NY Solar Credit Program: Clean Energy Savings Now Open for Homeowners

New York homeowners considering solar now have access to one of the most generous clean energy savings packages in the country, thanks to a major expansion of the state's signature NY-Sun program. On April 22, 2024, Governor Kathy Hochul announced that New York had been selected to receive nearly $250 million from the U.S. Environmental Protection Agency's Solar for All grant competition, funding a five-year push to bring rooftop and community solar to low- and moderate-income households.

Layered on top of New York's existing 25% state residential solar tax credit and the NY-Sun upfront incentive, the new federal dollars are expected to meaningfully reduce the cost of going solar for homeowners who have historically been left out of clean energy programs.

What Was Announced

New York was one of 60 applicants nationwide selected under the EPA's $7 billion Solar for All competition, a program funded through the Inflation Reduction Act's Greenhouse Gas Reduction Fund. NYSERDA is the lead recipient for New York State, working alongside New York State Homes and Community Renewal, the City of New York, and the NYC Department of Housing Preservation and Development.

The award expands the NY-Sun initiative, New York's $3.3 billion distributed solar program, by directing new funding toward:

• Residential rooftop solar for low- and moderate-income homeowners
• Community solar subscriptions for renters and households that cannot host panels
• Workforce development and contractor training
• Technical assistance for eligible households navigating the incentive process

"This critical funding will allow us to provide more low-income families with clean energy while supporting collaborative efforts to achieve a more reliable, equitable, zero-emissions electric grid," NYSERDA President and CEO Doreen M. Harris said in the announcement.

How the NY-Sun Program Works

NY-Sun is administered by the New York State Energy Research and Development Authority (NYSERDA). The program provides an upfront per-watt incentive paid directly to participating contractors, which shows up as a line-item discount on a homeowner's installation quote.

Incentive levels are set by region and are published through NYSERDA's Megawatt Block dashboards, which step down as each regional block fills up. Low-income households qualify for additional "adders" on top of the base incentive, and a Statewide Solar for All compensation schedule took effect for the December 1, 2024 through November 30, 2025 program year, adding $0.07 per watt for Upstate utility territories and $0.20 per watt in Con Edison territory.

The broader goal driving the program is New York's target of installing 10 gigawatts of distributed solar by 2030, up from the earlier 6 GW-by-2025 goal approved by the Public Service Commission in 2022.

The 25% State Solar Tax Credit

Separate from the NY-Sun rebate, New York offers one of the most valuable state-level solar tax credits in the country. Under New York Tax Law Section 606(g-1), homeowners who install a qualifying solar energy system at their primary residence can claim a personal income tax credit equal to 25% of the system's cost, capped at $5,000.

Key details homeowners should know:

• The credit applies to purchased systems and, in many cases, to leased systems and power purchase agreements of at least 10 years
• Any portion of the credit that exceeds the homeowner's tax liability in the year of installation can be carried forward for up to five years
• The credit is claimed on Form IT-255 with the New York State personal income tax return
• It stacks with the federal Residential Clean Energy Credit, which covers 30% of system costs with no cap through 2032

Who Qualifies

Any New York homeowner installing a qualifying solar PV system at their primary residence is generally eligible for the state tax credit and the base NY-Sun incentive. The Solar for All expansion specifically targets:

• Low-income households, typically defined as at or below 80% of Area Median Income
• Residents of disadvantaged communities identified under New York's Climate Leadership and Community Protection Act
• Affordable housing properties and their residents
• Renters served by community solar subscriptions

Homeowners can check their eligibility and find participating contractors through NYSERDA's NY-Sun website, which also hosts the current Megawatt Block incentive dashboards.

What Happens Next

NYSERDA and its coalition partners were expected to finalize award agreements with the EPA by summer 2024 and then design and implement Solar for All funded programs over a five-year period. The Statewide Solar for All compensation schedule already in effect through November 30, 2025 gives contractors and homeowners clear pricing signals in the meantime.

For homeowners, the practical takeaway is that the combination of the federal 30% tax credit, New York's 25% state tax credit (up to $5,000), the NY-Sun upfront rebate, and the new Solar for All adders for qualifying households can reduce the net cost of a residential solar installation dramatically compared to paying out of pocket.

How to Apply

Homeowners interested in taking advantage of these programs should:

1. Request quotes from NY-Sun participating contractors, who handle the rebate paperwork on the homeowner's behalf
2. Confirm which Megawatt Block and Solar for All adders apply in their utility territory
3. Ask the installer whether the household qualifies for low-income adders under Statewide Solar for All
4. Keep all invoices and system documentation for the state tax credit filing (Form IT-255) and the federal Residential Clean Energy Credit (Form 5695)

With state goals now set at 10 GW of distributed solar by 2030 and federal Solar for All dollars flowing into the NY-Sun pipeline, New York homeowners have a clear window to lock in incentive levels before regional Megawatt Blocks step down further.