New York Solar Incentives, Tax Credits & Rebates 2026
State-program snapshot: 2026-01 · Federal status reviewed: 2026-08-06Cost Context
An illustrative 48.0 kW system using the historical observed average cost in New York is $214,560. New federal residential credit for a 2026 installation: $0. Modeled annual savings before financing: $13,251.
Federal Residential Credit Status
Residential Clean Energy Credit
Ended for new 2026 systems0% for property placed in service in 2026
IRS guidance states that the 30% credit applied to qualified residential clean-energy property installed from 2022 through December 31, 2025. It is not available for property placed in service after that date.
Eligibility
No new residential credit for a system first placed in service in 2026. A previously earned unused credit may be eligible for carryforward under IRS rules.
Primary source
IRS Residential Clean Energy Credit guidance ↗New York State Program Snapshot
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).
State and utility programs can change between reviews. Confirm eligibility, funding and deadlines with the administering agency or utility before relying on this snapshot.
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
State-program sources: DSIRE, state energy offices and utilities; snapshot dated 2026-01. Programs, funding and eligibility can change without notice. Federal residential status reviewed against IRS guidance on August 6, 2026.