New York State Solar Incentives & Tax Credit
When choosing a contractor for installing solar, assessing what incentives and tax credits are available to you is important. You should work closely with your selected contractor to help you get these incentives applied to your cost. We’ve outlined the 2026 New York State solar incentives and tax credits below.
Federal Tax Credit
As you may already know, the federal tax credit is gone for residential homeowners. However, it does still exist for commercial businesses. Solar Liberty offers a prepaid lease program so that we can take advantage of the tax credit.
How it works:
- The program is designed to be able to get the credit and pass ownership to you as quickly as possible.
- The leasing company will pass the credit along to you, reducing your cost.
- After 5 years, they will offer to transfer ownership to you if you want. Otherwise, you can let them keep the ownership for the entire 25-year lease. The solar will still work the same for you and your home as if you purchased it, so nothing changes on that end.
This is the best way to take advantage of the incentive, but not handcuff you to a long-term lease. The commercial credit is available through December 2027.
NYSERDA Programs
1. New York State Solar Energy System Equipment Credit
Solar Energy System Equipment Credit is 25% of your qualified solar energy system equipment capped at $5,000.
The system must be installed at your main residence in New York State.
You are eligible if you have done the following:
- purchased solar energy system equipment
- entered into a written agreement for the lease of solar energy system equipment
- or entered into a written agreement that spans at least ten years for the purchase of power generated by solar energy system equipment not owned by you
2. New York State Real Property Tax Exemption
Installing solar can increase the property value of your home. You can apply to have that increased value taken off your property taxes because of installing solar. For more information and forms, visit NYSERDA.
3. Solar Battery Incentive
Another one of the 2026 New York State solar incentives is for solar batteries. NYSERDA offers a Residential Energy Storage Program for the install of home battery systems through approved contractors. The structure of these incentives are on a fixed rate based on the storage systems capacity. Solar Liberty is a qualified contractor and will inspect your location to determine the best system size, placement, and battery technology for your home. As a NYSERDA-approved contractor, we submit all necessary paperwork on your behalf and determine if your site qualifies. Interested in learning more? Visit our battery installation blog.
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Solar Liberty has been New York State’s number one solar installer for 23 years. Our NABCEP-certified solar installers and electricians get the job done right.
Discover just how easy and affordable it is to shrink your carbon footprint and energy bills by going solar. Request an appointment with Solar Liberty.
FAQs
Are solar panels worth it in NY?
Going solar is a smart investment for most New York homeowners. Installing panels can lower your electric bill, reduce your carbon footprint, and increase your property value. Solar panel systems usually pay for themselves over time as savings on electric bills accumulate.
Are there ways to get free solar panels in NY?
You cannot get free solar panels in NY, however, NY’s statewide solar for all program helps low-income households save money on electric. The program connects eligible customers with clean energy from local community solar installations.
How much time will it take for solar to pay itself in NY?
In NY solar pays for itself after 7-9 years depending on system size and location. Homeowners in NY should see an average of $50,000 in savings over 25 years, based on current electric costs. As utility rates continue to rise you may see more in savings over time.
How does the NYSERDA program support solar energy adoption?
NY state offers a 25% tax credit for solar installed at your personal residence.
How does net metering work in New York for solar power?
When solar panels are installed on your home, energy produced first gets used by your home. If your solar array makes more electricity than your home needs at that time, it gets sent to the grid. This causes your meter to run in reverse. When you pull power from the grid due to unfavorable weather conditions, the meter runs forward like normal. When excess production gets sent to the gird, you receive a kilowatt-hour credit on your electric bill to offset future kWh used from the grid.
How can I participate in community solar programs in NY?
Homeowners and renters can access the benefit of solar power without installing panels on the property. You can find a community solar program through NYSERDA’s Community Solar Map. You can contact as many providers as you want to determine what subscription program is right for your home.
