How Much Can I Get From the New York Solar Tax Credit?
As of 2026, the New York Solar Tax Credit is worth 25% of your total solar bill, up to a maximum of $5,000. It is the most valuable solar incentive available to homeowners and can significantly reduce the cost of a solar installation.
Key Takeaways
- New York’s Solar Installation Tax Credit is Worth 25% of the Total Bill.
- It is Available When Installing Solar at Your Primary Home.
- The Credit Can Carry Over for Five Years.
NY State Solar Tax Credit Specifics
The New York State Solar Tax Credit is officially called the Solar Energy System Equipment Credit.
You can claim this personal tax credit if:
- You install residential solar and purchase your solar panel system outright (or finance it).
- You sign a written lease for a solar energy system.
- You sign a written agreement to purchase solar energy from equipment not owned by you, for at least ten years.
Monetarily, this credit can significantly offset the cost of switching to solar.
- It’s a dollar-for-dollar credit worth up to 25% of the total solar expenditure, either a purchase or a long-term lease agreement.
- The total value of the credit is capped at $5,000.
- It is non-refundable, but you can carry it over for five years. If the total credit exceeds your tax bill, you can continue to claim it until it is consumed, or five years pass.
All details about this credit are published by the New York State Department of Taxation and Finance.
What Happened to the Federal Tax Credit?
The Federal Tax Credit for solar installation expired on December 31st, 2025. Funding for this credit was eliminated under the One Big Beautiful Bill Act of 2025.
New York is one of a few states that still offers direct tax incentives to residents, making Long Island one of the best places to install solar panels at a reduced real cost.
The average solar panel installation on Long Island is around $2.81 per watt, or $14,055 before any incentives. If applying the tax credit in this example, the homeowner would be eligible for a state tax credit of $3515.75, making the real cost of installation $10,539.25.
Larger homes that require more solar panels will have a higher installation bill, potentially maximizing the credit at $5,000.
Get an Obligation-Free Estimate and Cost/Benefit Analysis
New York’s solar tax credit makes it more affordable to switch to solar. You can talk to the top-rated team at Power Solutions to find out if solar is right for you.
- We offer free ballpark estimates and consultations.
- We use drone technology and software modeling to predict solar savings.
- You will receive a detailed cost/benefit analysis before you commit to solar.
You can see the long-term value of solar without any financial risk. Request your free estimate online, or talk to our team at (631) 348-0001 today.
