Is There a Solar Tax Credit on Long Island in 2026?
Yes, there is a solar tax credit available if you live on Long Island. This credit is provided by New York State and is available for all photovoltaic systems that are financed or purchased outright.
Learn about the current tax credit and see how much you could potentially save when you install solar panels in Suffolk or Nassau County.
The New York State Solar Tax Credit
The New York State Solar Tax Credit is formally called the Solar Energy System Equipment Credit. This special credit is a dollar-for-dollar discount on your personal tax bill.
- It is worth up to 25% of your total solar bill, with a cap of $5,000.
- It can be carried forward for up to five years.
- If the credit exceeds your tax bill, you can continue to claim it within those five years until it is consumed or the carry-forward period ends.
This can significantly reduce the true cost of installing solar panels on Long Island.
What Happened to the Federal Solar Tax Credit?
The Federal Solar Tax Credit, also known as the Investment Tax Credit, was eliminated in 2025 under the One Big Beautiful Bill Act. This legislation ended funding for personal tax credits, although there are still credits available for large-scale developments and industry activity.
The federal government chose to focus on industries and job creation at the top end, rather than directly incentivize individual taxpayers. This has left it up to the states to provide direct incentives for families. New York is one of the best states to install solar, thanks to the state solar tax credit and a property tax break.
- Solar panels will not affect your property tax for the first 15 years of ownership.
- Solar panels are exempt from state and local sales taxes. This includes the individual panels and associated equipment used for installation (such as microinverters and wiring).
Even without the Federal Solar Tax Credit, solar remains affordable, and there are significant tax savings available for Long Island families.
Financing Your Solar Panels
You can finance your solar panels when you book your solar installation with Power Solutions. Our team works with trusted financing partners to offer installation with 0% down and an initial interest-free period.
- The interest-free period is based on your expected New York State Tax Credit.
- The remainder is applied to a second loan. Once you pay the interest-free period in full, you move to a standard term.
- You can customize the repayments to ensure that solar is affordable.
Most families see a payback period of 8 to 10 years. Solar panels last for 25+ years, allowing ample time to enjoy a return on your investment once the financing is paid off.
Ask for Your Free Ballpark Solar Estimate on Long Island
You can request a ballpark solar panel estimate today, using satellite data. Power Solutions is trusted throughout Long Island to provide the best advice, accurate cost/benefit predictions, and the most versatile solar panel systems designed for unique homes. All of our installations are custom.
Talk to us today at (631) 348-0001 and see how you can leverage New York State’s solar tax credit to make a lasting investment in your home.
