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New York · Updated August 2026
New York solar incentives in 2026
Every solar incentive a New York homeowner can actually use in 2026, what each one is worth, and the one that still works even if you never own the panels.
25%State tax credit, capped at $5,000 — and it applies to PPAsRanked #1 by Solar Power World · Inc. 5000 · 20,000+ installations
The numbers
What New York actually offers in 2026
| Measure | Current | Detail |
|---|---|---|
| NY State Solar Energy System Equipment Credit | 25% | Capped at $5,000. Form IT-255 |
| Applies to leases and PPAs | Yes | Unlike the former federal credit |
| Carry-forward period | 5 years | If your tax liability is lower than the credit |
| NY-Sun Megawatt Block | $0.20–$0.40/W | Varies by region and block. Paid to the installer |
| Low-to-moderate income adder | $0.40–$0.80/W | For qualifying households |
| State sales tax exemption | Full | On residential solar equipment |
| Property tax exemption | 15 years | Statewide |
| Federal residential credit (25D) | Ended | For property placed in service after Dec 31, 2025 |
Figures as published August 2026. Utility rates change on published schedules — check your own bill for the rate that applies to your account.
Why the number is what it is
The 25% state credit works even under a PPA
New York’s Solar Energy System Equipment Credit is 25% of your net system cost after the NYSERDA rebate, capped at $5,000, claimed on Form IT-255. Unused credit carries forward up to five years.
What makes it unusual is that it applies to leased and third-party-owned systems, not only purchases. The federal residential credit never worked that way, and most state credits do not either. In New York, a homeowner on a qualifying PPA of ten years or more can claim it personally.
That is the single most valuable thing on this page for anyone considering $0-down, and it is routinely left out of solar quotes.
Source: New York State Department of Taxation and Finance, Form IT-255, Solar Energy System Equipment Credit. Qualifying power purchase agreements and leases of ten years or more are eligible. This is not tax advice — confirm your situation with a tax professional.
NY-Sun is a rebate to the installer, not a check to you
NYSERDA’s NY-Sun Megawatt Block pays a per-watt rebate directly to your installer, who is required by law to pass it through as a reduction in your contract price. You never file anything.
Current rates run roughly $0.20 to $0.40 per watt depending on your utility territory and which funding block is open, with adders of $0.40 to $0.80 per watt for income-qualifying households.
Net metering or VDER, and it depends on your utility
New York has been moving from traditional 1:1 net metering to the Value Stack, also called VDER, which values exported power by when and where it is produced rather than at a flat retail rate.
Most residential customers still have access to traditional net metering as of 2026, but some utilities are moving faster than others. Under VDER, exported credits typically cover 60 to 90 percent of the retail rate, with summer afternoons worth the most.
Ask your installer which applies to your address, and ask to see the math both ways. The difference over 20 years is not small.
The federal residential credit ended. Here is what that actually means.
The 30% federal Residential Clean Energy Credit under Section 25D ended for systems purchased after December 31, 2025. If you buy a system with cash or a loan in 2026, you cannot claim it. Any site still advertising "30% federal tax credit" for a homeowner purchase is running outdated information.
What remains is Section 48E, the commercial investment credit. It applies to third-party-owned systems — leases and power purchase agreements — where the system owner claims it rather than the homeowner. That is precisely what makes $0-down possible: the credit stays with whoever owns the equipment, and under a PPA that is not you.
We would rather tell you that plainly than let you find out at tax time.
Two ways to pay for solar, and they are very different
If you buy the system
You own the equipment, you keep any renewable energy credits, and you carry the maintenance responsibility. Installed pricing varies by roof, shading and system size.
If you use a PPA
$0 upfront. We install and own the system; you buy the power it produces at a rate set in your agreement, and you only pay for what it actually generates. The system owner carries maintenance for the life of the agreement.
The residential federal tax credit (25D) ended for systems purchased after December 31, 2025.
You will still see ads promising a 30% credit that “ends December 31.” Read the date on them. If you buy a system today as a homeowner, you cannot claim that credit. What remains applies to the owner of the system — which, under a PPA, is us. SolarAmerica does not provide tax advice; talk to your tax professional about your situation.
Who you would be working with
SolarAmerica
We design your system and manage the project; installation is performed by vetted licensed partners in your area.
New York questions
The things people actually ask
Why is New York's Price to Compare lower than PPL's but the all-in rate higher?
Because the two numbers measure different things. New York's supply charge is lower; its distribution charges and riders are higher. What matters to your budget is the all-in figure — your bill divided by your kilowatt-hours.
How often does this change?
Four times a year: March, June, September and December.
Can I shop for supply?
Yes. New York is deregulated, and switching suppliers changes only the supply portion of your bill.
See what your roof and New York actually add up to
About 60 seconds. No cost, no obligation, and we will tell you if solar does not make sense for your home.
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