New York solar incentives 2026: what’s left

The federal 30% credit is gone for homeowners. New York’s own incentives are still here, and together they still cut a typical system’s price by thousands.

Short answer: a New York homeowner who buys solar in 2026 can still get a state income tax credit of up to $5,000, pay no state sales tax on the system, and usually avoid a property tax increase for 15 years. Battery rebates are available in most of the state. What’s gone is the federal 30% credit, and in Central Hudson territory the standard NY-Sun per-watt rebate.

What ended

The federal Residential Clean Energy Credit (Section 25D) does not apply to systems placed in service after December 31, 2025. If a salesperson quotes you “30% back from the IRS” on a system you’d own, ask them to show you the law. We covered what replaced it in the homeowner solar tax credit is gone.

What New York still offers

Incentive	Amount	Notes
State solar equipment credit	25% of cost, up to $5,000	Form IT-255; not refundable; unused credit carries forward 5 years
State sales tax exemption	4% state share	Residential solar equipment and installation; some counties also waive the local share
Property tax exemption (RPTL 487)	Added value not assessed for 15 years	Towns, counties and school districts can opt out, so check yours
NY-Sun Affordable Solar	$0.80 per watt	Households at or below 80% of area median income
Residential battery incentive	Launched at $200/kWh, up to $5,000 per site outside Con Ed	Systems 25 kWh or smaller; NYSERDA participating contractor; rates step down by block

The state credit, in practice

The credit is 25% of qualified solar equipment spending, capped at $5,000, for a system at your main home in New York. On a $24,000 system you hit the cap. Because it isn’t refundable, it can only reduce tax you actually owe. If your New York tax is $2,000 a year, you’d use $2,000 this year and carry the rest forward, up to five years. Leases and power purchase agreements of at least ten years can also qualify, but on a lease the savings usually go to the leasing company’s pricing, not to you.

NY-Sun: check your utility

NY-Sun pays its standard residential rebate in blocks by region. NYSERDA’s Upstate dashboard lists Residential Block 14 for the NYSEG, RG&E and National Grid territories only. That means Central Hudson customers, most of Ulster and Dutchess, don’t get the standard per-watt rebate. Parts of eastern Dutchess are served by NYSEG and may still qualify. Check the dashboard for current status before you count on it.

The income-based Affordable Solar incentive is separate: $0.80 per watt for qualifying households. On an 8 kW system that’s $6,400.

Battery rebates

NYSERDA’s residential storage program covers new, permanent batteries of 25 kWh or less, installed by a participating contractor. Long Island has its own program through PSEG Long Island. When the program opened in June 2025, the rate outside Con Edison territory was $200 per kWh, capped at $5,000 per site, and it steps down as each block fills. A battery can qualify with or without solar. Check NYSERDA’s dashboard for the current block.

One thing to confirm: New York’s sales tax exemption for home batteries was set to expire June 1, 2026, and a proposal to extend it to 2028 was in the state budget. Ask your installer whether sales tax applies to your battery.

Net metering in Central Hudson territory

Central Hudson still offers one-for-one net metering for residential systems. Systems installed since January 1, 2022 pay a monthly Customer Benefit Contribution, roughly $25 to $120 a year depending on size and utility. Central Hudson’s delivery rate rose about 5% on July 1, 2026, with more increases scheduled through mid-2028. Higher rates make each solar kilowatt-hour worth more.

Worked example: 8 kW in Dutchess County

At $3.00 per watt installed, an 8 kW system costs $24,000 before incentives.

State credit: −$5,000 (over one or more tax years)
Sales tax: $0 instead of about $1,950 at Dutchess County’s combined 8.125% rate
Property tax: no added assessment if your jurisdiction hasn’t opted out

Net cost: about $19,000, without NY-Sun. Doing part of the work yourself lowers it further. Our install guides show which jobs a homeowner can do and which need a licensed electrician.

Before you signAsk the installer to list every incentive in the quote, which program it comes from, and who receives it, you or them. A credit you can’t use is not a discount.

Quick answers

Is there still a solar tax credit in New York in 2026?

Yes. New York’s solar energy system equipment credit is 25% of qualified costs, up to $5,000, claimed on Form IT-255. The federal 30% homeowner credit ended for systems placed in service after December 31, 2025.

Can Central Hudson customers get the NY-Sun rebate?

NYSERDA’s Upstate dashboard lists Residential Block 14 for NYSEG, RG&E and National Grid territories only, so Central Hudson customers generally don’t get the standard per-watt rebate. The income-based $0.80 per watt incentive is separate.

Do I pay sales tax on solar panels in New York?

No state sales tax applies to residential solar equipment and installation, and some counties also waive their local share.

Will solar raise my property taxes in New York?

Under RPTL 487 the added value is exempt for 15 years, unless your town, county or school district has opted out.

New York solar incentives in 2026, after the federal credit ended