The Federal ITC Is Gone — But Solar Still Works
The 30% federal Investment Tax Credit (ITC) for homeowner-purchased residential solar systems expired on December 31, 2025. For a $30,000 system, that was $9,000 back in your pocket. It's a real loss. But here's what most homeowners don't realize: New York State incentives were always doing the heavy lifting for Westchester County homeowners. The federal credit was a bonus. The core economics, driven by some of the highest electricity rates in the country, haven't changed.
What's Still Available in 2026
NY State 25% Tax Credit (up to $5,000) still applies to the full cost of your solar installation. NYSERDA Battery Storage Rebate at $250/kWh in Con Edison territory means approximately $3,375 back on a standard 13.5 kWh battery. The 15-Year Property Tax Exemption under NY RPT §487 keeps the added home value from solar exempt from property taxes. Sales tax exemption on solar equipment saves roughly 8% on hardware costs. And Net Metering / VDER credits through Con Edison still compensate you for excess energy your system produces.
What About Leases and PPAs?
If you're considering a solar lease or PPA, the installer (not you) owns the system. These third-party owners can still access the commercial Investment Tax Credit (Section 48E) through December 31, 2027, as long as construction begins by July 4, 2026. This means lease and PPA pricing may still reflect some federal credit benefit through mid-2026. After that window closes, expect third-party pricing to increase.
The Real Math: Before and After
For a typical 8 kW system in Scarsdale — In 2025 with the federal ITC: $30,000 system cost minus $9,000 federal credit minus $5,000 NY State credit equals $16,000 net cost, roughly 5.7-year payback at $2,800/year savings. In 2026 without the ITC: $30,000 minus $5,000 NY State credit equals $25,000 net cost, roughly 8.9-year payback. The payback is longer, but the system still pays for itself well within its 25-year warranty, then generates 15+ years of free electricity.
Why Waiting Costs More Than Acting
Con Edison rates have increased an average of 4-6% annually over the past decade. Every year you wait, your electricity costs go up, NYSERDA rebates continue to decline (standard-income MW Block incentives already closed in Con Edison territory as of March 2026), and equipment costs fluctuate with tariffs and supply chain conditions. The federal credit is gone, but the underlying math — high electricity rates, strong state incentives, and rising utility costs — still works in Westchester.
Get Your Numbers
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