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Solar Rebates in New York (2026)

New York stacks the federal 25D credit (30%) with one of the most generous state-level solar tax credits in the country: 25% of system cost up to $5,000. On top, NY-Sun MW Block administered by NYSERDA pays per-kW upfront rebates that vary by zone — currently $0.20–$0.40 per watt. Local property-tax exemptions apply in 80%+ of New York jurisdictions (15-year exemption is the default). Net metering uses the Value of Distributed Energy Resources (VDER) tariff — slightly lower than full retail but still meaningful, around $0.10–$0.13/kWh in ConEd territory. Total stack regularly delivers 50%+ system cost coverage for downstate homeowners.

New York solar programs available

Program Amount Type Authority Deadline
Federal 25D Residential Clean Energy Credit 30% Tax credit IRS Dec 31 2032
NY State Solar Energy System Equipment Credit 25% up to $5,000 Tax credit NY Department of Taxation and Finance Through 2032
NY-Sun MW Block $0.20–$0.40 per watt upfront Rebate NYSERDA Annual block — until depleted
NY-Sun Affordable Solar (Income-qualified) $0.80–$1.00 per watt upfront Rebate NYSERDA Ongoing
Property Tax Exemption (RPTL §487) 100% added value, 15-year Tax credit Local jurisdictions opt-in 15 years
NYC Real Property Tax Abatement Up to 30% project cost over 4 years Tax credit NYC Department of Buildings Apply before installation
VDER Net Metering Value of DER stack: energy + capacity + demand reduction + LSRV + environmental Net metering NY PSC Ongoing
Sales Tax Exemption (Solar Equipment) 100% state + local sales tax Tax credit NY State Permanent
On-Bill Recovery Loan Up to $25,000 — repaid via utility bill Loan NYSERDA / Energy Finance Solutions Ongoing

Eligibility quick check

Do all NY counties offer the property-tax exemption?

No — the RPTL §487 exemption is opt-in by jurisdiction. Most major counties (Westchester, Suffolk, Nassau, NYC, Albany) participate. A handful of Long Island school districts do not.

How does NYC property-tax abatement differ from RPTL §487?

NYC uses its own Solar Electric Generating System (SEGS) Property Tax Abatement — up to 30% of project cost spread over 4 years. Apply before installation begins.

Income limits for NY-Sun Affordable Solar?

≤80% Area Median Income for the Affordable Solar tier. Roughly 2x the standard rebate per watt.

How to stack with the federal credit

New York programs combine with the federal 25D 25D Credit (30% of cost, no cap) — see the 25D guide for filing instructions and forms.

Worked stacking example

Brooklyn homeowner, 7 kW system at $22,000: NY-Sun rebate $1,400 ($0.20/W) → basis $20,600. Federal 25D 30% = $6,180. NY State 25% = $5,000 cap. NYC SEGS abatement ~$5,500 over 4 years. Total incentives ~$18,080 on $22,000 system.

Frequently asked questions

How does the NY State Solar Tax Credit work? +
Form IT-255 — claim 25% of total system cost up to $5,000 against NY state income tax. Carryforward up to 5 years if the credit exceeds tax owed.
Does NY-Sun stack with the state tax credit? +
Yes. The NY-Sun upfront rebate reduces the cost basis used for both federal 25D and state credit calculations. State rebate first, then 30% federal then 25% state on the reduced basis.
What is VDER and why did NY drop 1:1 net metering? +
Value of Distributed Energy Resources is a stack of credits — energy value + capacity + demand reduction + locational system relief value + environmental — that approximates the locational value of distributed solar. For ConEd (NYC) territory, residential VDER is comparable to retail (~$0.18/kWh blended). For upstate utilities, VDER is lower than retail.
Can renters benefit? +
Community Distributed Generation (CDG) — community solar shares — let renters subscribe to local solar farms and get bill credits without owning equipment. CDG does not qualify for federal/state credits but lowers utility bills 5–15%.
How long does NY-Sun MW Block reservation take? +
Installer files reservation post-contract. Approval typically 2–4 weeks. Reservations expire after 12 months — install must complete by then.
What about sales tax on inverters/batteries? +
NY exempts the entire solar energy system (panels, inverters, mounting, batteries) from state and local sales tax permanently.
Does ConEdison or PSEG matter for incentives? +
NY-Sun and state credit are statewide. VDER values vary by utility load zone — ConEdison Zone J (NYC) has the highest LSRV in the state.
Are batteries covered by NY-Sun? +
Standalone batteries are not under NY-Sun (which is solar-specific). NYSERDA Energy Storage Incentive pays $250–$350 per kWh for residential battery storage paired with solar.
NYC building department permits — how complex? +
NYC solar permitting requires PE-stamped drawings, DOB submission, and FDNY review for batteries. Typical timeline 3–6 months. Long Island/Westchester much faster (4–8 weeks).
On-Bill Recovery Loan — is it recommended? +
OBR ties loan repayment to your utility bill at fixed APR (typically 3.49–6.49%). Cleaner than HELOC for many homeowners. Approval requires utility account standing.

Related solar stacks and New York pages

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