2025 Solar Incentives in New York: Federal & State Credits You Can Still Claim

Stack the 30% federal Residential Clean Energy Credit with New York State tax credits, exemptions, and NY-Sun incentives to lower your solar costs.

Solar is more affordable than ever for New York homeowners thanks to a powerful mix of federal and state incentives. In 2025, you can combine the 30% federal Residential Clean Energy Credit with New York’s state income tax credit, sales and property tax exemptions, and region-based NY-Sun incentives to meaningfully reduce your out-of-pocket cost. Below is a clear, homeowner-friendly guide. When you’re ready to run the numbers on your home, the team at Sunshine Plus Solar can design a custom system and apply qualifying incentives for you.

1) Federal Residential Clean Energy Credit (30%)

The cornerstone incentive for residential solar remains the federal credit at 30% of qualified system costs (equipment, labor, and related costs). Battery storage installed with or without solar also qualifies. This is a non-refundable income tax credit and can be carried forward if it exceeds this year’s tax liability. Work with your tax professional to claim it properly and keep your final paid invoices and completion documents. To maximize your benefit, coordinate your project timeline and documentation with your installer.

2) New York State Solar Equipment Income Tax Credit (25% up to $5,000)

New York offers a separate state personal income tax credit equal to 25% of eligible solar costs, capped at $5,000. This credit can be claimed in addition to the federal credit, further lowering your net cost. It’s typically non-refundable, but unused amounts may be carried forward. If you own your system and file NYS personal income tax, this is often one of the most valuable stackable incentives for Long Island and downstate homeowners.

3) Sales Tax Exemption on Residential Solar

New York exempts the sale and installation of residential solar-energy systems from state sales and compensating use tax. Localities may also offer local exemptions. This reduces your upfront invoice at the point of purchase and installation, keeping more money in your pocket on day one.

4) 15-Year Property Tax Exemption (RPTL §487)

Under New York’s Real Property Tax Law §487, the added value from an eligible solar energy system can be exempt from real property tax for 15 years. Some municipalities opt out or require specific filings, so it’s important to check local rules and submit the right forms by the taxable status date. Our team will guide you through the paperwork and timelines so you don’t miss the window.

5) NY-Sun Incentives (Regional Block Program)

New York’s NY-Sun program provides upfront incentives that vary by region and customer type. Funds move in “MW Block” steps and can change as capacity fills, with enhanced incentives available for income-qualified homeowners. Because availability and levels shift over time, Sunshine Plus Solar monitors the program landscape and applies on your behalf when funds are available.

How These Stack for a Typical Home

In a standard homeowner scenario, you first reduce your invoice by any applicable NY-Sun incentive, benefit from the sales-tax exemption at purchase, then claim the 30% federal credit and the 25% NYS credit (up to $5,000) at tax time. The 15-year property tax exemption helps keep your assessed value increase from raising your annual property tax bill. The net effect is a much faster payback and stronger lifetime ROI.

What About Net Metering?

While not an “incentive” in the tax-credit sense, New York’s net metering and successor valuation frameworks allow you to capture value for excess solar production as bill credits, improving cash flow and shortening payback. Properly sizing your system and using smart inverters and (optionally) battery storage can help you maximize bill savings throughout the year. Read our full explainer here: How Net Metering Works for NY Solar Customers.

Get a Custom Incentive Estimate for Your Home

Every roof, utility territory, and tax situation is different. The fastest way to understand your out-of-pocket cost, credits, and projected bill savings is to request a tailored proposal. Book a free consultation and Sunshine Plus Solar will handle the design, paperwork, and incentive applications from start to finish.

Disclaimer: Incentive programs and tax laws can change, and eligibility depends on your specific project, location, timing, and tax situation. Always consult a qualified tax professional.