solar Investment Tax Credit (ITC)
Tax Credit30% of total system cost
The federal ITC allows you to deduct 30% of the cost of installing a solar energy system from your federal taxes. This applies to both residential and commercial systems with no cap on value.
Eligibility
Available to homeowners who own their solar system (purchased, not leased). Must have sufficient tax liability.
Expiration / Phase-Down
30% through 2032, steps down to 26% in 2033 and 22% in 2034
New York State Incentives
NY-Sun Incentive (NYSERDA)
Rebate$0.20-$0.40/W depending on region and utility
NYSERDA's NY-Sun program provides megawatt block incentives that reduce the upfront cost of solar installations.
New York State Solar Tax Credit
Tax Credit25% of system cost up to $5,000
State income tax credit equal to 25% of your solar system cost, capped at $5,000 or your tax liability.
Net Metering / VDER
Net MeteringFull retail rate for residential under 25 kW
Residential systems under 25 kW receive full retail net metering. Larger systems transition to Value of Distributed Energy Resources (VDER).
Tax Exemptions
property tax Exemption
15-year real property tax exemption for solar installations. Municipalities must opt in, and most have.
sales tax Exemption
Solar equipment is exempt from the 4% New York state sales tax. Most counties also exempt from local sales tax.
Utility Programs
Con Edison
- Net metering
- Smart Home Rate
- Demand response programs
PSEG Long Island
- Net metering
- Solar rebates
- Community solar
National Grid
- Net metering
- Upstate solar incentives
Highlights & Drawbacks
Highlights
- ✓Generous $5,000 state tax credit
- ✓NYSERDA rebates reduce upfront cost
- ✓Full retail net metering for residential
- ✓Both property and sales tax exemptions
Drawbacks
- !Lower sun hours than national average
- !Higher-than-average installation costs
- !VDER transition for larger systems
Source: DSIRE (Database of State Incentives for Renewables & Efficiency), U.S. Department of Energy, state energy offices. Data reflects programs available as of 2026-01.