Is the NYS Solar Tax Credit Available in 2026?

Yes, the 25% NYS solar tax credit, officially called the Solar Energy System Equipment Credit, is available in 2026. It’s one of the most significant ways that you can save money on a new residential solar installation on Long Island.

See what the credit includes and start planning your switch to home solar with Power Solutions today.

The New York Solar Energy System Equipment Credit

You may qualify to claim New York’s solar tax credit if you purchase (outright or through finance) or lease a residential solar panel system for your primary home on Long Island.

• It’s worth 25% of the total cost of your system, up to a limit of $5,000.
• It is calculated from all items on your solar installation bill.
• The credit is applied to qualified lease expenditures on a prepaid solar lease.
• It is not refundable, but any excess credit can be carried over for up to five years.

Will the New York Solar Tax Credit Increase in 2026?

While there’s no confirmation for 2026, the New York State Senate has proposed that the limit on the solar tax credit increase from $5,000 to $10,000. Sponsors of Senate Bill S2626 have justified the increase by stating it will make solar more accessible to homeowners while assisting the state in meeting its 2040 carbon-free goals under the Climate Leadership and Community Protection Act.

As of September 2026, Senate Bill S2626 sits with the Budget and Review Committee. To pass into law, it would need to pass an on-floor vote and receive the Governor’s signature.

One of the Most Valuable Incentives to Switch to Residential Solar

Even at its current limits, the New York State solar tax credit is one of the most valuable incentives available to homeowners.

At Power Solutions, we can work with you to create a custom financing structure that applies your expected tax credit to an interest-free period. Financing is available with no money down for approved borrowers.

Alternatively, you can install and lease solar through the Participate Energy Program. A prepaid lease leverages the 30% commercial solar tax credit, which is applied as a discount. Leasing requires no minimum FICO score, and there’s no UCC lien placed on your home. You can even transfer the lease if you decide to sell your home later.

Power Solution is an award-winning Long Island solar contractor that gives you more options to get solar panels installed. New York’s tax credits help to keep solar costs down, which shortens the payback period and improves the total return on investment.

Find out what solar can do for your home with a detailed energy savings evaluation and cost/benefit analysis. Get started by requesting your free ballpark estimate, or talk to a solar specialist at (631) 348-0001 today.