Poughkeepsie, NY

The New York Solar Equipment Tax Credit is a state tax incentive that helps homeowners reduce the cost of going solar. This credit allows you to claim 25% of your qualified solar energy system equipment costs, up to a maximum credit of $5,000. The solar system must use solar radiation to produce energy for heating, cooling, hot water, or electricity for your home.

To qualify for this credit, you must purchase solar equipment, enter into a lease agreement for solar equipment, or sign a power purchase agreement of at least 10 years for solar-generated electricity. The solar system must be installed at your primary residence in New York State. While this credit is not refundable (meaning you won’t get cash back if the credit exceeds your tax liability), any unused credit amount can be carried forward for up to five years, giving you flexibility to use the full benefit over time.

New York’s Property Tax Exemption for solar energy systems allows homeowners to avoid paying property taxes on the increased value that solar panels add to their home. When you install a solar system, your home’s assessed value typically increases, but this exemption protects you from paying higher property taxes on that added value for 15 years. The exemption applies to the increase in assessed value only – you’ll still pay property taxes on your home’s original value.

To qualify, your solar system must be constructed between January 1, 1991 and January 1, 2030, with construction considered to begin when you sign a contract or interconnection agreement with your utility company. The exemption is subject to local option, meaning your county, city, town, village, or school district can choose whether to allow it – so you’ll need to check if your local government has opted in. While you’re exempt from regular property taxes on the solar value increase, you may still be responsible for special assessments and ad valorem levies. Some local governments may also require you to enter into a payment-in-lieu-of-taxes (PILOT) agreement, though they must notify you within 60 days of your written notice to them about your solar project.

New York’s Sales Tax Exemption for residential solar energy systems helps homeowners save money by eliminating sales tax on solar equipment purchases and installation. This state-level incentive has been available since 2005 and removes the standard 4% New York State sales tax, plus the additional 3/8% tax that applies in the Metropolitan Commuter Transportation District (which includes New York City and surrounding counties).

The financial benefit varies significantly depending on your location within New York. All residential solar installations are exempt from the 4% state sales tax, but local sales tax exemptions depend on whether your county or city has chosen to participate in the program. Many areas offer complete tax exemption (0% total tax), including major counties like Nassau, Suffolk, Erie, and all of New York City. However, some jurisdictions still charge local sales tax ranging from 1.5% to 4.5%. For example, a $20,000 solar system in an area with full exemption could save you $800-900 in taxes, while areas with partial exemption might save $400-500.

This exemption applies to any residential solar energy system equipment and installation, with no income requirements or system size restrictions. There are no application deadlines or expiration dates – the exemption is available for all qualifying purchases. Homeowners should verify their specific local tax rate before purchasing, as the exemption status can vary even within the same county depending on the city. The tax savings are automatically applied at the point of sale when working with qualified solar installers who are familiar with New York’s tax exemption requirements.

The NY-Sun Program is New York State’s comprehensive solar incentive initiative that provides financial support to make solar installations more affordable for homeowners, businesses, and communities across the state. Administered by NYSERDA (New York State Energy Research and Development Authority) in partnership with local utilities, this program offers direct cash incentives to reduce the upfront cost of installing solar panels on your property.

The program uses a regional approach with three main areas: Con Edison territory (NYC area), Long Island, and Upstate New York. Each region has allocated megawatt (MW) blocks with specific incentive amounts that decrease over time as solar becomes more cost-effective. The exact incentive amount varies by region and is updated in real-time through online dashboards, but homeowners can expect meaningful financial support that reduces their solar installation costs. Incentives are available on a first-come, first-served basis until each MW block is fully subscribed.

To participate, you must work with a NY-Sun participating contractor and meet standard solar installation requirements for your property. The program is designed to phase out incentives gradually as the solar market matures, so acting sooner rather than later ensures access to higher incentive levels. Homeowners should check the current incentive rates for their specific region through the program’s online dashboards, as these rates update frequently based on program participation levels.

Net metering in New York allows homeowners with solar panels to receive credit for excess electricity they generate and send back to the power grid. When your solar system produces more energy than your home uses, that extra power flows to the grid and you receive a 1:1 credit – meaning you get full retail value for every kilowatt-hour you export. These credits can then be used to offset your electricity costs during times when your solar panels aren’t producing enough power, like at night or during cloudy days.

The financial benefit varies by utility company, but all major New York utilities offer this 1:1 credit system. However, there is a monthly fee called the Contribution Benefits Charge (CBC) that ranges from $0.85 to $1.45 per kilowatt of your solar system’s capacity. For example, if you have a 10 kW solar system with National Grid, you’d pay about $14.50 per month in CBC fees. Your net metering credits roll over month to month and year to year for up to 20 years, giving you long-term flexibility to use the energy you’ve generated. The utility will not issue cash payments for excess credits – they can only be used to offset future electricity bills.