New York Solar Panels

The New York State Solar Energy System Equipment Credit (SESEC) allows homeowners to claim a state income tax credit equal to 25% of the cost of their solar energy system, up to a maximum credit of $5,000. This credit directly reduces the amount of state income tax you owe — dollar for dollar — making it one of the most valuable solar incentives available to New Yorkers in 2026.

One of the standout features of this credit is its broad eligibility: it applies whether you purchase your solar system outright or enter into a qualifying solar lease or power purchase agreement (PPA) lasting at least 10 years. If you lease, the credit equals 25% of the lease payments made during the year. The credit applies to systems installed at your primary New York State residence.

If your state tax liability is less than the full credit amount in the year of installation, you can carry forward any unused portion for up to five additional tax years. To claim the credit, file Form IT-255 with your New York State tax return. Be sure to work with a NYSERDA-approved installer and keep all documentation of your system costs.

The NY-Sun Megawatt Block (MW Block) Program is New York’s primary solar rebate, administered by the New York State Energy Research and Development Authority (NYSERDA). Rebates are applied directly by your installer at the point of sale — you never pay the full price and wait for reimbursement. As of January 2026, standard residential rates are approximately $0.40/watt in the Con Edison territory and $0.20/watt in Upstate regions. For a typical 7 kW system, this translates to roughly $1,400–$2,800 in savings for standard-income households.

The program uses a declining block structure: as each funding block fills up, the rebate rate for the next block decreases. This incentivizes early action. Note that as of December 17, 2025, the standard Upstate residential incentive block has closed, meaning standard-income Upstate customers may no longer be eligible. The Con Edison territory and low-income tiers continue to have funding available. The Long Island (PSEG) standard residential block closed in April 2016, though low-income rates of $0.40/watt remain available there.

To access this rebate, you must work with a NY-Sun approved contractor, who will handle the application and paperwork on your behalf. You can check current block availability and rates on the NYSERDA contractor dashboard. Acting quickly is strongly advised, as remaining blocks are filling rapidly.

The Affordable Solar Residential Incentive is a higher-value rebate tier within the NY-Sun Megawatt Block Program, specifically designed for lower-income New Yorkers. Qualifying households receive $0.80 per watt of installed solar capacity — equivalent to $800 per kilowatt — which is significantly higher than the standard rebate rate. For a typical 7 kW system, this amounts to $5,600 in upfront savings, applied directly by your installer to reduce your project cost.

Eligibility is based on household income at or below 80% of the area median income (AMI) for your county. As a reference point, for a family of four in Upstate New York, that threshold is approximately $64,000 per year as of 2026. NYSERDA publishes county-specific income thresholds, and eligibility is not dependent on your tax liability — making this program accessible even to households with little or no state income tax owed.

Unlike the standard MW Block rebate, the low-income tier remains available in Upstate regions, the Con Edison territory, and Long Island (PSEG at $0.40/watt). Applications must be submitted through a NYSERDA-approved NY-Sun contractor, who will verify your income eligibility and handle all paperwork. This incentive can be stacked with the New York State tax credit and property tax exemptions for maximum savings.

Installing solar panels can increase your home’s market value, but New York State’s Real Property Tax Law (RPTL) Section 487 ensures that this added value does not result in higher property taxes. Under this Clean Energy Systems Exemption, the increase in your home’s assessed value attributable to a qualifying solar installation is fully exempt from property taxation for a period of 15 years from the date of installation. This means your property taxes remain the same as if you had never installed solar.

The exemption applies to residential, commercial, institutional, and industrial properties and covers solar, wind, and energy storage systems, among other eligible technologies. To take advantage of this exemption, you must file an application with your local property tax assessor. The process is straightforward, and many NY-Sun approved installers can guide you through it.

Important caveat: participation is not mandatory for local governments, and some municipalities have opted out of this exemption. Before relying on this benefit, confirm with your local assessor’s office that your municipality participates. New York City residents are not covered by this statewide exemption but may be eligible for the NYC SEGS Tax Abatement instead.

The NYC Solar Electric Generating Systems (SEGS) Tax Abatement is an exclusive incentive for New York City property owners who install qualifying grid-connected solar energy systems. The abatement equals 7.5% of the eligible installed system cost per year for four consecutive years, totaling a 30% reduction in installation costs recovered through reduced property tax bills. The annual benefit is capped at $62,500 per year (or $250,000 total over four years), and it may not exceed your actual property tax liability in any given year.

To be eligible, your solar system must be placed into service between January 1, 2024 and January 1, 2035. The abatement is calculated on the net cost of the system after any NYSERDA NY-Sun rebates have been applied. Importantly, you must hire a New York State registered architect or professional engineer to file the required paperwork with the NYC Department of Buildings — this is a mandatory step that your solar installer can help coordinate.

The SEGS abatement can be combined with the New York State Solar Energy System Equipment Credit (SESEC) and the state sales tax exemption, making it a powerful component of a stacked incentive strategy for NYC homeowners. Battery storage systems installed alongside solar may also qualify for a separate NYC property tax abatement of up to $250,000 total, subject to UL 9540A compliance requirements.

New York State exempts residential solar energy system equipment — including solar panels, inverters, racking, and associated components — from the state’s 4% sales and use tax. Installation labor costs are also exempt. This exemption applies whether you purchase your system outright or finance it, and it covers systems owned by the homeowner as well as those under power purchase agreements (PPAs).

In addition to the statewide exemption, many New York counties and New York City also waive their local sales taxes on qualifying solar equipment, which can add another 4–5% in savings depending on your location. The combined state and local sales tax exemption can represent hundreds to over a thousand dollars in savings on a typical residential solar installation.

The exemption is typically applied automatically at the point of sale by your solar installer, so you do not need to file a separate application. However, it is a good idea to confirm with your installer that the exemption is being applied correctly on your contract and invoice. This incentive can be stacked with the NY-Sun rebate, the state tax credit, and property tax exemptions for maximum overall savings.

New York’s net metering program allows residential solar customers to send excess electricity generated by their solar panels back to the grid in exchange for bill credits. Under Phase One Net Metering (NEM), credits are valued at the full retail electricity rate — meaning if your utility charges $0.24 per kWh, your exported solar energy is also credited at $0.24 per kWh. Residential systems up to 25 kW (National Grid) or 50 kW (Con Edison) are eligible. Customers who enroll in net metering in 2026 lock in this rate for a full 20 years, providing long-term billing certainty. A monthly Customer Benefits Contribution (CBC) charge applies to NEM participants.

As an alternative, customers may choose the Value of Distributed Energy Resources (VDER) tariff, also known as the Value Stack. Instead of a flat retail credit, VDER compensates solar owners based on five components: locational-based marginal pricing (LBMP), capacity value (ICAP), environmental value (E), demand reduction value (DRV), and locational system relief value (LSRV). VDER participants pay a lower CBC charge than NEM participants, but the overall value of credits may be higher or lower depending on your location and usage patterns.

New York is actively transitioning from net metering to VDER as the long-term billing framework, but as of 2026, residential customers can still choose Phase One NEM. It is strongly recommended to consult with your NY-Sun approved installer to model both options for your specific utility territory and usage profile before making a selection, as the choice has long-term financial implications.

NYSERDA’s Residential Energy Storage Incentive Program provides upfront rebates for homeowners who install new grid-connected battery storage systems through NYSERDA-approved contractors. Rebates are calculated based on the battery’s usable capacity in kilowatt-hours (kWh) and can reach over $6,000 per household depending on system size and utility territory. The program is available on a first-come, first-served basis and operates under a declining block structure — meaning rebate rates decrease as funding blocks fill up, so acting sooner locks in higher incentives.

Current rebate rates as of 2026 are $200 per kWh for customers of Upstate utilities including Central Hudson, National Grid, Orange & Rockland (O&R), and NYSEG, capped at $5,000. Con Edison customers (NYC and Westchester) receive $250 per kWh. As an example, a 13.5 kWh Tesla Powerwall would receive a $2,700 rebate Upstate or $3,375 in the Con Edison territory. Battery systems are eligible for up to 25 kWh of incentivized capacity.

To qualify, you must use a NYSERDA-approved installer, and your system must comply with UL 9540A testing standards and meet all local permitting requirements. The battery can be installed paired with a new or existing solar system, or as a standalone system. This rebate can be combined with the NYC SEGS Tax Abatement (for NYC residents) and other applicable state incentives for maximum savings.

The PSEG Long Island Battery Storage Rewards Program is available exclusively to customers in the Long Island Power Authority (LIPA) service territory, which covers Nassau and Suffolk counties. The program provides a rebate of $250 per kWh of installed usable battery storage capacity. For a typical 13.5 kWh battery such as a Tesla Powerwall, this equals a $3,375 rebate applied upfront to reduce your installation cost.

In exchange for the rebate, participating customers agree to allow PSEG Long Island to dispatch their stored energy back to the grid during designated peak-demand events. This demand response participation helps relieve stress on the local grid during high-usage periods, particularly in summer months. The program is designed to work seamlessly with your home battery system, and participation requirements are generally minimal for most homeowners.

Applications for this program are submitted through the NY-Sun platform, and you must work with a NYSERDA-approved installer. This rebate can be stacked with the New York State Solar Energy System Equipment Credit and the state sales tax exemption if your battery is installed alongside a qualifying solar system. Contact PSEG Long Island or your NY-Sun approved installer for current availability and enrollment details.

The Statewide Solar for All (S-SFA) program, approved by the New York Public Service Commission in 2024, is designed to bring the financial benefits of solar energy to low-income New Yorkers who may not be able to install rooftop solar. Eligible households — those at or below 60% of the state median income — can receive energy bill discounts of up to $180 per year at no cost to them. Participation does not require owning a home or installing any equipment.

The program works by having community solar and distributed solar facilities elect to participate in S-SFA. These facilities sell their electricity to the local utility at a rate based on the VDER value stack plus a special Solar for All incentive adder. A portion of that value is then passed on as bill credits to enrolled low-income participants. Compensation rates for participating projects are based on the 2025 rates specified in NYSERDA’s Compensation Level Schedules filed with the Department of Public Service.

Eligible households enroll directly through their interconnecting utility. Each utility’s website provides specific enrollment instructions and required documentation. This program is separate from — and can complement — other low-income solar incentives such as the Affordable Solar Residential Incentive for those who do own their homes and wish to install rooftop solar.