Solar Incentives in New York (2026)
The 30% federal Residential Clean Energy Credit expired on December 31, 2025, so homeowners who buy a system in New York in 2026 no longer receive a federal tax credit. That makes New York's state and utility incentives — and its net-metering rules — the main levers for lowering cost and shortening payback today.
Federal tax credit (ended for 2026 purchases)
The 30% federal credit (Section 25D) was repealed by the 2025 budget law and is no longer available for systems placed in service after December 31, 2025. If your system was installed and operating by the end of 2025, you can still claim the 30% credit on your 2025 return. The one remaining federal route in 2026 is a third-party-owned system: with a solar lease or PPA, the company that owns the panels can claim the separate business clean-energy credit (Section 48E, available through 2027) and may pass part of those savings to you through lower payments — though you won't own the system. Consult a tax professional for your situation.
New York state & utility incentives
| Incentive | What it offers |
|---|---|
| NY-Sun rebate | Per-watt rebate that declines over time as regional targets fill — applied upfront by your installer. |
| State solar tax credit | 25% of system cost, up to $5,000, against New York income tax — one of the most generous state credits. |
| Sales & property tax exemptions | Solar is exempt from sales tax and from added property-tax assessment. |
Net metering in New York
Net metering with the VDER 'Value Stack' for newer systems; many residential systems still benefit from near-retail credit.
See solar panel costs near you
Compare local solar prices by city, then stack these New York incentives on top.
Solar panel cost by city →Frequently asked questions
- What solar incentives are available in New York?
- The 30% federal Residential Clean Energy Credit expired December 31, 2025, so homeowners who buy in 2026 no longer receive it. New York still offers NY-Sun rebate, State solar tax credit, Sales & property tax exemptions, plus net metering. A lease or PPA can still capture a federal benefit through the installer.
- Is there still a federal solar tax credit in 2026?
- Not for homeowners who buy a system — Section 25D expired at the end of 2025 under the 2025 budget law. The only remaining federal route is a third-party-owned system (lease or PPA), where the installer claims the business clean-energy credit (Section 48E, available through 2027) and may pass part of the savings to you.
- Does New York have net metering?
- Net metering with the VDER 'Value Stack' for newer systems; many residential systems still benefit from near-retail credit.
Incentive programs change often — verify current details on DSIRE and with your utility before deciding.