Solar Incentives in New York (2026)
New York homeowners pay an average of $0.22/kWh for electricity. With the right incentives, solar can offset a significant portion of that cost. Below are the 5 active programs available in New Yorkas of February 2026.
Federal ITC Update: The federal residential solar tax credit (Section 25D) expired December 31, 2025 per the One Big Beautiful Bill Act (Public Law 119-21). The commercial ITC (Section 48E) remains active at 30% for systems under 1 MW through 2032. State and utility programs listed below remain in effect.
Active Incentive Programs
| Program | Type | Authority | Amount | Description |
|---|---|---|---|---|
| Tax Credit | New York State Department of Taxation and Finance State | 25% of system cost, capped at $5,000 | New York offers one of the most generous state solar tax credits in the country. 25% of qualified expenditures up to $5,000. New York State resident taxpayers who purchase and install a solar energy system. | |
| Rebate | NYSERDA State | Up to $0.20/W. Varies by utility territory and current block. Declining block structure -- incentive decreases as capacity fills. | Upfront incentive paid to the installer and passed to the customer as a system cost reduction. Part of NY's goal to reach 10 GW distributed solar by 2030. Residential customers in New York State. Must use NYSERDA-approved installer. | |
| Net Metering | New York Public Service Commission State | Credits based on value stack: energy value + capacity value + environmental value + demand reduction value. Typically near or above retail rate. | New York's successor to traditional net metering. The Value Stack compensates solar based on the actual value the energy provides to the grid. Small residential systems may still qualify for traditional net metering (NEM). New solar installations in New York. Systems over 750 kW use Value Stack; smaller systems may choose NEM or Value Stack. | |
| Property Tax Exemption | New York State (local jurisdictions may opt out) State | 15-year exemption. 100% of added value from solar excluded from property tax. | Solar energy systems are exempt from property tax increases for 15 years. Applies by default unless a municipality has specifically opted out via local law. All solar installations in New York State, in municipalities that have not opted out. | |
| Sales Tax Exemption | New York State Department of Taxation and Finance State | Exempt from state (4%) and most local (4%) sales tax on solar equipment | Solar energy system equipment is exempt from New York State and most local sales taxes. All solar energy equipment purchases in New York State. |
Data sourced from DSIRE, EnergySage, and state energy offices. Last verified February 2026. Verify all programs directly with the administering authority.
Get a ZIP-Specific Incentive Report
Programs vary by utility and municipality within New York. Enter your ZIP code to see exactly which incentives apply to your address.
Look Up Incentives by ZIPCalculate Your Solar ROI
See exactly how much a solar system saves at New York's current utility rate of $0.22/kWh. Generate a branded proposal in under 60 seconds.
Open ROI CalculatorFrequently Asked Questions
Does New York have a solar tax credit in 2026?
Yes. New York offers a state solar tax credit in 2026. See the incentives table above for current amounts and eligibility. Note: the federal residential ITC (Section 25D) expired December 31, 2025.
What is the average electricity rate in New York?
The average residential electricity rate in New York is approximately $0.22/kWh as of 2026. Higher utility rates generally improve solar ROI.
Does New York have net metering?
Yes. New York has a net metering or net billing policy that credits solar owners for excess electricity exported to the grid. See the incentives table above for current rates and program details.
Is solar equipment exempt from sales tax in New York?
Yes. New York exempts solar energy equipment from state sales tax, reducing upfront system costs.
Does going solar increase property taxes in New York?
No. New York offers a property tax exemption for solar energy systems, meaning the added home value from solar is not included in your property tax assessment.
Did the federal solar tax credit expire?
Yes. The federal residential solar tax credit (Section 25D) expired December 31, 2025 per the One Big Beautiful Bill Act (Public Law 119-21). The commercial ITC (Section 48E) remains active at 30% for systems under 1 MW through 2032.