New York Solar Incentives & Rebates Guide 2026

The federal Investment Tax Credit (ITC) allows New York homeowners to deduct 30% of the total cost of a solar energy system from their federal income taxes. For a typical 6kW system costing $17,760 in New York, that's a direct tax credit of $5,328. This isn't a deduction — it's a dollar-for-dollar reduction of your tax bill.

The 30% ITC is available through 2032 under the Inflation Reduction Act, then steps down to 26% in 2033 and 22% in 2034. There's no maximum cap on the residential credit. If your tax liability is less than the credit amount, you can roll the remaining credit forward to the next tax year. The system must be installed on your primary or secondary residence, and you must own it (leased systems don't qualify for the homeowner credit).

In addition to the federal ITC, New York offers its own state solar tax credit: 25% of costs, up to $5,000. This state credit can be claimed alongside the federal credit, stacking your total tax savings. For a 6kW system, the New York state credit saves you approximately $5,000.

Combined with the federal ITC, your total tax credits amount to $10,328 — reducing your net system cost to just $7,432. That's a 58% reduction from the gross cost.

Great news for New York homeowners: Solar energy systems are exempt from property tax assessments. 15-year property tax exemption Studies show solar adds 3-4% to home values. For a $300,000 home, that's roughly $12,000 in added value — and with New York's property tax exemption, you save approximately $132 per year in property taxes you'd otherwise owe on that increased value.

New York exempts solar energy equipment from state sales tax. On a 6kW system costing $17,760, this saves you approximately $1,154 at the point of purchase. This is an immediate, upfront savings that reduces your out-of-pocket cost before even accounting for tax credits.

Net metering policy: Varies by Utility. Transitioning to Value of Distributed Energy Resources (VDER) for new interconnections; legacy customers have retail rate NEM The current system size cap is 25 kW residential.

Net metering policies in New York vary by utility. Contact your local electric provider to understand the specific buyback rate and any system size limitations that apply to your service territory.

NY-Sun Megawatt Block: ~$0.20-$0.40/W (~$2,000-$4,000 for 10kW)

Utility rebates and state programs can change frequently. We recommend checking with your local utility and the Database of State Incentives for Renewables & Efficiency (DSIRE) for the most current programs available in your area.

New York has a mandatory Renewable Portfolio Standard (RPS) target of 70% renewable by 2030, 100% clean by 2040. This legally binding target drives continued investment in renewable energy infrastructure and often supports solar-friendly policies like net metering and SREC programs. A strong RPS is generally good news for solar homeowners, as it creates market demand for renewable energy and helps maintain favorable solar policies.