Solar Incentives in New York
Last updated: March 2026
Avg. sun hours/day
4.2 hrs
Avg. electricity rate
$0.22/kWh
Active incentives
4
Active Programs (4)
NY-Sun Incentive Program
Approximately $0.20 per watt (W) of installed capacity for residential systems, up to a maximum of $5,000. Actual per-watt incentive varies by utility territory and available program budget.
NY-Sun is administered by NYSERDA (New York State Energy Research and Development Authority) and is the state's primary solar incentive program. The per-watt incentive is paid directly to the installer and passed on to the customer as a reduction in system price. Incentive rates are set by utility territory (Con Edison, National Grid, NYSEG, RG&E, Central Hudson, O&R) and step down as more megawatts are installed in each territory. Check NYSERDA's website for the current incentive rate in your service territory. Commercial and nonprofit programs also exist with different rates.
New York State Solar Energy System Equipment Credit
25% of the total installed cost of a qualifying solar energy system, up to a maximum credit of $5,000.
New York's state solar tax credit (IT-255) is available to homeowners who purchase and install a qualified solar energy system at their primary residence. The credit is calculated as 25% of the system cost after any incentives (such as NY-Sun) are subtracted. The maximum credit is $5,000. If the credit exceeds the taxpayer's liability in a given year, the excess can be carried forward for up to five years. Battery storage systems that are charged exclusively by solar may also qualify. The credit is claimed on New York State Form IT-255.
NYSERDA Clean Energy Financing and Programs
NYSERDA's Green Jobs-Green NY program offers on-bill financing at below-market interest rates for energy efficiency and solar upgrades. Loans from $500 to $25,000 for residential customers at competitive rates.
NYSERDA administers multiple financing programs. The Green Jobs-Green NY program provides low-interest on-bill financing repaid through utility bills, making it accessible for customers without upfront capital. NYSERDA also coordinates the NY Clean Energy Fund, Community Distributed Generation (CDG) for community solar subscribers, and workforce development programs. Many programs are interconnected — a NYSERDA-registered installer can navigate the full suite of available incentives for a given installation.
Consolidated Edison Net Metering
Excess solar generation is credited at the full retail electricity rate. Con Edison customers in NYC and Westchester pay some of the highest rates in the nation (~$0.22–$0.30/kWh), making net metering credits particularly valuable.
Con Edison offers net metering under New York's Value of Distributed Energy Resources (VDER) tariff, also known as the 'Value Stack.' For most residential customers, this approximates retail-rate net metering, but the actual compensation rate is calculated based on time-of-use, locational value, environmental value, and capacity value. Interconnection for systems up to 25 kW uses a simplified process. Additional utilities in New York (National Grid, NYSEG, RG&E, Central Hudson) also offer net metering under VDER rules.
Expired / Historical Programs
Federal Residential Clean Energy Credit (ITC) — EXPIRED
This credit has expired for new residential solar installations. It was worth 30% of the total system cost with no cap.
The federal Residential Clean Energy Credit expired for new installations as of January 1, 2026. New York homeowners who installed solar on or before December 31, 2025 may still claim the 30% federal credit on their applicable tax return. New installations in 2026 are not eligible for the residential credit. The New York State 25% credit and NY-Sun rebate remain active and are the primary incentives available in 2026. Commercial entities may still claim the federal Commercial ITC at 30%.
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