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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 incentive (standard) | Upstate | Open in NYSEG, RG&E and National Grid territory. Paid to the installer |
| Affordable Solar (income-eligible) | $0.80/W | Con Edison and upstate; $0.40/W on Long Island |
| NYSERDA battery incentive | Per kWh | Batteries up to 25 kWh, paid through the installer |
| 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.
Where it stands in 2026: the standard NY-Sun incentive for homes is open in NYSEG, RG&E and National Grid territory, and Central Hudson and Orange & Rockland are on their final residential block. Across the state, income-eligible households qualify for Affordable Solar: $0.80 per watt in Con Edison and upstate territory, and $0.40 per watt on Long Island.
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 property placed in service 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.
How $0-down solar works in New York → · What solar costs in New York →
The residential federal tax credit (25D) ended for property placed in service 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.
NY-Sun for income-eligible homes
Affordable Solar: $0.80 per watt off the system
NYSERDA’s Affordable Solar incentive is the NY-Sun incentive for income-eligible households. It pays $0.80 per watt in Con Edison and upstate territory and $0.40 per watt on Long Island, through your installer, as a reduction in your price. On a 7 kW system at $0.80 per watt, that is $5,600.
Qualify by income
Household income below 80% of the area median or 80% of the state median income, whichever is higher.
Or by program
An award letter from EmPower+, HEAP, SNAP, TANF or SSI dated within the last 12 months.
Sized to your home
The system is sized to your household’s usage, and the installer handles the paperwork.
Source: NYSERDA NY-Sun incentive dashboards and Program Manual (April 2026), checked October 2026.
New York battery incentives
New York pays toward the battery, then pays you to use it
Up front: NYSERDA’s residential storage incentive
NYSERDA’s residential energy storage incentive is open to homeowners for batteries up to 25 kWh, with or without solar, installed by a NYSERDA participating contractor. It is paid per kilowatt-hour of storage through your installer and taken off your price. It launched at $250 per kWh in Con Edison territory and $200 per kWh in the rest of the state, and NYSERDA’s Inclusive Storage Incentive adds a higher rate, $450 per kWh at launch, for income-eligible homes and disadvantaged communities. Rates step down as funding blocks fill, so your installer confirms the open block for your address.
Every summer: your utility pays your battery to help at peak times
| Utility | Program | Payment |
|---|---|---|
| National Grid | ConnectedSolutions: summer peak events, May–September | $50 per kW |
| NYSEG and RG&E | Energy Storage Solutions: up to 20 summer events, May–September | $50 per kW |
| Orange & Rockland | Smart Savers Battery Program: summer events, May–September | $50 per kW |
| Con Edison | Bring Your Own Battery: summer performance, May–September | $100 per kW |
Sources: NYSERDA Energy Storage Program and its April 2026 program manual; National Grid; NYSEG / RG&E; Orange & Rockland; Con Edison. Checked October 2026.
Built into New York law and NY-Sun
Your protections as a New York solar customer
Three business days to cancel
You can cancel a home solar agreement within three business days of receiving it, without charge or penalty.
A standard disclosure, before you sign
Solar companies must give you the state’s Standard Customer Disclosure Statement summarizing the key terms of your agreement.
Warranty on purchased systems
NY-Sun projects you buy carry at least a five-year transferable warranty covering parts and labor, including output that drops more than 10%.
Production guarantee on leases and PPAs
NY-Sun leases and PPAs guarantee production for the full term, at no repair cost to you, and the guarantee transfers with the home.
Fast warranty service
NY-Sun contractors must respond to a warranty request within 72 hours and complete repairs within 30 days.
Someone to call
NYSERDA: 866-NYSERDA (866-697-3732). NY Department of Public Service helpline: 800-342-3377.
Sources: NY Public Service Commission Uniform Business Practices for Distributed Energy Resource Suppliers (Case 15-M-0180); NY General Business Law §771; NYSERDA NY-Sun Program Manual, sections 3.13–3.14 (April 2026); NY DPS complaints.
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
What solar incentives does New York offer in 2026?
A state tax credit of 25% of system cost up to $5,000, which also applies to leases and PPAs of 10 years or more; NY-Sun incentives paid through your installer; a state sales tax exemption and a 15-year property tax exemption; and net metering or the Value Stack for the power you send back.
Is NYSERDA the same as my utility?
No. NYSERDA runs the NY-Sun incentive program, which is paid through your installer as a reduction in your price. Your utility connects your system and credits the power you send back. SolarAmerica handles the paperwork for both.
Do New York solar incentives apply with $0 down?
Yes. The 25% state tax credit also applies to leases and PPAs of 10 years or more, so a $0-down agreement can still qualify. SolarAmerica does not provide tax advice; talk to your tax professional about your situation.
Who qualifies for Affordable Solar in New York?
Households with income below 80% of the area or state median income, whichever is higher, or with an EmPower+, HEAP, SNAP, TANF or SSI award letter from the last 12 months. It pays $0.80 per watt in Con Edison and upstate territory and $0.40 per watt on Long Island, through the installer.
Can I cancel a solar agreement in New York after signing?
Yes. A residential customer can cancel a home solar agreement within three business days of receiving it, without charge or penalty.
Does New York pay for home batteries?
Yes. NYSERDA's residential storage incentive pays per kWh of battery storage through the installer, and National Grid, NYSEG, RG&E, Orange & Rockland and Con Edison pay battery owners for output during summer peak events.
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