The federal residential tax credit is dead in 2026. State incentive programs — from NJ SuSI ($90/MWh for 15 years) to MA SMART (monthly bill credits) — are now the main way to reduce your solar cost.
New York Solar Incentives Overview
New York offers a strong incentive package: NY-Sun upfront rebate ($0.20/W), 25% state tax credit (up to $5,000), plus sales and property tax exemptions.
New York average solar cost: $3.05/W • Payback: 7.9 years • 25-year savings: $142,000
Available Incentive Programs in New York
NY-Sun Residential Incentive
$0.20/W upfront incentive
Max: $5,000
Eligibility:
Residential solar systems in New York (ConEd, National Grid, NYSEG, RG&E, O&R)
How to Claim:
- 1Work with a NYSERDA-approved installer
- 2Installer applies for the incentive on your behalf
- 3Incentive reduces your installation cost at point of sale
Note: Incentive levels decrease as capacity blocks fill
Program websiteNY State Tax Credit
25% of system cost (max $5,000)
Max: $5,000
Eligibility:
New York state taxpayers with residential solar
How to Claim:
- 1File Form IT-255 with your New York state tax return
- 2Claim 25% of net system cost up to $5,000
Note: Ongoing — claim in the tax year of installation
Program websiteSales Tax Exemption
8% sales tax exempt (state + local)
Max: $2,800
Eligibility:
All residential solar in New York
How to Claim:
- 1Automatic — installer excludes sales tax
Note: Permanent exemption
Program websiteProperty Tax Exemption
15-year property tax exemption on solar value
Eligibility:
All residential solar in New York (municipalities must opt in)
How to Claim:
- 1Check with your local assessor; most NY municipalities have opted in
Note: 15-year duration from installation
Program websiteReady to Get a Solar Quote?
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Federal Credit: Not Available for Homeowners
Section 25D (the Residential Clean Energy Credit) expired December 31, 2025. Homeowners in New York who purchase solar with cash or a loan receive $0 in federal tax credits in 2026. Only third-party owned systems (lease/PPA) qualify for the 30% commercial ITC under Section 48/48E.
Other State Incentives
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