Syracuse, 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 be installed at your primary residence in New York State and used for heating, cooling, hot water, or electricity generation.

You can qualify for this credit in three ways: by purchasing solar equipment outright, entering into a lease agreement for solar equipment, or signing a power purchase agreement (PPA) that spans at least 10 years to buy electricity from solar panels you don’t own. While this credit isn’t refundable (meaning you won’t get cash back if the credit exceeds your tax liability), any unused portion can be carried forward for up to five years, giving you flexibility to use the full benefit over time. This makes solar more affordable by reducing your New York State income tax bill dollar-for-dollar.

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 difference between your home’s value with and without the solar system.

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 equipment like solar panels, inverters, batteries, and other components necessary for collecting and converting solar energy. There are no income requirements or property location restrictions. However, this exemption is subject to local option, meaning your county, city, town, village, or school district can choose to opt out of offering this benefit. You’ll need to check with your local tax assessor to confirm the exemption is available in your area.

Important considerations include that you’ll still be responsible for special assessments and ad valorem levies, and local 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 within 60 days of signing your solar contract or interconnection agreement to secure this benefit.

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 counties offer complete exemption (0% tax rate), including major areas like Albany, Erie, Nassau, Suffolk, Westchester, and New York City. However, some counties still charge local sales tax rates ranging from 1.5% to 4.5% on solar purchases. For a typical residential solar system costing $20,000-$30,000, this exemption can save homeowners between $800-$1,200 in state taxes alone, with additional local savings where applicable.

This exemption applies specifically to residential solar energy systems equipment and installation services. There are no income requirements, system size limits, or application deadlines – the exemption is automatically applied at the point of sale when you purchase qualifying solar equipment. The exemption remains in effect indefinitely, as no sunset date has been established. Homeowners should verify their specific local tax rate with their solar installer, as the exemption status can vary even between cities within the same county.

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, Long Island, and Upstate New York. Each region has allocated megawatts (MW) of solar capacity eligible for incentives, organized into blocks that decrease in value over time as solar becomes more cost-effective. While the source material doesn’t specify exact dollar amounts, incentives are available for residential, commercial, and large-scale solar projects until each region’s allocated capacity is fully subscribed.

The program is designed to phase out incentives gradually as the solar market becomes self-sustaining, so acting sooner rather than later ensures access to higher incentive levels. Homeowners should note that incentive amounts vary by region and decrease as each MW block fills up, making timing an important consideration. The program also includes special adders for community solar projects and initiatives focused on making solar accessible to all New Yorkers, regardless of income level.

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 earn credits that roll over month to month and year to year for up to 20 years, giving you long-term savings on your electricity bills. 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, depending on your utility company. For example, if you have a 10 kW solar system with National Grid, you’d pay about $14.50 per month in CBC fees.

Net metering is available to residential solar customers across New York through major utilities including Con Edison, National Grid, NYSEG, RGE, Central Hudson, Orange & Rockland, and PSEG Long Island. Your accumulated credits will expire after 20 years, and utilities don’t issue cash payments for excess credits – they remain as bill credits only. This program makes solar more financially attractive by ensuring you get full value for all the clean energy your system produces.