New York solar incentives 2026: every program explained

New York State offers a comprehensive solar incentive package that in 2026, with the federal credit expired, remains one of the strongest state-level programs in the country. The stack includes a 25% income tax credit, NYSERDA's NY-Sun program rebates, full retail-rate net metering, sales and property tax exemptions, and for New York City homeowners, an additional property tax abatement. Here is every incentive explained, what each is worth, and how to stack them correctly.

New York 25% state solar income tax credit

New York State offers a 25% income tax credit on the cost of a qualifying residential solar installation, capped at $5,000 per system. This is a credit against your New York State income tax — not a deduction, but a dollar-for-dollar reduction in your NY tax bill. On a $26,000 system, the maximum $5,000 credit applies (25% would be $6,500, but the cap is $5,000). The credit is claimed on your NY state income tax return. If your credit exceeds your tax liability in the year of installation, unused credit can be carried forward to subsequent tax years.

Critically: you must own the solar system to claim this credit. Homeowners who lease solar panels or sign a PPA (power purchase agreement) do not own the system — the solar company does — and therefore cannot claim the state tax credit. If claiming the NY 25% credit is important to you (it should be), choose cash purchase or a solar loan over a lease or PPA.

NY-Sun: NYSERDA's solar incentive program

NY-Sun (New York's Affordable Solar program), administered by the New York State Energy Research and Development Authority (NYSERDA), provides upfront incentives per watt installed for residential solar. These incentives vary by utility territory and by program tranche — the more solar that gets installed in a territory, the lower the per-watt incentive for subsequent installers, encouraging early adoption. The program has been running since 2014 and has stepped down significantly in some territories as adoption has grown.

Current NY-Sun residential incentive rates in 2026 vary by territory: Con Edison territory (NYC/Westchester), National Grid territory (upstate), and PSEG Long Island territory each have separate incentive levels. Check NYSERDA's website or ask your installer for current rates in your territory, as they update regularly. NY-Sun incentives are paid directly to the installer as an upfront payment, which should reduce your quoted system price. If an installer does not mention NY-Sun when quoting your system, ask specifically whether they are enrolled in the program.

NYC Property Tax Abatement (RPTAP)

New York City offers an additional solar incentive not available in the rest of the state: the Residential Clean Energy Property Tax Abatement (RPTAP), which provides a 30% abatement on the cost of a qualifying solar system, applied as a credit against your NYC property taxes over four years. For a $26,000 system, that is $7,800 in property tax abatement spread over four years ($1,950/year). This stacks on top of the state 25% tax credit, making NYC one of the strongest solar incentive markets in the country. The RPTAP is administered by NYC's Department of Finance; your solar installer typically helps with the application. Confirm current program eligibility at the time of installation, as RPTAP terms have been updated periodically.

Net metering in New York

New York's net metering law requires investor-owned utilities — Con Edison, National Grid, Central Hudson, New York State Electric & Gas (NYSEG), Rochester Gas and Electric (RG&E), and Orange & Rockland — to credit residential solar at the full retail rate. PSEG Long Island operates under a different structure called the Value of Distributed Energy Resources (VDER) tariff, which calculates credits differently from simple retail-rate net metering. New York homeowners offset excess generation against future utility bills; unused annual credits may roll forward or be paid out at avoided-cost rates depending on your utility's tariff. Full New York net metering guide.

Sales tax exemption on solar equipment

New York exempts solar energy equipment from state sales tax (8.875% or higher in NYC). On a $26,000 system, that saves approximately $2,300 in New York City (where the combined rate is 8.875%) or $2,000–$2,500 depending on local rates elsewhere in the state. The exemption applies at point of purchase; your installer handles it. This is a separate, stackable benefit from the income tax credit and RPTAP.

Property tax exemption on solar-added home value

New York real property tax law exempts the added value of a solar energy system from property tax assessment for 15 years. Your home is worth more because of solar; your property tax bill does not increase because of it. This applies statewide.

The federal credit: expired

The 30% federal residential solar tax credit expired at the end of 2025. It does not apply to New York solar installations in 2026. Any quote showing a 30% federal credit on a 2026 NY installation is using outdated numbers.