Rochester, NY

The New York Solar Equipment Tax Credit is a state tax incentive that helps homeowners save money when they invest in solar energy systems. This credit allows you to reduce your New York state income taxes by 25% of what you spend on qualifying solar equipment, up to a maximum credit of $5,000. You can claim this credit whether you purchase solar panels outright, lease them, or enter into a long-term power purchase agreement (at least 10 years) for solar energy generated by equipment you don’t own.

To qualify for this credit, the solar system must be installed at your primary residence in New York State and must be designed to produce energy for heating, cooling, hot water, or electricity for your home. The credit is non-refundable, meaning it can only reduce your tax liability to zero – you won’t receive a cash refund if the credit exceeds your taxes owed. However, if you can’t use the full credit in one year, you can carry the unused portion forward for up to five years, giving you flexibility to maximize the 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 portion of your property tax assessment that’s directly attributable to your solar installation.

To qualify, your solar system must be constructed between January 1, 1991 and January 1, 2030, or have existed before July 1, 1988. The system must include solar collectors, energy storage devices, and other equipment necessary for collecting and converting solar energy. However, this benefit isn’t automatic – each local taxing jurisdiction (county, city, town, village, and school district) can choose whether to offer this exemption through local laws or resolutions. You’ll need to check with your local tax authorities to confirm availability in your area.

Important considerations include that you’re still responsible for special assessments and ad valorem levies, and some jurisdictions may require you to enter into a payment-in-lieu-of-taxes (PILOT) agreement. If you’re planning a solar installation, you must notify local tax jurisdictions in writing when you sign your solar contract, referencing this specific tax law section. The exemption begins when your system becomes operational and continues for the full 15-year period, providing significant long-term property tax savings.

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 population centers like New York City, Albany County, Nassau County, Suffolk County, and Erie County. However, some jurisdictions still charge local sales tax rates 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 residential solar energy systems equipment and installation services, with no income requirements or application process needed. The tax exemption is automatically applied at the point of sale when you purchase qualifying solar equipment. There are no stated expiration dates for this program, making it a reliable long-term incentive. Homeowners should verify their specific local tax rate with their solar installer, as rates can change and some cities within exempt counties may have different rules than their surrounding county.

The NY-Sun Program is New York State’s comprehensive solar incentive initiative that provides direct financial rebates to homeowners who install solar panel systems. Administered by NYSERDA (New York State Energy Research and Development Authority), this program offers upfront cash incentives that reduce the initial cost of going solar, making clean energy more affordable for New York families.

The program operates through a regional block structure across three main areas: Con Edison territory (NYC and Westchester), Long Island, and Upstate New York. Each region has allocated megawatts (MW) of solar capacity eligible for incentives, and rebate amounts decrease as each block fills up – meaning earlier participants receive higher incentives. The specific dollar amounts vary by region and are updated in real-time through online dashboards, so homeowners should check current rates when considering solar installation.

All residential solar installations in New York are eligible for NY-Sun incentives, regardless of income level or home type. However, the program is designed to phase out incentives over time as the solar market becomes more self-sustaining, so availability depends on remaining capacity in each regional block. Homeowners should work with NY-Sun participating contractors to ensure their projects qualify and to access the most current incentive levels for their specific location.

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 then offset your future electricity bills 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 valuable program. You’ll pay a monthly Contribution Benefits Charge (CBC) that ranges from $0.85 to $1.45 per kW of your solar system’s capacity, depending on your utility provider. For example, PSEG Long Island charges the lowest fee at $0.85/kW-DC per month, while National Grid charges $1.45/kW-DC monthly. Your net metering credits roll over month to month and year to year for up to 20 years, giving you long-term value from your solar investment. However, you won’t receive cash payments for excess credits – they can only be used to offset future electric bills.