New York solar incentives in 2026, in one line: no federal credit for a system you buy, but the 25% state tax credit (up to $5,000), sales and property tax exemptions and net metering still make New York one of the strongest solar states. Last updated: 16 October 2026.
New York Solar Incentives 2026 at a Glance
| Incentive | Status in 2026 | What it is worth |
|---|---|---|
| Federal residential credit (Section 25D) | Ended 31 Dec 2025 | $0 on a 2026 cash or loan purchase |
| Federal Section 48E (lease / PPA) | Claimed by the system owner, not you | Indirect – may show up as a lower lease or PPA rate; tightens after 2027 |
| New York State solar tax credit | Active | 25% of system cost, up to $5,000; unused credit carries forward up to 5 years |
| NY-Sun incentive (NYSERDA) | Mostly limited to income-qualified homes | Per-watt rebate if you qualify; most standard residential blocks are closed – check NYSERDA |
| Sales tax exemption | Active | The 4% state sales tax is waived; many counties also waive local tax |
| Property tax exemption (RPTL 487) | Active unless your locality opted out | Added home value exempt for 15 years |
| NYC solar property tax abatement | Active in New York City | Reduces NYC property tax over several years |
| Net metering | Active for home systems | Exports credited against your bill; newer customers pay a small monthly Customer Benefit Contribution charge |
New York is one of the best states for solar incentives in 2026. The 30% federal credit expired at the end of 2025, but between a generous state tax credit, tax exemptions, and net metering, New York homeowners still cover a large share of their system cost with incentives. Here is the full stack.
Want the full price picture? See our breakdown of solar panel cost in New York, with 2026 prices per watt, savings at New York electricity rates and payback with and without the NYC abatement.
New York Solar Incentives in 2026
- No federal tax credit on a 2026 cash or loan purchase - Section 25D expired 31 December 2025. See solar tax credit 2026.
- New York State solar tax credit - 25% of the cost, up to $5,000, with a 5-year carryforward.
- NY-Sun - per-watt incentives, now mostly for income-qualified households.
- Sales and property tax exemptions (15-year property exemption unless your locality opted out).
- Net metering for excess electricity.
What Solar Costs in New York
A typical 7 kW system is around $21,000 before incentives. The state credit (up to $5,000) and the sales tax exemption bring the net cost down; NY-Sun rebates now mostly go to income-qualified homes.
Is Solar Worth It in New York?
Yes for most homeowners. High electricity rates plus one of the most generous incentive stacks in the country make New York a strong solar state.
Get my 3 free New York solar quotes →
New York Solar Incentives FAQ
What solar incentives does New York offer in 2026?
The state solar tax credit (25% up to $5,000), the sales tax exemption, the 15-year property tax exemption, net metering and, for income-qualified homes, NY-Sun incentives. New York City adds a property tax abatement. There is no federal credit for a system you buy.
How much is the New York solar tax credit?
25% of qualified system costs, capped at $5,000. If your state tax bill is smaller than the credit, the rest carries forward for up to 5 years.
Is NY-Sun still available in 2026?
For most households the standard NY-Sun residential rebate blocks are closed. Income-qualified homes can still get NY-Sun support. Check current availability with NYSERDA or a participating installer.
Does New York still have net metering?
Yes for home systems. Exported power is credited against your bill. Systems connected since 2022 pay a small monthly Customer Benefit Contribution charge based on system size.
Can I claim both the federal and New York state credits?
No federal credit is left to claim on a 2026 purchase - Section 25D ended 31 December 2025. The New York credit still applies. More: solar tax credit 2026.
Do I pay property tax on solar in New York?
Usually not on the added value: RPTL Section 487 exempts it for 15 years, unless your town, county or school district opted out. Ask your assessor.
Related
- Solar incentives by state
- Solar tax credit 2026: what changed
- Solar panel cost in New York
- New Jersey solar incentives
- Massachusetts solar incentives
- Net metering explained
- Solar panel cost
- Is solar worth it?
General 2026 guidance, not tax advice. Verify current NY program rules before purchasing.