What is the federal solar tax credit in 2026?

The federal Residential Clean Energy Credit covers 30% of the total cost of your solar system (panels, inverters, batteries, labor, sales tax) as a dollar-for-dollar credit against your federal tax bill. It is locked in at 30% through end of 2026 and steps down in 2033.

Does New York have its own solar tax credit?

Yes. New York State residential solar tax credit covers 25% of system cost, capped at $5,000, as a dollar-for-dollar credit against your NY State income tax. It stacks with the federal ITC. Unused credit carries forward up to 5 years.

What is the NYSERDA NY-Sun rebate?

NYSERDA NY-Sun pays a per-watt rebate that flows through your installer at point of sale. Current Long Island block (Block 12 as of mid-2026) pays roughly $0.20/W to $0.30/W. On an 8 kW system that is $1,600–$2,400 off the gross — no paperwork on your end.

Is solar exempt from sales tax in NY?

Yes. Residential solar electric systems are exempt from New York State sales tax. On a $26,000 install, that saves roughly $1,000 in sales tax versus a typical 4% local rate.

Are solar panels exempt from property tax in NY?

New York Real Property Tax Law section 487 provides a 15-year property tax exemption for the added home value from solar — meaning your assessment does not go up when you install solar. Town of Huntington follows this exemption. Some Suffolk County municipalities require a one-page filing; your installer typically handles it.

How do I claim solar tax credits?

Federal: file IRS Form 5695 with your tax return for the year the system is placed in service. New York State: file Form IT-255. Your installer provides the placed-in-service date and final cost letter. Most tax software handles both forms automatically.

2026 Solar Incentives · Long Island, NY

Every dollar Long Island homeowners can stack on solar.

A typical $26,000 install in Huntington gets nearly $15,000 in stacked incentives — bringing net out-of-pocket to roughly $11,000. Here is every credit, rebate, and exemption available in 2026, plus what we file on your behalf.

Get your install priced Call (631) 759-8716

1. Federal Investment Tax Credit (30%)

The federal Residential Clean Energy Credit covers 30% of total system cost — panels, inverters, batteries, labor, sales tax, the full installed cost. It is a dollar-for-dollar tax credit, not a deduction.

On a $26,000 install: $7,800 federal credit. Locked in at 30% through end of 2026. Filed via IRS Form 5695. Carries forward if you cannot use it all in one year.

2. New York State Solar Tax Credit (25%, capped at $5,000)

NY State stacks its own 25% credit on top of the federal credit. Capped at $5,000 — on a $26,000 install you get the full $5,000 state credit. Filed via NY Form IT-255 with your state tax return.

Unused state credit rolls forward up to 5 years. This credit applies to roof-mounted residential solar; commercial systems use a different credit structure.

3. NYSERDA NY-Sun Block Rebate

NYSERDA NY-Sun pays a per-watt incentive that flows through your installer as a point-of-sale discount. The Long Island region is currently in Block 12, paying roughly $0.20–$0.30/W.

On an 8 kW system: $1,600–$2,400 off the gross. Zero paperwork on your end — your installer claims it on your behalf at contract signing. Important: blocks fill, and once a block is full the per-watt rate drops. Locking in current block pricing is one reason not to delay if you are already getting quotes.

4. NY State Sales Tax Exemption

Residential solar electric systems are exempt from New York State sales tax under Tax Law section 1115(ee). On a $26,000 install, that saves roughly $1,040 versus a typical 4% local rate — applied automatically at the time of sale by your installer.

5. Property Tax Exemption (15 years)

NY Real Property Tax Law section 487 provides a 15-year exemption from the added home value attributable to solar. Translation: installing solar will not raise your property assessment (and therefore not raise your school + property taxes) for 15 years.

Town of Huntington follows the section 487 exemption. Some Suffolk County municipalities require a one-page filing — your installer typically handles it. Estimated savings: $500–$1,500/year in avoided property tax depending on your tax rate.

6. PSEG Long Island Net Metering

PSEG Long Island runs full retail net metering for residential solar customers — every kWh your panels push to the grid offsets one kWh of nighttime consumption at full retail rate. This is not technically an "incentive" but it is what makes solar economically viable on Long Island.

PSEG also runs a Value of Distributed Energy Resources (VDER) compensation framework — the newer tariff. Most residential solar in Suffolk County opts for the legacy retail net metering tariff which produces better payback in our experience.

7. Battery Storage Incentives

The federal 30% ITC also covers paired battery storage (Tesla Powerwall, Enphase IQ Battery) — including retrofits to existing solar systems. On a $14,000 Tesla Powerwall 3 install: $4,200 back via the federal credit.

NYSERDA also runs a residential battery incentive program (RBI) that adds roughly $200–$300/kWh on top — on a 13.5 kWh Powerwall that is up to $4,050 additional. Stack is real: a $14,000 battery can land at $6,000 net out-of-pocket.

Stacked example — 8 kW Huntington install, 2026

Gross install cost: $26,000.

- Federal 30% ITC: −$7,800.
- NY State 25% credit (capped): −$5,000.
- NYSERDA NY-Sun Block 12: −$2,000.
- NY sales tax exemption: −$1,040.
- 15-year property tax exemption: avoids ~$10,000 in property tax over the exemption period.

Net out-of-pocket: ~$11,200. At PSEG's mid-2026 effective rate (~$0.27/kWh delivered) and ~10,400 kWh/year production from the system, payback lands around year 4.

What we file for you

When you sign with us, the following are filed on your behalf at no additional cost:

NYSERDA NY-Sun block reservation + rebate claim
NY State sales tax exemption (applied automatically at contract)
NY State property tax exemption filing (where required by municipality)
PSEG Long Island interconnection application and net metering tariff selection
Town of Huntington Building Department + Suffolk County electrical permits
Final placed-in-service cost letter for your federal Form 5695 + state Form IT-255 filings

Frequently asked: 2026 Long Island solar incentives

What is the federal solar tax credit in 2026?: The federal Residential Clean Energy Credit covers 30% of the total cost of your solar system (panels, inverters, batteries, labor, sales tax) as a dollar-for-dollar credit against your federal tax bill. It is locked in at 30% through end of 2026 and steps down in 2033.
Does New York have its own solar tax credit?: Yes. New York State residential solar tax credit covers 25% of system cost, capped at $5,000, as a dollar-for-dollar credit against your NY State income tax. It stacks with the federal ITC. Unused credit carries forward up to 5 years.
What is the NYSERDA NY-Sun rebate?: NYSERDA NY-Sun pays a per-watt rebate that flows through your installer at point of sale. Current Long Island block (Block 12 as of mid-2026) pays roughly $0.20/W to $0.30/W. On an 8 kW system that is $1,600–$2,400 off the gross — no paperwork on your end.
Is solar exempt from sales tax in NY?: Yes. Residential solar electric systems are exempt from New York State sales tax. On a $26,000 install, that saves roughly $1,000 in sales tax versus a typical 4% local rate.
Are solar panels exempt from property tax in NY?: New York Real Property Tax Law section 487 provides a 15-year property tax exemption for the added home value from solar — meaning your assessment does not go up when you install solar. Town of Huntington follows this exemption. Some Suffolk County municipalities require a one-page filing; your installer typically handles it.
How do I claim solar tax credits?: Federal: file IRS Form 5695 with your tax return for the year the system is placed in service. New York State: file Form IT-255. Your installer provides the placed-in-service date and final cost letter. Most tax software handles both forms automatically.

Your specific incentive math

Get your exact stacked-incentive total.

Send us a recent LIPA bill and we will send back a numbered quote: gross install, every incentive applied line-by-line, net out-of-pocket, and your projected payback year.

Or call: (631) 759-8716