Every incentive a New York homeowner can actually use, what each one is worth, and the ones that no longer exist. Sourced and dated.
New York’s Solar Energy System Equipment Credit is 25% of net system cost after the NYSERDA rebate, capped at $5,000, on Form IT-255, carrying forward up to five years.
What makes it unusual is that it applies to leased and third-party-owned systems, not only purchases. Most state credits require ownership. A homeowner on a qualifying PPA of ten years or more can claim it personally.
NYSERDA’s NY-Sun Megawatt Block pays a per-watt rebate directly to your installer, who must pass it through as a price reduction. Current rates run roughly $0.20 to $0.40 per watt, with adders of $0.40 to $0.80 for income-qualifying households.
The blocks decline as they fill, so the rate depends on when your application lands. New York also exempts solar from state sales tax and gives a 15-year property tax exemption.
Sources: NY Department of Taxation and Finance Form IT-255; NYSERDA NY-Sun MW Block dashboards.
The 30% federal Residential Clean Energy Credit under Section 25D ended for systems purchased after December 31, 2025. If you buy with cash or a loan in 2026, you cannot claim it. Any site still advertising a 30% federal credit for a homeowner purchase is running outdated information.
What remains is Section 48E, the commercial investment credit. It applies to third-party-owned systems — leases and power purchase agreements — where the system owner claims it rather than the homeowner. That is precisely what makes $0-down possible.
EnergyPros does not provide tax advice — confirm your situation with a tax professional.
Incentives only matter against the rate you are paying now. New York is moving from 1:1 net metering to the Value Stack (VDER), which prices exported power by when and where it is produced — typically 60 to 90 percent of the retail rate. New York also offers a 25% state tax credit capped at $5,000 that, unusually, applies to power purchase agreements of ten years or more.
See the full breakdown of every New York utility rate on our New York solar page.
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No, not on a purchase. The Residential Clean Energy Credit under Section 25D ended for systems purchased after December 31, 2025. Section 48E still applies to third-party-owned systems — leases and power purchase agreements — where the system owner claims it. That is what makes $0-down possible.
Yes. Any rebate paid to your installer should appear on your contract as a reduction in price, not as a savings claim. Ask for an itemised quote showing the gross price, each incentive applied, and the net. If an installer will not itemise, that is worth noticing.
It depends on the incentive. Rebates paid to the installer reduce your contract price either way. Tax credits and renewable energy certificates generally follow ownership — under a lease or PPA the system owner claims them, which is part of how the monthly payment is kept low. A few state credits are exceptions.
No. EnergyPros is a marketplace. We match you with vetted, licensed and insured contractors who work in your area, and you deal directly with them on the quote and the installation.
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