Federal Solar Investment Tax Credit (30%) Buy a new home solar system, and you will be eligible for the 30% federal tax credit. A tax credit is a dollar-for-dollar reduction in the amount of income tax you would otherwise owe. This credit also applies to energy storage systems that are charged by your solar system.

New York State Tax Credit (25%) A 25% state solar tax credit – up to $5,000 per system – is available to anyone who purchases a solar energy system for their home. Combined with the federal tax credit, you can expect to reduce your system cost by up to 50% in the first year.

NYSERDA Solar Rebate The New York State Energy Research and Development Authority (NYSERDA) provides a cash rebate to solar installations through the NY-Sun program. This rebate is paid directly to your solar company and reduces your upfront project cost. The rebate amount varies depending on geographic location.

NYC Solar Electric Generating System (SEGS) Tax Abatement Applied over a four-year period, the SEGS provides a property tax abatement for homes that use solar power. The program allows property owners to deduct 5% of the cost of the solar system each year from property tax bills.

Net Metering Net metering is a program that requires your electric company to purchase excess electricity your solar panels produce. For example, your system may produce more electricity on a typical sunny day than your home consumes. When solar production exceeds usage, the utility meter will “spin” backward and provide you with credits. These credits can then be used when the solar system is not producing electricity, such as at night. In New York, when your solar system produces more electricity than you use, you will be compensated at the full retail value of the electricity. Excess monthly production accrues until the end of an annual period, at which point the extra energy is paid at the utility’s avoided-cost rate. New York recently instituted a Customer Benefit Contribution Charge (CBC) which requires homeowners with solar installed after January 2022 to pay from $0.30 to $1.33 per kilowatt of solar installed.

New York Property Tax Exclusion The New York State Real Property Tax Law provides a 15-year real property tax exemption for solar, wind energy, and farm-waste energy systems constructed in New York State. As currently effective, the law is a local option exemption, meaning that local governments are permitted to decide whether or not to allow it.

New York Sales Tax Exemption In New York, no sales tax will be added to the purchase of your solar system.

This guide provides an overview of the different federal, state, and local incentives available to those interested in residential solar. It does not constitute professional tax advice or other professional financial guidance. This overview should not be used as your only source of information. Other sources should be consulted when making purchasing, investment, and tax decisions; or while executing other binding agreements.