State solar guide
New York has strong solar fundamentals in 2026. The federal residential credit expired December 31, 2025, but state incentives and net-metering rules still support solid payback timelines for qualified homeowners.
Sources: ElectricChoice June 2026 / EIA Electric Power Monthly | NREL PVWatts (verify at your assessment) | EnergySage mid-2026 | Federal residential credit: Section 25D expired December 31, 2025, H.R.1 (One Big Beautiful Bill Act).
Net metering
New York residential solar systems under 25 kW continue to qualify for full retail 1:1 net metering in most utility territories as of mid-2026, meaning every kilowatt-hour exported to the grid earns a credit at the full retail rate of approximately 30 cents per kWh. The state is gradually transitioning to the Value of Distributed Energy Resources (VDER) framework, which compensates exports at time-of-day and location-adjusted rates that may be above or below retail depending on dispatch timing and grid location. Con Edison (New York City and Westchester) has confirmed 1:1 net metering availability in 2026. Homeowners should verify their enrollment option with their specific utility before signing a contract, as VDER and traditional net metering coexist during the transition period. As of 2026-06, verify current policy at dsireusa.org or with your installer.
Con Edison (New York City and Westchester), National Grid (Long Island and upstate), Central Hudson (Hudson Valley), Orange and Rockland (Rockland and Orange counties). VDER transition is gradual; most homeowners interconnecting in 2026 retain conventional net metering access. Verify current enrollment option with your utility before signing a contract.
Program: NM1_full_retail. Last verified: June 1, 2026. DSIRE source (opens in new tab).
Verify with your utility
Net-metering rules change by utility and program cycle. Confirm current export credit rates and eligibility with your specific New York utility before contracting. Current program details at DSIRE (opens in new tab).
State incentive stack
The federal residential credit expired December 31, 2025. The programs below are what remains for New York homeowners. Amounts and availability change; every program is date-stamped and linked to its DSIRE source.
Federal residential solar credit (Section 25D): expired. The Section 25D residential investment tax credit expired December 31, 2025. The residential credit rate is 0%. State and local incentives below may still significantly reduce your net system cost. Commercial systems still qualify for Section 48E (30%).
| Program | Benefit | Eligibility | Status | Source |
|---|---|---|---|---|
| New York Solar Energy System Equipment Credit State income tax credit Verify current eligibility and cap with a tax professional. Cap increased January 1, 2026 via A01373, confirm current law has not been further amended. | 26% of qualified expenditures, maximum $10,000 26% of the cost of a residential solar energy system, including installation, placed in service on or after January 1, 2026. Previous cap was $5,000; increased to $10,000 via bill A01373 effective January 1, 2026. Refundable for low- and moderate-income residents and disadvantaged community residents. Carryforward up to 5 years for unused credit amount. | New York State resident. System must be placed in service at the taxpayer's primary or secondary residence in New York. Filed via Form IT-255. | Active | DSIRE (opens in new tab) |
| NY-Sun Megawatt Block Incentive (NYSERDA) Upfront per-watt rebate Block funding is limited. Once a block fills, the incentive steps down to a lower rate or closes. Verify current block status and MW remaining with NYSERDA or your installer before proceeding. | Approximately $0.20 per watt in current active blocks (verify with NYSERDA dashboard before signing) Declining per-watt upfront rebate administered by NYSERDA through the NY-Sun program. Rebate amount steps down as MW blocks fill. Con Edison Block 9 active as of mid-2026; Upstate blocks near program end. Installer applies on behalf of homeowner at interconnection. | New York residential customers in Con Edison, National Grid, NYSEG, RG&E, Central Hudson, or Orange and Rockland territories. Must use a NYSERDA-registered installer. | Limited | DSIRE (opens in new tab) |
| New York Property Tax Exemption (RPTL Section 487) Property tax exemption Local municipality opt-out is possible. Confirm Section 487 participation with your local assessor before relying on this exemption. | Full assessed value increase excluded for 15 years (value varies by system size and local assessment rate) 15-year full exemption from property tax assessment increases attributable to a solar energy system installation. Applies statewide but subject to local municipality opt-out, individual towns, cities, and counties may have opted out of the exemption. | New York residential property. System must be placed in service at the property. Verify with your local assessor that the municipality has not opted out of Section 487. | Active | DSIRE (opens in new tab) |
| New York State Sales Tax Exemption on Solar Equipment Sales tax exemption Local sales tax exemption participation varies by county and municipality. Confirm with your installer whether the full local rate is exempt in your jurisdiction. | Full exemption from 4% state sales tax; local exemptions vary Solar energy system equipment and installation labor exempt from New York State 4% sales tax. Most county and local jurisdictions also exempt, typical system saves approximately $2,000 in sales tax. | Residential solar energy systems purchased and installed in New York State. Battery storage sales tax exemption was active through June 1, 2026, verify current status. | Active | DSIRE (opens in new tab) |
Data last verified June 1, 2026. Incentive programs change; verify current amounts and availability at dsireusa.org (opens in new tab) before committing to a project.
Battery storage incentives in New York
Battery storage sales tax exemption active through June 1, 2026 (verify current status). No statewide battery rebate program equivalent to CT Green Bank or GMP (VT) as of mid-2026. Battery storage adds value by improving self-consumption under VDER transition.
Savings example
This example uses real New York market data. No federal residential credit is applied. Figures are illustrative; your in-home assessment uses your actual utility bills and the current rate schedule for your specific utility.
Annual production estimated at 11,500 kWh based on Con Edison territory at 3.2 peak sun hours. Full retail 1:1 net metering at 30 cents per kWh. Rate escalation at 3% annually. System price at $2.75 per watt market average. Federal residential credit: $0 (expired). NY-Sun rebate assumes current Con Edison block availability, verify with NYSERDA before signing. This example reflects a favorable Con Edison (NYC and Westchester) scenario where 30-cent electricity rates and a high state credit produce faster payback than the statewide 8 to 10 year headline, which averages across upstate regions with lower electricity rates and more limited sun hours. Figures are illustrative; your in-home assessment uses your actual utility bills.
New York homeowner savings example, Con Edison territory (illustrative)
Illustrative example. Federal residential credit: $0 (Section 25D expired December 31, 2025). Your estimate will use your actual utility bills and current rate schedule.
Permitting
New York solar permitting is managed at the local Authority Having Jurisdiction (AHJ) level. No statewide permit fee cap equivalent to California AB 1124 exists. Permit timelines vary significantly by municipality: New York City (DOB) averages 4 to 8 weeks for residential solar; Westchester and Nassau counties average 3 to 6 weeks; upstate cities and towns range from 2 to 8 weeks. SolarAPP+ automated permit approval is not widely adopted in New York as of 2026, most jurisdictions use standard plan review. Contract to interconnection and energization typically runs 10 to 20 weeks statewide. Utility interconnection review by Con Edison, National Grid, or Central Hudson adds 4 to 10 weeks after permit issuance.
Verify permit timelines directly with your installer for your specific municipality. NYC DOB and Long Island utility territories have historically longer queues.
Commercial solar in New York
The commercial solar credit (Section 48E, 30 percent) remains available for qualifying commercial projects. Construction must begin by July 4, 2026 to qualify for the full placed-in-service window. Combined with MACRS accelerated depreciation and 100 percent first-year bonus depreciation, the combined first-year federal benefit can reach 45 to 55 percent of project cost for many New York business owners. Direct Pay is also available for nonprofits, municipalities, and other tax-exempt entities.
Commercial solar overviewCommercial solar projects must begin construction by July 4, 2026 to qualify for the 30 percent Section 48E federal tax credit. After that date, the system must be placed in service by December 31, 2027.
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