Solar incentives in New York: Make solar switch easy

Updated: Mar 13, 2025
8 min

Julia ZaraevaAuthor

A PV system in New York is a great investment. The state is cloudy but high electric bills make your solar panel system pay for itself several times during its lifespan. To make the switch to renewable energy easier, take advantage of New York solar incentives and rebates.

Key takeaways

High electric bills make a solar project a great investment in NY for many customers. And multiple rebates, state solar tax exemptions and other financial resources can greatly reduce the initial costs and make it even more profitable.
New York residents can claim a 30% federal tax credit on the total cost of their solar system installation. The uncovered amount rolls over the next year.
Net metering allows homeowners to sell excess solar energy back to the grid for credits.
Credits are valued at the utility's retail rate per kWh. Unused credits roll over monthly and accumulate in a "credit bank."
The added value of a solar PV system is exempt from property taxes. Property value increases by approximately 4%. An application for a solar system tax exemption is required.
NY-Sun offers financing for homeowners with incomes below 80% of the state's median income, and small commercial and non-profit organizations. Loan amounts range from $1,500 to $25,000, with payback terms of 5, 10, or 15 years.
Solar easements protect solar systems from shading. Voluntary agreements between property owners. Must be a written and legal contract.

Save 30% of your PV system cost with Federal Solar Tax Credit

The US government wants more people to go solar: it’s a modern and green way of getting energy. This is why the Solar Investment Tax Credit (ITC) program was developed. It allows American citizens to claim 30% of the cost of their installation as an income tax deduction. The cost here is not only solar panels, but also shipping, installation expenses and more. For example, if your system overall made you spend $10,000, the government returns you $3,000. To claim the ITC, complete all the necessary forms and submit them when filing your taxes.

Sell excess electricity with net metering program

The net metering policy in New York has made it easier for utility customers to sell excess solar power instead of storing energy in batteries. Your PV system will start to pay for itself primarily through the net metering program by selling solar energy that you haven’t used into the commercial grid and gaining credits from your utility company for it.

The credit value in New York is equal to your utility retail rate per kWh. Any unused credits will roll over to the next month and begin to accumulate in your “credit bank”. You can draw energy from there when your solar system generates less electricity than needed to zero out your bills.

New York city and state solar sales tax exemption makes solar equipment cheaper

Many components are exempt from your sales tax under NY residential sales tax exemption for solar electric generating systems. According to the law, you don’t have to pay sales tax on energy system equipment directly involved in the production of electricity, for example, PV modules, clean energy storage systems, and inverters.

Raise your property value but not your taxes

New York PV System owners can avoid paying additional property taxes on the added value their solar system brings to their home by applying for a solar system tax exemption. This certificate will ensure any new PV system installed and its equipment will not be part of your property tax. Additionally, any such home improvement will definitely make it about 4% more valuable on the property market, says the Zillow report.

this is how much solar panels increase the value of your house

Finance your solar system through NY-Sun

NY-Sun offers a financing program known as Affordable Solar for loans anywhere from $1,500 to $25,000. The payback terms are 5, 10, or 15 years. This program is for homeowners with incomes below 80% of the median income in the state. Small commercial and non-profit organizations are also eligible for low-interest financing. Find more information on the NYSERDA website.

Protect your solar panels from shade with Solar Easements

A solar easement contract is a written agreement between you and another party, for example, your neighbor. This type of contract helps to ensure that your PV system will always have adequate sun exposure, protecting you from potential obstacles. It is voluntary, but can not be canceled unless a specific clause is included in the document. Once signed, it is tied to the land, not the owner.

Incentive/ Program	Description	Benefits	Eligibility/ Requirements	Notes
Federal ITC (30%)	30% tax credit on the total cost of solar system installation.	Reduces overall system cost, accelerates payback period.	Must own the system, meet IRS guidelines.	Applies to installation, equipment, and other associated costs.
Net Metering	Allows homeowners to sell excess solar energy back to the grid for credits.	Reduces or eliminates electricity bills.	Customers of participating utilities.	Credits at retail rate, monthly roll over. National Grid program.
Sales Tax Exemption	Exemption on specific solar equipment.	Reduces upfront costs.	Purchase of solar equipment.	Applies to components directly involved in electricity production.
Property Tax Exemption	Exemption on added property value from solar.	No increase in property taxes due to solar.	Application for solar system tax exemption.	Property value increases by ~4%.
NY-Sun Affordable Solar Financing	Financing for solar system installation.	Provides accessible financing.	Homeowners (income-restricted), small commercial, nonprofits.	Loans $1,500-$25,000, terms 5-15 years.
Solar Easements	Legal agreements to protect access to sunlight.	Ensures optimal solar panel performance.	Negotiated between property owners.	Must be a written and legal contract.

What are solar incentives, and why do they exist?

Governments want people to use solar energy, which is clean and good for the environment. But they know that putting solar panels on your house or business can cost a lot of money. To help with that cost, they offer special programs called solar incentives.

These incentives are like getting money back or discounts. One common way they help is through tax breaks. When you pay your taxes, you can take off some of the cost of your solar panels. This means you owe less money to the government. Sometimes, you might even get money back if the tax break is bigger than what you owe.

Another way they help is by giving you a rebate. This is like getting a refund after you buy and put in your solar panels. You might get a check in the mail, or they might just take the money off the price of the system when you buy it.

There's also something called a feed-in tariff. This is a bit different. If your solar panels make more electricity than you use, you can sell that extra electricity back to the power company. They pay you for it. This means you can earn money by making clean energy, which helps pay for your solar system.

Governments offer all this help because they know that using solar energy is good for everyone. It helps make the air cleaner, which is better for our health and the planet. It also helps create jobs in the solar industry, which is good for the economy.

For you, if you put solar panels on your house or business, these incentives mean you can save a lot of money. You get help paying for the system itself, and you also save money on your electricity bills every month. And, with feed-in tariffs, you might even make some extra money. Basically, solar incentives make it cheaper and easier to switch to solar. They help you save money while also helping the planet. It's a good deal for everyone.

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Julia Zaraeva

Author

Years of experience in translation and a love of nature help Julia find the right words to encourage going solar. She joined the team in 2023 and is happy to make her contribution to a greener future.