New York Solar Incentives at a Glance
Avg Cost per Watt
$3.10
6 kW System Cost
$18,600
Avg Electricity Rate
$0.24/kWh
Payback Period
6-9 years
25-Year Savings
$42,000-$62,000
Total Installations
450,000+
| State Tax Credit | Yes - NY State Solar Tax Credit |
| Net Metering | Full retail rate (Phase One VDER for larger systems) |
| Property Tax Exemption | Yes |
| Sales Tax Exemption | Yes |
If you are considering going solar in New York, understanding the full range of available incentives is essential to maximizing your return on investment. This guide covers every New York solar incentive available in 2026 -- from state tax credits and utility rebates to net metering policies and tax exemptions -- so you can make an informed decision before signing a contract.
Federal Tax Credit No Longer Available
The federal residential solar tax credit (ITC) under Section 25D expired on December 31, 2025. It is no longer available for new residential solar installations in 2026. This guide focuses exclusively on New York state and local incentives that are still available to help reduce your solar costs.
New York State Tax Credits and Rebates
New York offers a state solar tax credit equal to 25% of qualified solar energy system expenditures, capped at $5,000. This is one of the most generous state solar tax credits in the nation. The credit can be carried forward for up to 5 years if your tax liability is less than the credit amount.
Net Metering in New York
New York Net Metering Policy: Full retail rate (Phase One VDER for larger systems)
New York offers full retail-rate net metering for residential solar systems under 25 kW through the state's major utilities. Larger systems and community solar projects transition to the Value of Distributed Energy Resources (VDER) tariff, which compensates based on the time, location, and environmental value of the energy produced. Residential rooftop systems remain on favorable net metering terms.
Net metering is one of the most important factors in your solar ROI. It determines how much you are credited for excess energy your panels send back to the grid. In New York, the net metering landscape directly affects your payback period and 25-year savings projections.
Property and Sales Tax Exemptions
Property Tax Exemption
Yes
New York Real Property Tax Law Section 487 provides a 15-year property tax exemption for solar energy systems. Local municipalities must opt in, and the vast majority have done so. This exemption covers the increase in assessed value attributable to the solar installation.
Sales Tax Exemption
Yes
New York exempts solar energy system equipment from the state's 4% sales tax. Many counties and cities also exempt solar from local sales taxes. On a $18,600 system, this can save $700-$1,500 depending on local tax rates.
Tax exemptions reduce the total cost of going solar and provide ongoing savings. A property tax exemption means you add home value without increasing your tax bill. A sales tax exemption reduces the upfront purchase price. Together, these exemptions can save New York homeowners hundreds to thousands of dollars.
Utility Rebate Programs in New York
Beyond state-level incentives, many New York utilities offer their own solar rebate and incentive programs. These can significantly reduce your out-of-pocket costs or provide ongoing production-based income.
NY-Sun Incentive Program (NYSERDA)
NYSERDA's NY-Sun program provides upfront incentives ($/watt) for residential solar installations. Incentive levels vary by utility territory and decline as capacity blocks fill. Current incentives range from $0.20-$0.40 per watt depending on region and availability.
Con Edison Smart Home Rate
Con Edison's time-of-use rates reward solar customers who shift usage to off-peak hours. Combined with net metering, this can maximize the value of your solar production.
EmPower+ Program
NYSERDA's EmPower+ program provides no-cost energy efficiency upgrades and solar installations for income-eligible households. This is one of the most comprehensive low-income solar programs in the country.
New York's Climate Leadership and Community Protection Act (CLCPA) mandates 70% renewable electricity by 2030 and 100% zero-emission electricity by 2040, driving aggressive solar incentives. The state has one of the nation's largest community solar markets, and the Affordable Solar program provides additional incentives for low-to-moderate income households.
Solar Cost and Savings in New York
| Metric | New York Average |
|---|---|
| Cost per watt (before incentives) | $3.10 |
| 6 kW system cost (before incentives) | $18,600 |
| Average electricity rate | $0.24/kWh |
| Estimated payback period | 6-9 years |
| Estimated 25-year savings | $42,000-$62,000 |
| Total installations statewide | 450,000+ |
These figures represent statewide averages. Your actual costs and savings will depend on your specific location, roof characteristics, electricity usage, utility rate plan, and which incentives you qualify for. We strongly recommend getting at least three quotes from licensed installers to compare pricing for your specific situation.
For a detailed breakdown of solar costs across all 50 states, see: Solar Panel Cost by State (2026).
Is Solar Worth It in New York?
New York offers one of the strongest solar incentive packages in the country: a 25% state tax credit (up to $5,000), NYSERDA upfront incentives, full retail net metering, property and sales tax exemptions, and high electricity rates that accelerate payback. Despite higher installation costs and moderate sunlight, most homeowners see payback in 6-9 years.
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Get Your Free New York Solar Quote →Frequently Asked Questions
What is the New York state solar tax credit?
New York offers a state solar tax credit of 25% of your solar system cost, up to a maximum of $5,000. This is in addition to any available federal credits. The credit is non-refundable but can be carried forward for up to 5 years. On a $18,600 system, you would receive the full $5,000 cap.
What are NYSERDA solar incentives?
NYSERDA administers the NY-Sun incentive program, which provides upfront rebates of $0.20-$0.40 per watt for residential solar installations. For a 6 kW system, this translates to $1,200-$2,400 in upfront savings. Incentive levels vary by utility territory and decline as capacity blocks are filled.
Does New York have net metering?
Yes. New York offers full retail-rate net metering for residential solar systems under 25 kW. Your utility credits you at the full retail rate for excess solar energy you send to the grid. Credits can be banked and rolled over month to month, settling annually.
How much does solar cost in New York in 2026?
The average cost of a 6 kW solar system in New York is approximately $18,600 ($3.10 per watt) before incentives. After the NY state tax credit ($5,000) and NYSERDA incentives ($1,200-$2,400), net cost drops to approximately $11,200-$12,400. New York's high electricity rates help offset the higher installation costs.
Is community solar available in New York?
Yes, New York has one of the nation's largest community solar markets. If your roof is not suitable for solar, you can subscribe to a community solar project and receive credits on your utility bill, typically saving 5-15% on your electricity costs with no upfront investment or installation required.
Learn More About Solar Incentives and Costs
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