🗽 New York Solar Policy

New York Solar Incentives: NY-Sun & 25% State Tax Credit (2026)

Solar Savings Hub
Solar Savings Hub Editorial Team
Reviewed against DOE, SEIA & IRS sources
📅 Updated: 2026-10-04 ⏱️ 6 min read
New York residential home with rooftop solar array benefiting from NY-Sun and state tax credits
New York residential home with rooftop solar array benefiting from NY-Sun and state tax credits
💡

Key Takeaways & Executive Summary

  • 25% State Tax Credit ($5,000 Max): New York provides a direct 25% state income tax credit up to $5,000 — now the headline incentive since the 30% federal credit ended December 31, 2025.
  • NY-Sun Megawatt Block Rebates: Upfront per-watt cash rebates deducted directly from your installer contract invoice.
  • NYC Property Tax Abatement: New York City homeowners can claim an additional 20% property tax abatement over 4 years.
  • Payback Around 8–12 Years: State and local incentives still cut costs substantially, but without the federal credit, typical payback stretches to roughly 8–12 years depending on utility rates.
State Tax Credit 25% ($5k) Direct NY Tax Deduction
NY-Sun Rebate 20-40¢/W Upfront Cash Off Invoice
Combined Savings 55%+ Federal + NY State
Avg Payback 5.6 Yrs ConEd / National Grid

The New York Solar Landscape: NY-Sun & Clean Energy Mandates

Under the Climate Leadership and Community Protection Act (CLCPA), New York State is legally committed to generating 70% of its electricity from renewable sources by 2030. To achieve this aggressive target, the New York State Energy Research and Development Authority (NYSERDA) operates one of the most generous solar incentive portfolios in the Northeast.

The NY-Sun Megawatt Block Incentive Explained

Administered through NYSERDA, the NY-Sun initiative provides direct upfront cash rebates paid directly to your state-approved solar contractor. The incentive operates on a "Megawatt Block" system across three geographic regions: Con Edison territory (NYC & Westchester), Long Island (PSEG), and Upstate New York (National Grid, NYSEG, RG&E, Central Hudson).

As adoption quotas in each block are filled, the rebate per watt gradually scales down. For residential systems in Con Edison territory, NY-Sun rebates typically range from $0.20 to $0.40 per watt, providing an immediate $1,500 to $3,000 cash discount off your installation contract.

New York State Solar Tax Credit ($5,000 Cap)

With the former federal 30% tax credit ended December 31, 2025, New York State incentives now carry more weight. New York offers a generous state tax credit under Tax Law Section 606(g1). Homeowners can claim 25% of their total solar installation costs up to a maximum credit of $5,000 against New York State personal income tax. If your tax liability in year one is less than the credit amount, the remaining balance rolls forward for up to 5 consecutive tax years.

NYC Solar Property Tax Abatement (PTA) for Five Boroughs Homeowners

If you own a residential property in the five boroughs of New York City (Manhattan, Brooklyn, Queens, Bronx, or Staten Island), you qualify for the New York City Solar Property Tax Abatement. This city program allows homeowners to abate 7.5% of their total solar installation cost from their NYC property taxes annually for four consecutive years, delivering a total municipal property tax savings of 30% (capped at $62,500 annually).

Financial Model: 7.5 kW Rooftop Solar System in New York City

Table 1: Stacking Federal, State & NYC Municipal Solar Incentives (7.5 kW System)
Incentive Layer Percentage / Basis Financial Value
Gross Installation Cost 7,500 Watts × $3.40 / Watt $25,500
NY-Sun Upfront Megawatt Block Rebate $0.20 / Watt instant contractor discount -$1,500
Federal Tax Credit (Ended Dec 2025) No credit for 2026 homeowner installs $0
New York State Tax Credit (25%) 25% capped at statutory max -$5,000
NYC Property Tax Abatement (PTA) 7.5% per year for 4 years (30% total) -$7,650
Net Total Cost After All Incentives Over 55% of installation covered by state/local incentives $11,350

New York remains one of the most generous states for residential solar. In 2026, NY-Sun rebates, the 25% New York State Solar Tax Credit, and the NYC property tax abatement carry the load the federal credit used to carry — cutting net costs by over half for eligible homeowners even after the 30% federal ITC ended.

Frequently Asked Questions

Can I still combine the NY 25% state credit with a federal tax credit?

Not anymore — the 30% federal credit ended December 31, 2025. The good news: the 25% NY state tax credit (up to $5,000) stands on its own and was never dependent on the federal credit.

Can I claim the NYC Property Tax Abatement if I already claimed the state tax credit?

Yes! New York City's 4-year Property Tax Abatement (PTA), New York State's $5,000 income tax credit, and the NY-Sun rebate are all 100% stackable in 2026. (The federal 30% credit, previously part of this stack, ended December 31, 2025.)

Does Con Edison offer 1:1 net metering for home solar in NYC?

Yes. Residential systems up to 25 kW qualify for full retail 1:1 net metering, with a nominal Customer Benefit Contribution (CBC) fee of approximately $0.90 to $1.30 per kW per month.