The 2026 Incentive Landscape
New York continues to be one of the best states for residential solar thanks to a layered state incentive structure. In 2026, Westchester homeowners can access multiple programs that, when combined, can reduce total system cost by 20-30%. Understanding how these stack together is the difference between a good deal and a great one. Important note: the federal 30% residential ITC (Section 25D) expired December 31, 2025, so the economics now rest entirely on state and local incentives.
Federal ITC: What Happened
The federal 30% residential solar Investment Tax Credit was eliminated as part of the "One Big Beautiful Bill" signed July 4, 2025. As of January 1, 2026, homeowners who purchase solar systems can no longer claim a federal tax credit. However, third-party owned systems (leases and PPAs) may still access commercial credits under Section 48E through December 31, 2027, provided construction begins by July 4, 2026. For homeowners buying their system outright, state incentives are now the primary cost reducers. For a deeper look at the math, see how solar still works without the 30% credit.
NY State 25% Solar Tax Credit
New York offers a state-level tax credit worth 25% of your solar system cost, capped at $5,000. This is the largest single incentive available to homeowner-purchased systems in 2026. For most Westchester installations, you'll hit the $5,000 cap since systems typically cost $20,000+. Important: this is a tax credit, not a rebate. You need sufficient NY State tax liability to claim it. If your tax liability is less than $5,000 in the year you install, the remaining credit carries forward for up to 5 years.
NYSERDA NY-Sun Incentive
NYSERDA's NY-Sun program provides an upfront incentive paid directly to your installer, which reduces your out-of-pocket cost. The incentive rate varies by utility territory and block. Important update for 2026: standard-income MW Block incentives have closed in the Con Edison and Upstate territories as of March 2026. Currently, only low-income households (at or below 80% AMI) are eligible for NY-Sun solar rebates in those territories. If you are income-eligible, the per-watt incentive can still meaningfully reduce system costs. Check with your installer or NYSERDA directly to confirm current availability.
How the Incentives Stack in 2026
Here's a real example for a Westchester homeowner installing a 10 kW solar system at $32,000: The NY State 25% credit provides $5,000 (capped). A 15-year property tax exemption prevents your assessment from increasing due to the solar installation. Sales tax exemption saves roughly $2,500 on equipment costs. Net cost to homeowner: approximately $24,500 for a system that generates $4,000+ in annual electricity savings. That's roughly a 6-year payback period. Without the federal ITC, payback takes longer than it did in 2024-2025, but the economics remain strong given Westchester's high electricity rates.
Battery Storage Incentives
NYSERDA offers a standalone battery storage rebate of $250/kWh in Con Edison territory. For a standard 13.5 kWh battery like the Tesla Powerwall, that's approximately $3,375 off the purchase price. This rebate is currently active and does not require pairing with a new solar installation. Battery storage also unlocks TOU Rate III savings and provides backup power during outages, which Westchester has experienced more frequently in recent years. Note: batteries no longer qualify for a federal tax credit under the expired residential ITC.
Additional Tax Benefits
Two often-overlooked incentives round out the package. The 15-year property tax exemption (RPT Section 487) ensures your property taxes won't increase due to added home value from solar. And New York's sales tax exemption on solar equipment eliminates state and local sales tax on your system purchase. Together, these provide meaningful savings that are easy to miss if you're only looking at upfront rebates and credits.
Check Your Specific Numbers
Every home is different. Your roof size, energy usage, shading, and tax situation all affect the final economics. Upload your utility bill to our free analyzer and we'll calculate your specific incentive package, estimated savings, and payback period. No commitment, no sales pitch, just the numbers.
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