- New York residential power runs about 28.55 cents per kWh, above the national average, so solar offsets an expensive bill (EIA, as of March 2026).
- NY-Sun pays an up-front per-watt rebate that declines as regional blocks fill; it is active in Con Edison and Upstate (recently about $0.15 to $0.20/W standard, more for low-to-moderate-income), while Long Island residential blocks are closed (NYSERDA).
- The New York State Solar Energy System Equipment Credit is worth 25% of cost up to $5,000, and you can claim it whether you buy, lease, or sign a 10-year-plus PPA (NY Tax).
- Net metering still applies, but systems connected since January 1, 2022 pay a monthly Customer Benefit Contribution (CBC) of about $0.97 to $1.67 per kW (NYSERDA CBC rates).
- Solar is exempt from the 4% state sales tax, and the added home value is exempt from property tax for 15 years under RPTL 487, unless your locality opted out (NY Solar Map).
- The 30% federal residential credit (IRC Section 25D) ended December 31, 2025 and is no longer available for new residential installs, so a New York homeowner buying in 2026 cannot claim it (IRS).
New York homeowners pay about 28.55 cents per kWh for electricity (EIA retail sales, residential NY, as of March 2026), well above the U.S. average, so cutting that bill is worth real money. New York pairs that with an up-front NY-Sun rebate, a 25% state credit that even lease and PPA customers can claim, net metering, and two tax exemptions, none of which depend on the federal tax credit that ended after 2025. This page covers what New York actually pays in 2026, the catches worth knowing, and how to tell if your home qualifies.
Why solar pays in New York
High rates plus a rebate and a state credit is the reason. At about 28.55 cents per kWh, a New York home with a $150 to $300 monthly bill offsets expensive grid power with every kilowatt-hour the roof makes. Your production drives both your bill savings and the size of your NY-Sun rebate, so estimate your roof’s likely output with NREL’s free PVWatts calculator; actual production depends on your roof’s pitch, orientation, and shading. What sets New York apart is that its 25% state credit reaches lease and PPA customers too, not just buyers, which is unusual among the states.
New York solar incentives at a glance
New York’s stack is generous but comes with fine print: the NY-Sun rebate varies by region and is closed on Long Island, and net metering now carries a monthly fee. Here is what each one pays in 2026 and the catch worth knowing.
| Incentive | What it pays | 2026 value and status | Who receives it | Source |
|---|---|---|---|---|
| NY-Sun rebate | An upfront per-watt price reduction | About $0.15 to $0.20/W in Con Ed and Upstate; Long Island residential closed | Passed through to the homeowner (buy or lease) | NYSERDA |
| State Equipment Credit | A state income-tax credit | 25% of cost, up to $5,000; available to buy, lease, or 10-year-plus PPA | The homeowner who lives there | NY Tax |
| Net metering | A bill credit for power you export | 1:1 retail netting, minus a monthly CBC fee | The homeowner | NYSERDA |
| Sales-tax exemption | Waives state sales tax on equipment | 100% of the 4% rate (localities may also exempt) | The buyer | NY Solar Map |
| Property-tax exemption (RPTL 487) | Excludes solar’s added value from assessment | 100% of added value for 15 years, unless the locality opted out | The owner | NY Solar Map |
| Federal residential (Section 25D) | A 30% homeowner credit | Ended for expenditures made after December 31, 2025 | No 2026 homeowner-buyer | IRS |
The standout is the state credit. The New York State Solar Energy System Equipment Credit is worth 25% of your qualified cost, capped at $5,000, claimed on Form IT-255 (NY Tax). New York is unusual because you can claim it whether you purchase the system, sign a written lease, or sign a power-purchase agreement of at least 10 years; lease and PPA customers calculate qualified expenditures under Form IT-255. Most states reserve their solar incentives for owners, so this is a real edge for New Yorkers who go with a no-up-front option. For a full 2026 breakdown of the state credit, the New York City property-tax abatement, the tax exemptions, and what the federal residential credit that ended December 31, 2025 changed, see our guide to New York solar tax credits in 2026.
Heads up, the NY-Sun catch: the NY-Sun rebate steps down as each region’s block fills, varies by utility region, and the Long Island residential blocks are fully subscribed and closed, so do not assume a fixed dollar amount. Pull the live per-watt value from the NYSERDA dashboard before you sign. For the region-by-region breakdown of what NY-Sun actually pays in 2026, see our NYSERDA solar incentive guide. Confirm every figure against the linked source, and ask a tax professional about your situation. MySolarFY does not provide tax advice.
See what solar programs are available in your ZIP code
Solar incentives, net-metering credits, installer availability, and electric rates change by utility and location. Enter your ZIP and we’ll match you with licensed installers who serve your area.
Free to check. About a minute. No credit pull to check.
Submitted securely and used to match you with licensed installers in your area. Some homeowners may qualify for $0-up-front lease/PPA options where available.
Net metering in New York, and the CBC charge
New York still offers net metering, but with a monthly fee. Exported power is credited against imported power at the retail rate, which is valuable at New York’s rates. The catch is the Customer Benefit Contribution: any residential system interconnected on or after January 1, 2022 pays an ongoing monthly charge based on system size, set by each utility and updated yearly (NYSERDA). It does not change the 1:1 netting; it is a separate line item that trims the savings. For the mechanics of how export credits work, see how net metering credits your solar exports. For the full New York breakdown, including the 2026 Customer Benefit Contribution rates by utility and how retail-rate net metering compares with the market-based Value Stack, see New York net metering and the VDER Value Stack. For the full set of dated New York numbers, average rate, per-city production, cost, and payback, see our New York solar data and statistics.
| Utility | 2026 CBC (about, per kW per month) |
|---|---|
| Central Hudson | $1.67 |
| RG&E | $1.31 |
| Con Edison | $1.41 |
| NYSEG | $1.19 |
| LIPA | $1.13 |
| Orange & Rockland | $1.00 |
| National Grid | $0.97 |
Con Edison customers in New York City and Westchester can see exactly how that monthly charge nets out against net metering, with worked 2026 numbers by system size, in our Con Edison CBC charge and net metering guide.
RG&E customers around Rochester carry one of the higher CBC charges in the state at $1.31 per kW a month, and our RG&E solar, net metering, and CBC guide shows how that nets out against retail net metering with worked 2026 numbers.
On a 7 kW system the CBC runs roughly $80 to $140 a year, depending on your utility, so it reduces but does not erase the value of net metering. To see how the credit lowers your monthly cost, read how solar lowers your electricity bill.
For the net-metering rules, credit rates, and interconnection steps at your specific utility, see our guides to Con Edison net metering rules and rates, Con Edison Westchester net metering rules and rates, PSEG Long Island net metering rules and rates, National Grid upstate net metering rules and rates, NYSEG upstate net metering rules and rates, Orange & Rockland net metering rules and rates, and Central Hudson net metering rules and rates.
How you pay changes which incentives you keep
The way you finance solar decides who owns the system. New York is friendlier than most states here, because both the NY-Sun rebate and the 25% state credit can reach lease and PPA customers.
| How you pay | Up-front cost | Who owns the system | NY-Sun + 25% state credit | Net metering |
|---|---|---|---|---|
| Cash | Full system price | You | Both, claimed by you | Yours, minus the CBC |
| Solar loan | Little or none, financed over time | You | Both, claimed by you | Yours, minus the CBC |
| Lease or PPA (10+ years) | $0-up-front where you qualify | A third-party company | Rebate passed through; you may still claim the 25% credit on your payments | Yours, minus the CBC |
If you own the system (cash or loan), you take the NY-Sun price reduction and claim the 25% state credit directly. If you lease or sign a PPA of at least 10 years, the NY-Sun rebate still lowers your price, and New York lets you claim the 25% state credit on your qualified payments under Form IT-255, which is unusual. Neither path gives a 2026 New York homeowner the federal residential credit, since that credit ended after December 31, 2025. For a deeper payback comparison, see the financial case for whether solar panels are worth it.
What changed federally, and what it means for New York
The federal homeowner credit is gone, but New York’s incentives are not. The 30% federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, under the One Big Beautiful Bill Act, so a New York homeowner who buys solar with cash or a loan in 2026 cannot claim it (IRS OBBB FAQ; SEIA). New York’s NY-Sun rebate, its 25% state credit, net metering, and the tax exemptions were not affected, and together they can add up to more than the old one-time federal credit. For the full timeline, see what the federal solar tax credit change means in 2026.
One federal exception exists, and it is not yours to claim. A separate commercial credit, Section 48E, is claimed by the business that owns a leased or PPA system, not by the homeowner, and it runs for projects placed in service through 2027, with a begin-construction safe harbor by July 4, 2026 (IRS Clean Electricity Investment Credit; SEIA tax policy). On a New York lease, the company that owns the panels claims that commercial credit, while you may separately claim the state 25% credit on your payments. The 25D homeowner credit, by contrast, ended after December 31, 2025.
How to choose a solar installer in New York
New York has a deep market of licensed installers. Rather than chasing a “best” list, screen any installer against objective criteria:
- NABCEP certification, the industry’s professional standard for PV installers.
- Proper New York licensing and any required local electrical and building permits.
- A clear workmanship and equipment warranty in writing.
- Real New York experience and verifiable reviews, plus help with your NY-Sun paperwork and net-metering interconnection.
- A written production estimate and a transparent quote you can compare. For a checklist, see the right questions to ask a solar installer.
MySolarFY matches you with licensed installers that serve your area so you can compare real local quotes side by side, with no obligation.
Solar by New York city
Costs, incentives, and utility rules shift by neighborhood and utility territory, so it pays to check the numbers where you actually live. For local cost, incentive, and net-metering detail, see our city guides:
- New York City (Con Edison): Manhattan solar, Brooklyn solar, Queens solar, the Bronx solar guide, and Staten Island solar.
- Westchester (Con Edison): Yonkers solar, New Rochelle solar, Mount Vernon solar, and White Plains solar.
- Long Island (PSEG Long Island): start with our whole-island Long Island solar guide, then your town: Hempstead solar, Garden City solar, Great Neck solar, Hicksville solar, Port Washington solar, Valley Stream solar, and Westbury solar.
- Upstate New York (National Grid): Buffalo solar, Syracuse solar, and Albany solar.
- Rochester / Finger Lakes (RG&E): Rochester solar.
- Southern Tier (NYSEG): Binghamton solar.
- Hudson Valley (Central Hudson): Newburgh solar and Poughkeepsie solar.
Frequently asked questions
What solar incentives does New York offer in 2026?
New York offers an upfront NY-Sun per-watt rebate (active in Con Edison and Upstate, closed for Long Island residential), the New York State Solar Energy System Equipment Credit worth 25% of cost up to $5,000, net metering with a monthly Customer Benefit Contribution fee, a 100% exemption from the 4% state sales tax, and a 15-year property-tax exemption on the value solar adds to your home (NYSERDA; NY Tax). The exact NY-Sun and CBC numbers reset on a schedule, so confirm the current values before you sign.
What happened to the federal solar tax credit?
The 30% federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, under the One Big Beautiful Bill Act. A New York homeowner who buys solar in 2026 with cash or a loan cannot claim it. A separate commercial credit (Section 48E) can apply to leased and PPA systems, but the business that owns the system claims it, not the homeowner. New York’s own incentives, NY-Sun, the 25% state credit, net metering, and the tax exemptions, were not affected. See our guide on what the federal solar tax credit change means in 2026.
How much is New York’s state solar-equipment credit, and can I get it if I lease?
It is the New York State Solar Energy System Equipment Credit, worth 25% of your qualified cost, capped at $5,000, on Form IT-255 (NY Tax). New York is unusual: you can claim it if you buy the system, sign a written lease, or sign a power-purchase agreement of at least 10 years, with lease and PPA customers basing the credit on their qualified payments. That makes the credit reachable even on a no-up-front plan, which most states do not allow. Confirm the exact calculation with the Form IT-255 instructions or a tax professional.
How does net metering work in New York, and what is the CBC?
New York credits exported power against imported power at the retail rate, but residential systems interconnected on or after January 1, 2022 pay a monthly Customer Benefit Contribution based on system size (NYSERDA). In 2026 the CBC runs about $0.97 to $1.67 per kW per month depending on utility, roughly $80 to $140 a year on a 7 kW system. It does not change the 1:1 netting; it is a separate fixed charge that trims the savings, and the rate is reset yearly by each utility.
What is the NY-Sun rebate worth in 2026?
NY-Sun pays an upfront per-watt incentive that the installer passes through as a lower price, and it declines as each region’s Megawatt Block fills (NYSERDA). As of 2026 it is active in the Con Edison and Upstate regions, recently around $0.15 to $0.20 per watt for standard projects and more for low-to-moderate-income households, while the Long Island residential blocks are fully subscribed and closed. Because the value steps down on a schedule, pull the live number from the NYSERDA dashboard before you commit.
Do I qualify for New York solar incentives if I lease or sign a PPA?
More than in most states. The NY-Sun rebate lowers your installed price whether you buy or lease, and New York lets lease and 10-year-plus PPA customers claim the 25% state credit on their qualified payments, which is rare. Net metering applies either way, and you pay the monthly CBC either way since it sits on your utility bill. The federal commercial credit on a leased system goes to the company that owns it, not to you. If you want every incentive in your own name, owning the system captures the most.
Reviewed by the MySolarFY team. Figures were verified against the linked New York (NYSERDA, NY Department of Taxation and Finance), DSIRE, EIA, and IRS sources as of June 2026; the NY-Sun and CBC values reset on a schedule, so confirm current terms with each source before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional about your own situation. Learn more about the MySolarFY team and how we work.
MySolarFY is a free service that matches homeowners with licensed solar installers. We are not an installer, financing company, or government program. “No up-front cost” refers to qualifying lease or PPA financing, where eligible homeowners may have no out-of-pocket cost at installation. Lease and PPA terms typically run 20 to 25 years, may include an annual price escalator, and total payments may exceed the cost of a cash purchase. Homeowners do not get the federal residential credit that ended after December 31, 2025; on a leased system the company that owns it claims any commercial credit. Solar panels are not free and monthly payments apply. Eligibility, savings, incentives, and rates vary and are not guaranteed. See our full disclaimer.
