Is the New York State Solar Tax Credit Increasing in 2026?

As of January 23, 2026, legislation around the New York State Solar Tax Credit remains unchanged. The state offers a maximum $5,000 credit based on the total cost of a solar installation.

There is pending legislation to increase the cap to $10,000, which could significantly boost savings if passed.

What’s the Status of New York’s Solar Tax Credit?

New York’s Solar Energy System Equipment Credit (commonly known as the “solar tax credit”) is available as a personal credit under Form IT-255.

• It allows a credit of 25% based on the cost of a total solar panel installation, including equipment and battery energy storage systems.
• It’s capped at $5,000 and will not increase unless newly proposed legislation is passed.
• It can carry over for up to 5 years, allowing taxpayers to maximize the benefit even if the value exceeds a single-year tax bill.

Lawmakers have proposed increasing the cap to $10,000, which would massively improve the value for families who install large solar arrays. Currently, this credit doesn’t scale well for systems that cost more than $20,000 to install.

The proposal (Senate Bill S2626) is currently sitting with the New York Senate Budget and Revenue Committee. Power Solutions is closely tracking this legislation and will update our customers as the situation evolves.

Even without an increase in 2026, the New York State tax credit is still the most significant credit or solar incentive available to homeowners, after the sunsetting of the Federal Investment Tax Credit late last year.

How Can I Make Solar More Affordable?

Applying for the State tax credit is one way to make solar more affordable, but choosing the right solar company also matters.

Power Solutions is the top-rated solar installer on Long Island, attracting more positive review scores than large competitors, including SUNation Energy in New York. We make solar more affordable by offering more personalization and customization. Rather than trying to fit customers to cookie-cutter solutions, we build solar panel installations from the ground up based on household energy needs.

• We prioritize savings, ensuring a strong return on investment and a shorter solar payback period. Our Long Island customers often enjoy payback periods of 8 to 10 years on solar panels that are expected to last for 25 to 30 years.
• We carefully evaluate properties to ensure suitability for solar. Our initial estimates use satellite data. Our detailed on-site estimates apply our expertise in drone surveying, physical inspection of the roof, and computer analysis of shade structures that affect solar production.
• Our solar panels use microinverters. These inverters are installed per-panel, dramatically improving reliability and efficiency, even in partially-shaded conditions.
• We offer free cost/benefit evaluations to help families understand the true value of switching to solar.

If you want more affordable and reliable solar, talk to the most trusted solar company near you. Power Solutions has served Long Island since 2009, installing modern and efficient solar panel arrays. Request your free ballpark solar estimate, and make the most of the New York State solar tax credit.