Solar in New York: market, incentives and VDER reality

Market snapshot

Solar in New York by the numbers

Installed capacity

6,600 MW

Homes powered

1,150K

Solar share of electricity

5%

Solar jobs in state

15,500

Typical cost per watt

$2.90

US ranking

#7

New York's solar market has been shaped by aggressive state climate policy (Climate Leadership and Community Protection Act, 2019 net-zero target by 2050) and the NY-Sun programme, which has delivered over $1 billion in solar rebates since 2014. Growth has been steady, with a strong mix of residential, commercial and community solar. Long Island, the Hudson Valley and Western NY have been the strongest residential markets.

Rates and net metering

Electric rates and how solar export is credited

Incentives

State and local solar incentives in New York

Beyond the 30 percent federal Residential Clean Energy Credit, which applies in every US state through 2032, New York has these state and local programmes.

NY-Sun Residential Incentive

NYSERDA's NY-Sun programme provides a per-watt upfront rebate for residential solar installations, applied directly by the installer. Rebate amount varies by region and declines as regional capacity is installed. Typical residential rebate: $200 to $500 for a 7 kW system in 2026.

New York State Solar Energy System Equipment Credit

25 percent state income-tax credit on residential solar system cost, capped at $5,000. Non-refundable; carries forward for up to 5 years. Applies in addition to the 30 percent federal credit, which combined can bring net cost well below 50 percent of gross.

Property-tax exemption

New York State's Real Property Tax Law Section 487 exempts the added assessed value of a residential solar system from property tax for 15 years. The exemption is at the option of each local government; most jurisdictions have opted in.

Sales-tax exemption

Residential solar PV equipment is exempt from New York State's 4 percent sales tax; local sales tax exemption varies by county (most counties have opted in).

Energy Storage Rewards (Long Island only)

PSEG Long Island offers a direct cash incentive for residential energy storage paired with new or existing solar, through the LI Energy Storage Rewards programme. Payment per kW of installed storage, capped per customer.

Permits and interconnection

Permits and interconnection

Permit timelines in New York vary dramatically by jurisdiction. New York City uses the Department of Buildings for permits with timelines of 4 to 10 weeks (longer than most states); Long Island permits through local towns are typically 3 to 6 weeks. Upstate jurisdictions are generally faster. Interconnection timelines are often 4 to 8 weeks post-install, longer in Con Edison territory.

Running a solar company here

Running a solar company in New York

Running a solar company in New York means operating in a market with strong state policy support (NY-Sun rebates, state tax credit, property-tax exemption, sales-tax exemption) but also with the slowest permits and interconnection in the top 10 states. The installers who have scaled fastest are typically specialists in one geographic sub-market (NYC and Long Island are very different from Buffalo and Rochester) rather than statewide operators. Lead costs on Google Search are high in NYC metro ($180 to $300) and more reasonable upstate ($100 to $160).

Questions people ask

Solar in New York: FAQ

Does New York have net metering?

Yes for residential, under Phase One VDER. Residential solar customers receive full retail net metering credits for exports. Non-residential systems above 5 MW use the Value Stack, which credits exports based on multiple value components rather than a single retail rate.

What is the NY-Sun rebate?

NY-Sun is a NYSERDA-administered residential solar rebate programme that provides a per-watt upfront incentive, applied directly by the installer at the time of installation. Rebate amount varies by region and declines as regional capacity is installed. Typical rebate for a 7 kW residential system in 2026 is $200 to $500 depending on region.

What is the New York state solar tax credit?

25 percent of the installed system cost, capped at $5,000. Non-refundable but carries forward for up to 5 tax years. Combined with the 30 percent federal Residential Clean Energy Credit, total tax-based incentive on a $25,000 residential system can exceed $12,500.

How much does solar cost in New York?

Residential solar in New York averages around $2.90 per watt installed, among the higher in the US due to labour costs and permit complexity. A typical 7 kW system costs about $20,000 gross. After the NY-Sun rebate, 30 percent federal credit and 25 percent state credit, net cost is often under $9,000.

How many solar companies are in New York?

Roughly 400 to 500 licensed solar contractors operate in New York, concentrated in NYC metro, Long Island, Hudson Valley and the Western NY cities. The market is relatively fragmented: no single installer dominates statewide; most are regional specialists.