New York Solar Tax Credits & Incentives
2026 Guide
New York offers one of the most generous state solar tax credits in the nation — 25% up to $5,000 — plus NYSERDA rebates and full tax exemptions.
Federal Solar Tax Credit Update — 2026
The 30% federal ITC expired for homeowner-owned systems on December 31, 2025.
If you installed solar by Dec 31, 2025, claim the 30% credit on your 2025 tax return. New York's own 25% state credit (up to $5,000) remains one of the most generous in the country.
New York Solar Tax Credits & Incentives
Every credit, exemption, and rebate available in NY
Federal ITC Carryforward
30% of system cost
Claim the full 30% Residential Clean Energy Credit on your 2025 return for pre-2026 installations.
Eligibility
- Installed solar/battery by December 31, 2025
- File 2025 tax return by April 15, 2026
- Nonrefundable — excess carries forward
New York State Solar Tax Credit
25% up to $5,000
One of the most generous state solar tax credits in the nation. 25% of system cost up to $5,000. Uniquely, this applies to both purchased and leased systems.
Eligibility
- NY resident homeowner
- Available for BOTH purchased AND leased systems (10+ year lease/PPA)
- Claimed on NY state income tax return
NY-Sun (NYSERDA) Rebate
$0.20/watt upfront
Upfront rebate through NYSERDA. Note: this rebate may be transitioning to focus on low-to-moderate income households.
Eligibility
- NY homeowner with solar installation
- May be limited to low-to-moderate income households
- Applied directly to installation cost
Sales Tax Exemption
Statewide (up to 8%)
Full state sales tax exemption on solar energy systems. With NY's combined state and local rates, this can save $1,500–$2,000+ on a typical system.
Eligibility
- Any solar system purchase in NY
- Statewide exemption
- Automatic at purchase
Property Tax Exemption
15-year exemption
15-year exemption from increased property taxes due to solar installation. Provides long-term protection from higher assessments.
Eligibility
- Any NY homeowner with solar
- Residential property
- Exemption lasts 15 years
Key Deadlines for New York Solar Owners
Don't miss these time-sensitive opportunities
April 15, 2026CRITICAL
Last day to file 2025 taxes and claim the 30% federal ITC
July 4, 2026
Deadline for third-party providers to begin construction for Section 48E credits
Net Metering in New York
Full retail rate net metering for systems up to 25 kW. Monthly credit rollover with annual cash-out at avoided cost rate. Transitioning to VDER framework for some customer classes.
Frequently Asked Questions
Common questions about solar tax credits in New York
What is the New York state solar tax credit in 2026?
New York offers a 25% state tax credit on solar system costs, up to $5,000. This is one of the most generous state solar credits in the nation. Uniquely, it's available for both purchased AND leased systems (10+ year lease/PPA agreements).
Can I stack the NY state credit with the federal solar tax credit?
If you installed by December 31, 2025, yes — you can claim both the 30% federal ITC and the 25% NY state credit. For 2026 installations, you can still claim the NY state credit even though the federal homeowner credit has expired.
How much is the NYSERDA solar rebate in 2026?
The NY-Sun program offers $0.20/watt in upfront rebates. On a 7 kW system, that's $1,400 off your installation cost. Note: this rebate may be transitioning to focus on low-to-moderate income households.
Does New York have net metering for solar?
Yes, New York offers full retail rate net metering for residential systems up to 25 kW. Credits roll over monthly with an annual cash-out at the avoided cost rate. Some customer classes are transitioning to the VDER framework.
Can I get the NY solar tax credit if I lease my panels?
Yes! New York's solar tax credit is unique in that it applies to both purchased AND leased systems, as long as the lease or PPA is for 10 years or more. This makes it accessible regardless of how you finance your solar installation.
Solar Tax Credits in New York Cities
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