New York
New York Solar & Heat Pump Incentives 2026 — NY-Sun + State Solar Credit
New York offers a 25% state solar income-tax credit capped at $5,000. NY-Sun and NYS Clean Heat incentives can also apply, but their availability and amounts depend on region, utility, project type, and current program blocks.
3
Incentive categories
5
Program entries
22.8¢
Avg rate / kWh
8.3 yrs
Simple solar payback
$52,936
25-yr net solar savings
Moderate
Solar potential
Solar Incentives in New York
NY-Sun Incentive (NYSERDA)
Varies by region and current MW block
The project incentive is determined by the applicable region, sector, current block, and remaining allocation. The amount received by the contractor must be disclosed in the customer contract.
Eligibility: Qualifying grid-connected projects submitted through a participating NY-Sun contractor; confirm the live dashboard and project rules.
NY State Solar Tax Credit
25% of qualified cost, up to $5,000
Nonrefundable New York income-tax credit equal to 25% of qualified solar equipment expenditures, capped at $5,000. Unused credit may be carried forward for up to five years.
Eligibility: Eligible purchase, lease, or qualifying PPA for solar equipment used at a principal residence in New York; actual benefit depends on qualified expenditures and state tax liability.
Heat Pump Incentives in New York
NYS Clean Heat Incentives
Varies by utility, system, and project
Current incentives differ for partial-home, whole-home, geothermal, and water-heating projects and may be subject to utility-specific rules.
Eligibility: Eligible customers and equipment using a participating contractor; check the address-based program finder before budgeting the incentive.
Federal HEAR Framework (State Availability Varies)
Statutory household cap up to $14,000
Federal law sets measure and household caps, but consumers can use rebates only where the state or territory program is active and funded. A listed cap is not an available award.
Eligibility: Income, equipment, project, state-program, and funding rules apply; confirm availability with the administering state program before purchase.
EV Incentives in New York
Drive Clean Rebate (NYSERDA)
Up to $2,000
New York point-of-sale rebate for eligible new EVs and PHEVs. Federal consumer EV purchase credits ended September 30, 2025 and are not included for 2026 purchases.
Eligibility: New York residents purchasing or leasing an eligible new vehicle through a participating dealer; verify the current vehicle list and amount with NYSERDA.
Get Free Solar Quotes for Your Home
Open the external EnergySage marketplace to request and compare itemized solar proposals.
Your estimated 25-year savings: $52,936
We are not affiliated with EnergySage and receive no commission or referral fee. The button opens an external site; review its terms and privacy policy.
Solar Policy & Local Utilities in New York
Net Metering
Utility tariff determines NEM or VDER treatmentNew York's mass-market onsite solar framework includes Phase One net metering with a monthly Customer Benefit Contribution for applicable newer systems. The VDER Value Stack is the primary mechanism for community distributed generation and may be available as an alternative. Confirm the current utility tariff and project eligibility.
Source: New York Department of Public Service
Major Utilities
- Con Edison
- National Grid
- NYSEG
- PSEG Long Island
New York Solar Facts
- The NY-Sun program offers per-watt cash incentives that step down as installation milestones are met. (NYSERDA)
- New York offers a 25% state solar income-tax credit, capped at $5,000. (NY Tax Law §606)
Last verified: 2026-09. Always confirm current terms with your utility or at DSIRE.
Is Solar Worth It in New York?
Solar can provide long-term savings in New York, but the outcome depends on utility territory, export compensation, site production, and incentive eligibility. The worked 8 kW example below keeps simple and cash-flow payback separate.
Nationally, EnergySage reports the average homeowner saves about $61,000 over 25 years by going solar — though actual savings vary by state, electricity rate, and system size.
Key Advantage
New York's 25% state solar income-tax credit is capped at $5,000. A qualifying project may also receive a NY-Sun incentive, but the live amount depends on region, sector, current block, and remaining allocation.
Watch Out For
NYC area installs cost more due to permitting complexity and labor rates. Upstate homes with shade from trees may see 20–30% production reduction vs. sunny states.
Solar Cost & Savings in New York (8 kW System)
| Item | Amount |
|---|---|
| Gross install cost | $23,600 |
| NY State Solar Tax Credit | −$5,000 |
| Net install cost | $18,600 |
| Annual energy savings | $2,237 |
| Simple payback period | 8.3 years |
| 25-year net savings | $52,936 |
The federal residential solar tax credit (Section 25D) is not available for expenditures after Dec 31, 2025 and is not included above. State and utility incentives may still apply and are listed separately.
* Planning example for an 8 kW system: $2.95/W installed, 4.2 peak sun hrs/day, one 20% system derate, 0.5%/yr panel degradation from year two, and 22.8¢/kWh escalating 2.5%/yr. It assumes all production offsets electricity at the retail rate; actual self-consumption and export credits vary by utility tariff. Tax credits require eligibility and sufficient tax liability.
Get Free Solar Quotes for Your Home
Open the external EnergySage marketplace to request and compare itemized solar proposals.
Your estimated 25-year savings: $52,936
We are not affiliated with EnergySage and receive no commission or referral fee. The button opens an external site; review its terms and privacy policy.
How to Go Solar in New York: Step-by-Step
- 1
Check NYSERDA's NY-Sun incentive availability
Use NYSERDA's live MW Block dashboard and a participating contractor to confirm the current incentive for the project's region and sector. Availability changes as blocks are subscribed.
- 2
Calculate only confirmed incentives
Start with the New York state credit rules (25% of qualified expenditures, maximum $5,000), then use the NY-Sun amount disclosed in the contractor proposal. Do not add the federal residential 25D credit for a system placed in service after December 31, 2025.
- 3
Get quotes from NYSERDA-approved installers
Only NYSERDA-approved contractors qualify for NY-Sun rebates. Search at nyserda.ny.gov. Minimum 3 quotes.
- 4
File state tax credit
NY State: File Form IT-255 with your state tax return. Credits can be carried forward if they exceed your tax liability in year 1. If you installed in 2025, also file IRS Form 5695 for the federal credit.
Frequently Asked Questions — Solar & Clean Energy in New York
Is solar worth it in New York in 2026?
It depends on your roof, electricity use, utility tariff, export value, quote, and tax-credit eligibility. In the page's 8 kW worked example, $23,600 gross cost less one modeled $5,000 New York credit gives $18,600 net cost. About $2,237 of first-year savings gives an 8.3-year simple payback.
What solar incentives are available in New York?
The New York solar equipment income-tax credit equals 25% of qualified expenditures, up to $5,000, subject to eligibility and tax liability. NY-Sun may also reduce project cost, but its live amount depends on the project region, sector, current MW block, and remaining allocation. The federal residential 25D credit is not available for systems placed in service after December 31, 2025.
How much does solar cost in New York in 2026?
This planning example uses $2.95/W — $23,600 for an 8 kW system. It models only the New York state income-tax credit at its $5,000 cap, producing $18,600 net cost if the household qualifies and can use the credit. NY-Sun is listed but not deducted because the available amount depends on utility territory, project details, and program availability.
Does solar work in New York winters?
Solar can produce electricity in winter, but short days, cloud cover, roof orientation, shading, and snow cover affect site output. The 4.2 peak-sun-hour input on this page is an annual planning average, not a promise for any month or address; use a site-specific production proposal or PVWatts estimate.
Does New York have net metering in 2026?
New York net metering status: Utility tariff determines NEM or VDER treatment. New York's mass-market onsite solar framework includes Phase One net metering with a monthly Customer Benefit Contribution for applicable newer systems. The VDER Value Stack is the primary mechanism for community distributed generation and may be available as an alternative. Confirm the current utility tariff and project eligibility. (Source: New York Department of Public Service.)
Which utilities in New York offer solar programs?
The main electric utilities in New York are Con Edison, National Grid, NYSEG, PSEG Long Island. Confirm current offers with your utility and check DSIRE.org for New York programs.
Recommended Products for New York
Product examples are provided for comparison only. Confirm electrical compatibility, installer requirements, warranty terms, and any current utility incentive before purchase.
Calculate Your New York Savings
The Solar ROI link preselects New York's planning inputs, including the listed electricity rate (22.8¢/kWh). Other tools open with their own defaults; review every input before calculating.
Browse Other States
Data Sources & Methodology
Incentive data: DSIRE, U.S. DOE Home Energy Rebates, IRS residential credit guidance, and linked state program pages. Electricity rates: EIA Electric Power Monthly, Table 5.6.A (February 2026). Solar resource: NREL PVWatts reference with state-level planning inputs, not an address-specific API result. Installation cost and 2.5% annual rate change are editable-model assumptions, not quotes or forecasts. Sources and methodology reviewed 2026-09-06. Always verify current amounts with the administering agency and utility.