RESIDENTIAL INCENTIVES

Federal, state and city financial incentives are available to support investments in solar. Below is an overview of the incentives available for installing a solar electric system on a residential building in New York State. Some of these incentives are tax related and vary from case to case, so you should consult your tax professional to determine your eligibility for tax benefits, and whether any incentives you receive are considered taxable income.

Federal

Federal Tax Credit: Residential building owners are eligible to receive a federal tax credit (not a deduction) that can reduce the amount of federal income tax they owe or increase their tax refund. The credit is based on 30% of the total system cost (less any NY-Sun rebates) for residential systems placed in service between December 31, 2021, and January 1, 2033. For more information, visit: DSIRE 

New York State

NY-Sun Incentive: 

The NY-Sun Initiative provides incentives for installing solar electric systems throughout the state. Incentives are distributed through three regions: Con Edison, PSEG Long Island, and Upstate The NY-Sun incentive is funded by the System Benefits Charge (SBC) that appears on your utility bill and is paid directly to the installing contractor.

Under the Megawatt Block incentive structure, each region and sector (commercial or residential) is assigned a series of MW targets at certain incentive levels, referred to as “blocks.” As applications are submitted, incentives at the current level are claimed until the MW target for that block is reached. The block is then closed and a new block, with a new target and a lower incentive level, is started. Once all of the blocks for a particular region and sector are filled, an incentive for that region and sector will no longer be offered. View real time available incentives by block on the Megawatt Block Dashboard. 

New York State Tax Credit: Residential building owners who install solar may be eligible for a tax credit for the lesser of 25% of the installed cost of the solar energy system (up to 25 kW on net-metered systems) after the NYSERDA incentive, or $5,000. For more information, visit: DSIRE

Sales Tax Exemption: New York exempts the sale and installation of residential solar-energy systems from the state's sales and compensating use taxes. The exemption applies to solar-energy systems that utilize solar radiation to produce energy designed to provide heating, cooling, hot water and/or electricity. The exemption does not apply to solar pool heating or other recreational applications. In addition, New York City and some other local jurisdictions also grant exemption from local sales and use taxes for residential solar energy systems. DSIRE

NYS Historic Homeownership Rehabilitation Tax Credit: This credit can reduce the cost of solar projects by 20% for homeowners in eligible districts. The Historic Homeownership Rehabilitation Credit (HHRC) covers 20% (up to a $50,000 in credits) of the cost of improvements – including solar installations – that are completed on owner-occupied homes located within:

1. historic districts listed on the National Register of Historic Places AND

2. income-qualified census tracts.

These zones continue to form and expand.

New York City 

New York City Property Tax Abatement (PTA): Building owners who place a grid-connected solar energy system into service from January 1, 2024 to January 1, 2034 are eligible for a four-year Tax Abatement of 7.5% per year of the installed cost of the system, for a total of 30%. Abatements are applied after the NY-Sun Incentive and capped at $62,500 per year or $250,000 total. This tax abatement is spread equally over four years and may not exceed your property tax liability for any given year.

If you wish to apply for this incentive, you or your solar installer will need to hire a New York State registered architect or professional engineer to file the paperwork with the Department of Buildings. For more information, visit: NYC DOB Tax Abatement