New York solar rebates and incentives: 2026 guide

Solar panels might seem expensive, but if you live in New York, you're in luck. Your state offers some of the most generous solar and storage incentives in the country, helping thousands of homeowners shrink their upfront costs while locking in decades of lower electricity bills. There are multiple ways to bring down the price of going solar—and start saving sooner than you might think.

Even better? The long-term savings from reduced electricity costs typically outweigh your upfront investment considerably. Here's how to take advantage of New York's solar and storage incentives.

Incentives help bring solar's price tag down considerably in New York. While the current residential Megawatt Block Program incentives are full as of September 2026, the state tax credit can still cut your costs by thousands of dollars:

New York Solar Energy System Equipment Credit

The New York solar tax credit can reduce your state tax bill by 25%, up to $5,000. You don't need to purchase your solar panel system to receive this tax credit: If you enter into a written solar lease or power purchase agreement (PPA) that lasts at least 10 years, you'll still qualify.  

If you don't have enough tax liability to take advantage of the full tax credit, you can roll over any remaining credit for up to five years.

In addition to the great rebates and incentives above, New York also offers tax exemptions for solar panel systems.

If your solar panel system is less than or equal to 25 kW in size and it's connected to the grid, you can benefit from net metering, one of the best solar panel incentives available in New York. With net metering, you earn credits when you send excess electricity from your solar panels to the grid. When the sun isn't shining and you need to pull electricity from the grid, your utility will apply the credits to your bill. Net metering makes it so you will owe very little, or even nothing, on your electric bills with solar panels. 

New York is transitioning from net metering to the Value of Distributed Energy Resource (VDER), also known as the Value Stack. It’s currently in phase two, but you can still choose net metering or VDER in 2026. 

The VDER tariff is based on five key factors: the locational-based marginal pricing (LBMP), capacity (ICAP), environmental value (E), demand reduction value (DRV), and locational adders (LSRV). If this sounds confusing, that's because it is. The easiest way to see your expected VDER tariff is by using New York State Energy Research and Development (NYSERDA)'s free Value Stack Tariff calculator.

Due to its complexity, the VDER tariff rate is a lot less predictable than net metering. In most cases, you'll save a lot more over 20 years by signing up for net metering while it lasts instead of the VDER tariff. As of September 2026, any solar panel system interconnected in New York can lock in net metering for 20 years. 

Since 2022, you have to pay a capacity-based Customer Benefits Contribution (CBC) charge each month with a solar panel system. The charge is higher for net metering customers than for VDER tariff customers, but it's still usually best to sign up for net metering. Here's how much the CBC will cost you for a residential solar panel system in 2026:

*The VDER tariff is not available to LIPA customers.

New York’s Megawatt Hour Block Incentive is aimed at making energy storage more accessible. It provides an upfront dollars-per-kilowatt-hour ($/kWh) rebate for residential energy storage systems. 

Your rebate amount depends on the size of your system, your region, and your income. Low-to-moderate income (LMI) households may qualify for Inclusive Storage Incentives (ISI), which provides a higher rebate amount. The incentive is declining, meaning its value decreases over time. 

As of September 2026, here's what you can expect for residential systems up to 25 kWh in size:

Local rebates and incentives

Your local utility company may offer additional storage rebates or incentives. 

• Virtual power plants (VPPs): Eligible battery owners can earn extra income by allowing their system to support the grid during peak demand events. In addition to VPP programs offered directly by utility companies like National Grid and Con Edison, companies such as Sunrun and Tesla work with local utility companies to offer payments or bill credits in exchange for occasional battery dispatch.