New York is widely regarded as one of the most generous states in America for residential solar incentives. In 2026, the combination of NY-Sun rebates, the 25% New York State Solar Tax Credit, and the 30% Federal ITC reduces the net cost of solar by over half.
New York Solar Incentives: NY-Sun & 25% State Tax Credit (2026)
Dr. Aris Thorne
NABCEP Certified Solar Consultant
📅 Updated: 2026-08-20
⏱️ 6 min read
✓ Fact-Checked
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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 on top of the 30% Federal ITC.
- 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.
- Rapid 5 to 7 Year Payback: Combined federal + state incentives slash total installation costs by over 55%.
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
Frequently Asked Questions
Can I combine the NY 25% state solar credit with the 30% federal tax credit?
Yes! New York homeowners can legally claim both the 30% Federal ITC and the 25% NY state tax credit (up to $5,000) for massive combined savings.