New York is one of the best states to go solar in 2026 — and it has a major advantage that most states lost at the end of 2025: a state solar tax credit that is still very much alive. While the federal 30% ITC expired, New York’s own 25% credit (up to $5,000) remains, and it stacks with the NY-Sun upfront incentive, net metering, and a property tax exemption. Combined with high electricity rates, that makes New York’s solar economics among the strongest in the country.
Use our Solar Savings Calculator to get an instant estimate based on your New York ZIP code and monthly electricity bill.
New York Solar at a Glance (2026)
| Factor | New York 2026 |
|---|---|
| Avg. electricity rate | ~$0.23/kWh (well above national avg) |
| Avg. 7 kW system cost | ~$19,300 |
| Federal ITC | ❌ Expired Dec 31, 2025 |
| NY State Solar Tax Credit | ✅ 25%, up to $5,000 (still active) |
| NY-Sun incentive | ✅ Upfront $/watt rebate (declining blocks) |
| Net metering / VDER | ✅ Available (residential net metering preserved) |
| Property tax exemption | ✅ 15-year (RPTL §487, local opt-out) |
| Sales tax exemption | ✅ State sales tax exempt |
| Avg. payback period | 6–9 years |
What Solar Incentives Are Available in New York in 2026?
The federal 30% residential ITC (Section 25D) expired December 31, 2025 — see our full ITC status guide. But New York’s state-level stack remains one of the richest in the nation:
1. New York State Solar Energy System Equipment Credit (25%)
This is the headline incentive — and it survived the federal ITC expiration because it’s a state credit. Under NY Tax Law §606(g-1):
- 25% of your solar system cost, capped at $5,000
- Applies to purchased systems and qualifying leases/PPAs
- Nonrefundable, but unused credit carries forward up to 5 years
- Claimed on Form IT-255 with your New York State income tax return
On a $19,300 system, the 25% credit reaches the full $5,000 cap — a substantial, immediate reduction that no longer exists at the federal level.
2. NY-Sun Megawatt Block Incentive
Administered by NYSERDA, NY-Sun provides an upfront $/watt incentive paid through your installer (so it lowers your purchase price directly). The amount depends on your region (Upstate, Con Edison, Long Island/PSEG) and the current “block” — incentives decline as each block fills, so installing sooner generally captures a higher rate.
3. Net Metering / VDER
Residential customers can take net metering, crediting exported solar against grid consumption. New York has been transitioning commercial/large systems to the Value of Distributed Energy Resources (VDER) “Value Stack,” but residential rooftop solar generally retains net metering–style crediting. A modest Customer Benefit Contribution (CBC) charge may apply. Confirm current terms with your utility (Con Edison, National Grid, NYSEG, etc.).
4. Property Tax Exemption (15-Year, RPTL §487)
New York exempts the added home value from solar from property taxes for 15 years under Real Property Tax Law §487. Note that local jurisdictions are allowed to opt out, so confirm your town/county participates.
5. State Sales Tax Exemption
Residential solar systems are exempt from New York’s 4% state sales tax (and many localities also exempt their portion).
New York Solar Savings Example (2026)
For a New York homeowner with a $180/month electricity bill ($2,160/year):
| Amount | |
|---|---|
| 7 kW system gross cost | $19,300 |
| NY-Sun upfront incentive (varies) | −$700 to −$2,100 |
| NY State Tax Credit (25%, capped) | −$5,000 |
| Estimated net cost | ~$12,200–$13,600 |
| Annual electricity savings | ~$1,800–$2,200 |
| Property tax exemption | 15 years, varies by locality |
| Payback period | 6–9 years |
| 25-year net savings | ~$38,000–$55,000 |
Estimates based on a 7 kW system producing ~8,600 kWh/year at New York’s ~4.2 peak sun hours, with high retail rates driving strong per-kWh savings. Actual results vary by utility and region.
Get your free New York solar estimate → Use our Solar Calculator
New York Electricity Rates and Solar ROI
New York’s average rate of ~$0.23/kWh is well above the national average (~$0.16/kWh), and downstate (Con Edison) rates can run higher still. New York gets fewer peak sun hours than Sun Belt states (~4.0–4.5/day), but its high rates plus the 25% state credit more than compensate — which is why payback periods are short (6–9 years) despite the cloudier climate.
New York regions and their solar potential:
| Area | Avg. Peak Sun Hours/Day | Notes |
|---|---|---|
| Long Island (PSEG) | 4.4 | High rates, strong NY-Sun block |
| New York City (Con Ed) | 4.3 | Highest rates — excellent savings per kWh |
| Albany / Capital Region | 4.2 | National Grid territory |
| Buffalo / Rochester | 3.9 | Lower sun, but low system prices |
| Syracuse | 3.9 | NYSEG/National Grid, snow load considerations |
Use NREL’s PVWatts Calculator for a production estimate at your specific address.
Stacking the Credits: Why New York Is Special in 2026
Most states relied heavily on the federal 30% ITC, which is now gone. New York is different because its biggest incentive is state-level and still active. Here’s the stack a typical buyer can combine:
- NY-Sun lowers the sticker price upfront (through the installer)
- 25% NY State Tax Credit returns up to $5,000 at tax time
- Net metering offsets your nighttime grid usage
- 15-year property tax exemption protects your home’s added value
- Sales tax exemption trims the purchase price
This combination is why New York remains a top-tier solar state even in the post-federal-ITC era.
Solar + Battery Storage in New York
Battery storage adds resilience and can increase self-consumption:
- NY-Sun has offered storage incentives through NYSERDA’s energy storage programs — check current availability
- Storage provides backup during winter storms and grid outages, increasingly common in parts of the state
- Federal ITC for batteries expired December 31, 2025 — no 30% federal credit in 2026
- Downstate time-of-use rates can make battery-shifted solar more valuable
Is Solar Worth It in New York Without the Federal ITC?
For most New York homeowners, yes — arguably more so than in many states, because the 25% state credit cushions the loss of the federal ITC. Solar is especially strong for:
- Con Edison and PSEG Long Island customers with high rates
- Homeowners with $150+/month bills
- Anyone who can use the full $5,000 state credit (sufficient state tax liability, or carry it forward up to 5 years)
- Towns that participate in the RPTL §487 property tax exemption
Where New York solar is harder to justify in 2026:
- Very low bills (<$80/month)
- Heavily shaded or north-facing roofs
- Localities that have opted out of the property tax exemption
- Low state tax liability with little ability to use the credit even over 5 years
How to Get an Accurate New York Solar Quote
Your actual savings depend on:
- Your utility and region — Con Ed, PSEG-LI, National Grid, and NYSEG differ on rates and NY-Sun blocks
- The current NY-Sun block — incentives decline over time, so timing matters
- Your state tax liability — needed to fully use the 25% credit (carries forward 5 years)
- Whether your locality participates in the §487 property tax exemption
Get quotes from 3+ NYSERDA-eligible installers and make sure each itemizes the NY-Sun incentive and the 25% state credit separately. New York prices vary 15–25%.
Start with a free estimate → Solar Calculator
Key Takeaways
- New York’s 25% state solar tax credit (up to $5,000) is still active — a major advantage now that the federal ITC has expired
- NY-Sun adds an upfront $/watt incentive that declines as blocks fill — installing sooner captures more
- Net metering and a 15-year property tax exemption (§487) round out one of the richest state stacks in the US
- High electricity rates (~$0.23/kWh) mean strong savings despite fewer sun hours
- Federal ITC expired December 31, 2025 — no 30% federal credit for 2026 installations
- Avg. payback: 6–9 years; 25-year savings: $38,000–$55,000
- Confirm your locality participates in the §487 property tax exemption (local opt-out is allowed)
Related Articles
- Solar Savings Calculator by State 2026: Texas, Michigan & New Jersey
- Has the Federal Solar Tax Credit Expired? 2026 ITC Status Update
- Best States for Solar Energy in 2026: Top 10 Ranked
- How Much Do Solar Panels Cost in 2026? State-by-State Guide
- Solar Savings Calculator
Sources: NY Tax Law §606(g-1) / Form IT-255, NYSERDA NY-Sun, NY Real Property Tax Law §487, NREL PVWatts, DSIRE New York Incentives, EIA New York Electricity Profile.