Solar in New York

Solar panels in New York: cost, incentives, and quotes

A typical residential solar system in New York costs $17,000-$23,000 installed in 2026. New York offers a 25% state tax credit (capped at $5,000), the NY-Sun rebate program, and VDER (Value of Distributed Energy Resources) net metering. The 30% federal Section 25D credit ended December 31, 2025. With high electricity rates (~$0.22/kWh) and strong state programs, typical payback runs 7-11 years.

$17K–$23K
Avg. system cost
25% (cap $5,000)
State tax credit
~$0.22/kWh
Retail rate
7–11 years
Typical payback

Solar incentives in New York

Federal context

Federal credit status (post-OBBBA, 2026 forward)

The 30% federal residential solar tax credit (Section 25D) ended December 31, 2025 under the One Big Beautiful Bill Act (Public Law 119-21). For solar systems placed in service after that date, customer-owned installations (cash or loan) receive no federal credit. The commercial Section 48E credit remains available through 2027-2030 deadlines for third-party-owned systems (leases and PPAs); the installer typically passes some benefit through as lower monthly payments. Consult a qualified tax advisor about how the current rules apply to your specific situation.

State tax credit

New York Solar Energy System Equipment Credit

New York offers a 25% state income tax credit on residential solar costs, capped at $5,000 per home. The credit is claimed on Form IT-255 and any unused portion can be carried forward for up to five tax years. Consult a qualified tax advisor about how the credit applies to your situation.

State production rebate

NY-Sun Megawatt Block Incentive Program

NY-Sun, administered by NYSERDA, provides a per-watt rebate that declines as installed capacity in each region fills its allocated megawatt block. The rebate amount depends on your utility territory and current block status. Your installer typically handles the application.

Utility billing policy

Value of Distributed Energy Resources (VDER) net metering

New York uses VDER (Value Stack) tariff rather than traditional 1:1 retail net metering. Exports are credited based on a multi-component calculation including energy value, capacity value, environmental value, and demand reduction. The total compensation varies by location, time of day, and season but is generally lower than retail rate.

Property tax benefit

New York property tax exemption

New York offers a 15-year residential solar property tax exemption under Real Property Tax Law Section 487, though local municipalities may opt out. Verify exemption status with your local assessor before installing.

Incentive details change. Verify current rules with your installer or a qualified tax advisor before making financial decisions.

Frequently asked questions about solar in New York

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Solar Savings Compare is a comparison marketplace, not a solar installer. Cost estimates are averages and vary by system size, roof type, usage, and local installer pricing.