Solar by state › New York

Home solar in New York

New York homeowners can still take a state income tax credit of 25% of solar costs (up to $5,000), and most get a 15-year property tax exemption, even though the federal credit ended.

Facts checked 2026-11-01, each with a source link below. Programs change often: confirm with your utility, installer and a tax professional before you sign.

28.6¢average home price per kWh (EIA, August 2026)

Strong case for solarNew York has the second-highest power prices in this group (about 28.7 cents/kWh), net metering for homes, a $5,000 state tax credit, state sales tax exemption and a property tax exemption. New home systems pay a small monthly Customer Benefit Contribution charge.

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Net metering Net metering changing

Home solar still uses net metering: power you send to the grid offsets what you buy at the retail rate. Systems connected on or after January 1, 2022 also pay a fixed monthly Customer Benefit Contribution (CBC) charge based on system size (dollars per kW), which solar credits cannot offset. Larger and community projects are paid under the 'Value Stack' (VDER) instead. Source

2017-03: PSC VDER Phase One order starts move from net metering to Value Stack
2022-01-01: CBC monthly charge applies to new home solar systems

Solar credits (SRECs) No market

New York has no SREC market for home solar. Support comes as an upfront NY-Sun rebate (paid to the installer) instead.

Rebates and incentives

Solar Energy System Equipment Credit (Form IT-255)

25% of costs, up to $5,000; not refundable; unused credit carries forward 5 years

Buyers, lessees or 10-year+ PPA customers for solar at their main home in NY

open tax credit Source

NY-Sun Megawatt Block residential incentive (NYSERDA)

Dollars per watt by region and block; not confirmed

Homes in Con Edison, Long Island and upstate regions; extra for income-eligible homes

waitlist rebate Source

Taxes

Property tax: exempt - 15-year exemption for the added value of solar (RPTL 487) for systems built before January 1, 2030, unless your town, county or school district opted out
Sales tax: exempt from the 4% state sales tax (Tax Law 1115(ee)); local sales tax applies only where the locality has not adopted the exemption Source

Solar laws

Real Property Tax Law 487 (). Property tax exemption for solar for 15 years on systems built before January 1, 2030; localities may opt out. Source
Tax Law 606(g-1) - solar equipment credit (). State income tax credit of 25%, up to $5,000. Bills to raise it to $10,000 (and 40%) were heard in 2026 but not confirmed as passed. Source
PSC Case 15-E-0751 (Value of Distributed Energy Resources) (2017). Created the Value Stack and the post-2022 net metering rules with the CBC charge. Source

Community solar

Available statewide: community solar projects are paid under the Value Stack and subscribers get bill credits, usually at a discount.

Timeline

2017-03 PSC VDER Phase One order (Value Stack)
2022-01-01 New home solar systems start paying the monthly CBC charge
2026-01-01 Federal 25D home solar tax credit no longer available for new systems
2026-05-20 Senate Budget and Revenue hearing on bill to raise state solar credit to $10,000 (outcome unverified)
2030-01-01 RPTL 487 property tax exemption ends for systems built on or after this date

Federal tax credits

The 30% federal tax credit for homeowners who buy solar (Section 25D) ended for systems placed in service after December 31, 2025, so buying no longer earns a federal credit. If you lease or sign a power purchase agreement (PPA), the panels belong to a company that may still claim a business credit under federal deadlines that tighten through 2027. Ask your installer whether that savings is in your price.

Sources

Last checked 2026-11-01. Incentives are not guaranteed and can change or run out. Confirm every figure with your utility, installer and a tax professional before you sign. This page is general information, not tax, legal or financial advice.

We give free home reviews in Maryland, DC and Virginia today. How to compare solar options