How solar works in New York in 2026
The federal tax credit changed
The 30% federal residential clean energy credit (Section 25D) ended for systems installed after December 31, 2025. If you buy a system outright or with a loan in 2026, you cannot claim it. With a lease or power purchase agreement the solar company owns the system and may still qualify for business credits, which can affect the price you are offered. Ask any provider how this applies to your quote.
NY-Sun incentives
NYSERDA's NY-Sun program offers incentives that participating installers apply to your price, so you see them as a lower upfront cost rather than a check. The amount depends on your region and on how much of the program's current block remains.
State tax credit
New York offers a credit of 25% of the cost of a system you buy, up to $5,000. If your New York income tax is less than the credit in the first year, the unused part can carry forward for up to five years. Ask a tax professional how it applies to you.
Net metering
Most residential systems earn net metering credits for power sent to the grid. Systems connected since 2022 also pay a small monthly customer benefit contribution charge, which any estimate you receive should include.
Community solar
New York has community solar projects in every region. You subscribe to a share of a local solar farm and receive credits on your electric bill. Community solar subscribers do not claim the state tax credit.
Tax exemptions
Solar equipment is exempt from New York State sales tax, and most localities exempt a solar system's added value from property tax for 15 years, though some towns opt out.
Utilities: Con Edison, National Grid, NYSEG, RG&E, Central Hudson, Orange & Rockland and PSEG Long Island.
Common questions
Do I still get a tax credit in New York in 2026?
The federal credit ended for systems installed after 2025, but New York's own credit of 25% of cost, up to $5,000, is still available for systems you buy.
Can renters in New York get solar?
Often, yes. Community solar lets renters and homeowners with unsuitable roofs subscribe to a local solar farm and receive bill credits.
Official sources
This guide is general information, not financial or tax advice. Program rules and rates change; confirm current terms with the program administrator or a tax professional.