Is there an SREC market in New York State?

No. New York does not operate a retail Solar Renewable Energy Credit (SREC) market the way New Jersey or Pennsylvania do. NY homeowners generate RECs (Renewable Energy Certificates) alongside their solar electricity, but those RECs are typically bundled with the energy and are not automatically tradeable on a separate spot market. National brokerage platforms such as SRECTrade and Flett Exchange do allow NY homeowners to register and sell their RECs independently, but NY REC prices are typically $15–$40 per MWh — a minor income stream compared to the state's primary incentive programs.

How are NY RECs priced, and is it worth selling them separately?

NY RECs trade in the $15–$40 per MWh range on voluntary markets, which works out to roughly $1.50–$4.00 for every 100 kWh your system produces. A 7 kW system on Long Island generating about 8,500 kWh per year would yield one 8.5 MWh REC bundle annually — worth $128–$340 at those prices. That's real money over a 25-year system life, but it's secondary to the VDER tariff and tax credits that form the core of your financial case. Registration on SRECTrade takes roughly 30 minutes and there's no upfront cost, so it's worth doing.

What is the VDER tariff, and how does it differ from net metering?

VDER stands for Value of Distributed Energy Resources. Under PSEG Long Island's VDER tariff, excess solar production earns credits based on a multi-component Value Stack rather than a simple one-for-one kilowatt- hour offset. Components include the energy value, capacity value, environmental value, and a locational component. The effective credit rate typically lands between $0.07 and $0.20 per kWh depending on when during the day and year you export. Classic net metering credited you at your full retail rate (around $0.22–$0.26/kWh for PSEG-LI residential customers); VDER credits are usually lower, which is why right-sizing your system to your actual load — rather than over- building — matters more under VDER.

Can a NY homeowner sell their RECs independently?

Yes, with some paperwork. You must register your system with NYSERDA's NY-RETS (Renewable Energy Tracking System) and then list your RECs through a broker such as SRECTrade or Flett Exchange. Your installer can provide the system documentation needed for registration. Note that once you sell a REC, you've transferred the environmental attribute — you can no longer claim your electricity is "renewable" for personal or marketing purposes. Most Long Island homeowners find the administrative overhead barely worth the $128–$340 per year, but for systems above 10 kW it becomes more compelling.

What is the total incentive stack for a 7 kW system on Long Island?

Starting from a typical installed cost of $28,000 for a 7 kW system: the federal Investment Tax Credit (ITC) at 30% takes off $8,400, leaving $19,600. The NY State tax credit covers 25% of the system cost, capped at $5,000, which removes another $5,000. Net cost after both tax credits is approximately $14,600. If you're in a NYSERDA NY-Sun eligible territory with remaining incentive funds, an additional rebate (historically $350/kW for ConEd territory; lower or exhausted for PSEG-LI territory as of 2026 — confirm current availability with your installer) could reduce cost further. Most Long Island homeowners land in the $14,600–$18,000 net range depending on rebate availability and tax liability.

Incentives

SRECs Explained for NY Solar Homeowners: What Long Island Gets Instead

Huntington Solar Co Published June 25, 2026

New York does not have a traditional SREC market — if you’ve been reading New Jersey or Pennsylvania solar guides, that information doesn’t apply here. What Long Island homeowners actually earn is a different set of incentives: a VDER-based export tariff through PSEG-LI, two tax credits that together cover more than 40% of system cost, and an optional REC sale on national voluntary markets.

Why NY Doesn’t Have a Retail SREC Market

Solar Renewable Energy Credits exist wherever a state has a Renewable Portfolio Standard (RPS) that utilities can comply with by purchasing SRECs from generators. New Jersey built a strong compliance market because its RPS specifically carves out solar, creating sustained demand and prices that have historically ranged from $200 to over $400 per SREC.

New York’s Clean Energy Standard works differently. The state’s obligations are largely met through utility-scale procurement and existing hydro, wind, and large solar facilities. Residential rooftop systems do generate RECs under the NY-RETS tracking system, but those RECs don’t flow into a high-price compliance market. The state has instead channeled its residential solar support into direct rebate programs (NY-Sun) and a restructured export tariff (VDER) rather than a spot SREC market.

The practical result: don’t build your financial model around SREC income. Build it around the federal ITC, the state tax credit, VDER credits, and — if NY-Sun funds remain in your territory — a upfront rebate.

The Tax Credit Stack: Federal ITC and NY State Credit

The two tax credits form the backbone of Long Island solar economics.

Federal Investment Tax Credit (ITC): 30% of total installed system cost, claimed on IRS Form 5695. For a $28,000 residential system, that’s $8,400 off your federal tax bill. The credit carries forward if your liability in year one is less than $8,400 — you don’t lose the unused portion. Battery storage added to a solar system also qualifies for the full 30% ITC under current law.

NY State Solar Energy System Equipment Credit: 25% of installed cost, capped at $5,000, claimed on Form IT-255. It’s a direct credit against NY income tax — not a deduction. Like the federal credit, any unused amount carries forward up to five years. On a $28,000 system, you hit the $5,000 cap at a system cost of $20,000, so nearly every full residential installation maximizes this credit.

Combined, these two credits reduce a $28,000 system by $13,400 — a 48% reduction before any rebate is applied.

For the full picture of what stacks on top of these, see our Full incentives breakdown.

NYSERDA NY-Sun: Upfront Rebate (Check Current Availability)

NY-Sun is NYSERDA’s ongoing incentive program that pays a per-watt rebate to reduce the upfront installed cost before any tax credits are calculated. Rebate levels are tiered and decline as each territory’s MW block fills.

As of mid-2026, ConEd territory maintains an active rebate around $350 per kW (i.e., $2,450 on a 7 kW system). PSEG Long Island territory has largely exhausted its earlier incentive blocks; available funds are limited and should be confirmed with your installer before signing a contract. NYSERDA publishes current block status at nyserda.ny.gov — your installer should check this at the time of proposal.

When NY-Sun funds are available, the rebate is paid to the installer and passed to the homeowner as a reduction in contract price, which also reduces the base on which your tax credits are calculated. Even with exhausted PSEG-LI blocks, the federal and state tax credit stack still delivers strong economics.

VDER: How Long Island Actually Credits Excess Solar

Under PSEG-LI’s Value of Distributed Energy Resources (VDER) tariff, power you export to the grid earns credits against your bill — but the credit rate varies by time of day and season rather than matching your retail rate one-for-one.

The VDER Value Stack has several components:

Energy value: roughly $0.03–$0.06/kWh, tied to wholesale market prices
Capacity value: compensates for peak-demand reduction
Environmental value: reflects carbon market pricing
Locational value: varies by circuit congestion

Net, most Long Island homeowners see effective VDER credit rates in the $0.07–$0.20/kWh range, with higher rates during summer afternoons when grid demand peaks. Compare that to the retail rate you’d pay for electricity you consume directly from the grid — around $0.22–$0.26/kWh — and the financial case for self-consumption over export becomes clear.

Practical implication: size your system to cover your actual annual load, not to maximize export. Adding battery storage shifts more of your daytime production to evening consumption, which improves your effective payback by capturing avoided retail-rate energy rather than exporting it at the lower VDER rate.

System Sizing Under VDER: Why Right-Sizing Matters More Than It Used to

Under classic net metering, oversizing your system was relatively harmless — extra production rolled into a credit at the full retail rate. Under VDER, exports earn less than the retail rate, so oversizing works against you: you are producing kilowatt-hours that earn $0.07–$0.12 at off-peak VDER rates instead of displacing electricity you would have paid $0.22–$0.26 to buy.

The right target is to cover approximately 95–100% of your annual consumption, not to maximize production. For a Long Island home using 10,000 kWh per year, that means a system in the 7–8 kW range depending on shading and roof orientation. Your installer should be sizing against your 12-month utility usage history — pull that from MyPSEG before any contractor visit.

Adding battery storage is the most effective way to improve economics under VDER: it captures excess midday production and releases it in the evening when your household is consuming power, which means you are displacing retail-rate grid electricity rather than exporting at the lower VDER credit rate. The federal ITC applies to storage added alongside a solar installation, so the 30% credit covers battery equipment too.

For the full step-by-step on how interconnection, sizing, and permit filings work on Long Island, see our install process — it covers the PSEG-LI interconnection application, the Town of Huntington or Town of Smithtown building permit sequence, and what NYSERDA documentation is required to close out a NY-Sun rebate.

Optional: Selling NY RECs on National Voluntary Markets

NY homeowners who want to monetize the environmental attribute of their solar generation can register with NY-RETS and list RECs through national brokers like SRECTrade or Flett Exchange. Current voluntary market pricing for NY RECs runs $15–$40 per megawatt-hour.

A 7 kW system producing approximately 8,500 kWh per year generates 8.5 MWh annually — worth roughly $128–$340 at those prices. Over a 25-year system life that’s $3,200–$8,500 in cumulative REC income, which is real but secondary to your tax credit and VDER stack.

One caveat: selling a REC transfers the “renewable” attribute. If you sell all your RECs, your electricity is technically no longer certified green for purposes of any third-party claim. Most homeowners keep them for simplicity; larger systems (10 kW+) are more likely to make the registration paperwork worthwhile.

Putting It Together: Net Cost for a 7 kW Long Island System

Item	Amount
Gross installed cost	$28,000
Federal ITC (30%)	-$8,400
NY State tax credit (25%, cap $5,000)	-$5,000
Net cost after tax credits	$14,600
NY-Sun rebate (if available in territory)	varies — confirm
Annual VDER export credits (estimated)	$200–$600/yr
Annual avoided retail electricity cost	$1,400–$2,000/yr

Simple payback at these net figures typically runs 7–10 years for PSEG-LI customers, with a 25-year system life providing 15+ years of cost-free production.

For a detailed walkthrough of how these numbers apply to your specific roof, usage profile, and tax situation, review our Long Island install case studies or get a line-item proposal through our Residential solar installation page. Our install process also walks through how we handle incentive paperwork — NY-RETS registration, utility interconnection with PSEG-LI, and NYSERDA rebate coordination — so nothing falls through after your panels go up.

Frequently asked

Is there an SREC market in New York State?: No. New York does not operate a retail Solar Renewable Energy Credit (SREC) market the way New Jersey or Pennsylvania do. NY homeowners generate RECs (Renewable Energy Certificates) alongside their solar electricity, but those RECs are typically bundled with the energy and are not automatically tradeable on a separate spot market. National brokerage platforms such as SRECTrade and Flett Exchange do allow NY homeowners to register and sell their RECs independently, but NY REC prices are typically $15–$40 per MWh — a minor income stream compared to the state's primary incentive programs.
How are NY RECs priced, and is it worth selling them separately?: NY RECs trade in the $15–$40 per MWh range on voluntary markets, which works out to roughly $1.50–$4.00 for every 100 kWh your system produces. A 7 kW system on Long Island generating about 8,500 kWh per year would yield one 8.5 MWh REC bundle annually — worth $128–$340 at those prices. That's real money over a 25-year system life, but it's secondary to the VDER tariff and tax credits that form the core of your financial case. Registration on SRECTrade takes roughly 30 minutes and there's no upfront cost, so it's worth doing.
What is the VDER tariff, and how does it differ from net metering?: VDER stands for Value of Distributed Energy Resources. Under PSEG Long Island's VDER tariff, excess solar production earns credits based on a multi-component Value Stack rather than a simple one-for-one kilowatt- hour offset. Components include the energy value, capacity value, environmental value, and a locational component. The effective credit rate typically lands between $0.07 and $0.20 per kWh depending on when during the day and year you export. Classic net metering credited you at your full retail rate (around $0.22–$0.26/kWh for PSEG-LI residential customers); VDER credits are usually lower, which is why right-sizing your system to your actual load — rather than over- building — matters more under VDER.
Can a NY homeowner sell their RECs independently?: Yes, with some paperwork. You must register your system with NYSERDA's NY-RETS (Renewable Energy Tracking System) and then list your RECs through a broker such as SRECTrade or Flett Exchange. Your installer can provide the system documentation needed for registration. Note that once you sell a REC, you've transferred the environmental attribute — you can no longer claim your electricity is "renewable" for personal or marketing purposes. Most Long Island homeowners find the administrative overhead barely worth the $128–$340 per year, but for systems above 10 kW it becomes more compelling.
What is the total incentive stack for a 7 kW system on Long Island?: Starting from a typical installed cost of $28,000 for a 7 kW system: the federal Investment Tax Credit (ITC) at 30% takes off $8,400, leaving $19,600. The NY State tax credit covers 25% of the system cost, capped at $5,000, which removes another $5,000. Net cost after both tax credits is approximately $14,600. If you're in a NYSERDA NY-Sun eligible territory with remaining incentive funds, an additional rebate (historically $350/kW for ConEd territory; lower or exhausted for PSEG-LI territory as of 2026 — confirm current availability with your installer) could reduce cost further. Most Long Island homeowners land in the $14,600–$18,000 net range depending on rebate availability and tax liability.