New York Solar Incentives, Tax Credits and Rebates

Residential solar panel incentives in New York

New York offers several state and local incentives that can reduce the cost of installing solar panels. Available benefits include tax credits, tax exemptions, NYSERDA financing and NY-Sun incentives, although eligibility and incentive amounts vary by location.

Solar tax breaks in New York

New York residents may qualify for several tax credits and exemptions when they install solar energy systems.

• State solar tax credit: New York’s Solar Energy System Equipment Credit is worth 25% of eligible solar costs, up to $5,000. The system must be installed at your principal residence in New York. Homeowners who buy their systems can qualify, as can residents who lease solar equipment or sign a solar power purchase agreement (PPA) lasting at least 10 years. The credit is nonrefundable, but unused amounts can be carried forward for up to five years.
• Solar sales tax exemption: Qualifying residential solar equipment and installation are exempt from New York’s 4% state sales and use tax and the 0.375% Metropolitan Commuter Transportation District tax. Local sales taxes vary: Some counties and cities also exempt residential solar, while others still impose their local tax.
• Solar property tax exemption: Under New York Real Property Tax Law Section 487, eligible solar systems generally receive a 15-year exemption from property taxes on the increase in assessed value caused by the installation. However, individual taxing jurisdictions can opt out of the exemption, so availability depends on where you live. For most residential solar systems, the current law applies to eligible systems constructed before Jan. 1, 2030.
• Energy conservation improvements property tax exemption: Certain energy conservation improvements on one- to four-family homes can also be exempt from property taxes on the resulting increase in assessed value. The exemption applies to qualifying improvements that meet state financing or tax-credit requirements, and covers real property taxes and special ad valorem levies, but not special assessments.
• NYC solar and energy storage property tax abatement: New York City property owners who install qualifying solar photovoltaic systems or electric energy storage equipment may receive an abatement equal to 30% of eligible installation costs, up to $250,000. The benefit is spread over four years and is capped at $62,500 per year or the property’s annual tax liability, whichever is lower. The current program applies to eligible systems placed in service from Jan. 1, 2024, through Dec. 31, 2034.
• NYC residential solar sales tax exemption: New York City also exempts qualifying residential solar equipment and installation from its local sales tax. Combined with the state exemption, qualifying residential solar installations in the city have a 0% sales and use tax rate.
• Green building property tax exemption: Local governments and school districts can offer property tax exemptions for buildings that meet qualifying green-building standards, such as LEED or Green Globes. The amount and length of the exemption depend on the certification level and the rules adopted by the local jurisdiction. This is a broader green-building incentive, so installing solar alone doesn’t necessarily make a property eligible.

Residential solar loan programs

The New York State Energy Research and Development Authority (NYSERDA) offers financing that can help homeowners pay for solar panels and other clean-energy improvements. Homeowners generally must complete a no-cost home energy assessment before using a NYSERDA residential loan. Loan approval also depends on underwriting criteria such as credit history and debt-to-income ratio.

• On-Bill Recovery Loan: Eligible customers of Central Hudson, Con Edison, PSEG Long Island, NYSEG, National Grid, Orange & Rockland and Rochester Gas & Electric can finance qualifying improvements and repay the loan through their utility bill. Loans range from $1,500 to $25,000, with terms of five, 10 or 15 years. The estimated monthly energy savings must exceed the monthly loan payment. In some cases, the remaining loan balance can transfer to a new owner if the home is sold.
• Smart Energy Loan: Homeowners or authorized representatives can borrow $1,500 to $25,000 for qualifying solar and other energy improvements, with terms of five, 10 or 15 years. Unlike an On-Bill Recovery Loan, payments are made directly rather than through the utility bill. If you sell the property, you remain responsible for the outstanding balance.

NY-Sun solar incentives

NY-Sun offers upfront incentives for qualifying solar installations, but availability varies by utility territory and can change as funding is committed. NYSERDA updates its incentive dashboards as blocks fill, so homeowners should check current availability before signing a solar contract.

For standard residential solar, NYSERDA's Upstate dashboard currently lists Residential Block 14 for installations in NYSEG, Rochester Gas & Electric and National Grid electric service territories. Standard residential incentives have been phased out in the Con Edison and Long Island regions.

Income-qualified homeowners may also be eligible for the Affordable Solar Residential Incentive. As of August 2026, NYSERDA says this incentive is currently available only in PSEG Long Island territory, where qualifying projects can receive $0.40 per watt of installed capacity. Applicants must meet income requirements and verify homeownership and occupancy.

Pro tip

Because NY-Sun funding and incentive blocks can change, check NYSERDA's current incentive dashboard or ask a participating NY-Sun contractor what incentives are available for your property.

What to know about net metering in New York

If your solar panels produce more electricity than your home uses, you can send the excess power to the grid and receive credits on your electric bill.

How net metering works

Eligible residential solar customers can still use Phase One net metering in New York. Under this system, excess solar generation earns bill credits that can offset electricity you use from the grid.

Customers with solar systems interconnected on or after Jan. 1, 2022, may also have to pay a monthly Customer Benefit Contribution, or CBC. The charge is based on your system’s DC capacity and varies by utility. CBC rates are updated annually, so the amount isn’t locked in when your system is installed.

For example, Con Edison’s 2026 residential CBC is $1.29 per kilowatt per month for net-metered solar. That means a 10-kW system would pay about $12.90 per month.

What is the Value Stack?

Some eligible customers can choose the Value of Distributed Energy Resources, or Value Stack, instead of Phase One net metering.

Rather than using traditional net-metering credits, the Value Stack calculates the value of electricity sent to the grid based on factors such as when and where it’s produced and the benefits it provides to the electric system. That means the value of your credits can vary more than under net metering.

Customers who choose the Value Stack generally pay a lower CBC. For Con Edison residential customers, the 2026 Value Stack CBC is $0.65 per kilowatt per month, or about $6.50 per month for a 10-kW system.

Which option is better?

Neither option is automatically better for every homeowner. Net metering offers a more straightforward way to earn bill credits, while Value Stack compensation depends more heavily on when and where your solar energy is sent to the grid.

Your savings can also depend on your utility, system size and electricity usage. If you’re eligible for both options, ask your solar installer or utility to compare your estimated savings under each one before deciding.

Did you know?

On average, New York homeowners with solar panels can save $57,678 in total avoided utility costs over 25 years.

Community solar in New York

If you rent your home or your roof isn’t suitable for solar panels, community solar lets you benefit from an off-site solar project instead. Homeowners, renters, businesses and multifamily properties can subscribe to a community solar project and receive credits on their electric bills based on the electricity the project produces.

New York has more than 800 community solar projects and leads the U.S. in community solar capacity. Eligible low-income households can also receive electricity bill savings at no cost through New York’s Statewide Solar for All program, which connects participating utility customers with local community solar projects without upfront costs, monthly charges or installation requirements.

How much are solar panels in New York?

Before any financial incentives, solar panel costs in New York typically range from $13,867 to $27,734. On the higher end, Sasha in the Bronx told us they invested $50,000 going solar. The table below shows average solar panel installation cost by system size in New York and select cities in the Empire State.

How can I pay for solar panels?

Paying upfront is the most obvious way to pay for solar panels, but many don't have that kind of money saved up. If you're one of those people, you can finance solar panels with a solar loan. Leasing or entering a power purchase agreement is often cheaper upfront.

Federal mortgage options for solar panels

The 30% federal residential solar tax credit expired at the end of 2025, but some federally backed financing options remain available.

• FHA financing: Eligible borrowers may be able to finance qualifying solar panels or other cost-effective energy improvements as part of an FHA-insured home purchase or refinance mortgage.
• Financing for multifamily properties: Fannie Mae offers financing incentives for qualifying apartment buildings and other multifamily properties that invest in solar or energy-efficiency improvements. These programs are designed for multifamily property owners and generally don’t apply to owner-occupied, single-family homes.

» SOLAR PANELS: Lease vs. buy

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A good solar company helps you navigate local incentives, permitting and net metering policies. Compare our choices for the top solar companies in New York to learn more.

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Bottom line

Buying solar panels is a big upfront investment, but state and local incentives, plus New York's generally solar-friendly policies, help make it more affordable. The ConsumerAffairs Research Team conducted an in-depth analysis to determine the average costs of going solar. Turns out, it's worth it for many homeowners, particularly in New York. The table below shows solar costs vs. savings in New York and nearby states.