Paying for Solar

While on-site solar delivers low-cost power and energy bill savings, there are upfront installation costs to plan for. Use incentives, tax credits, and low-interest financing to make your solar project more affordable.

Step 1: Work With Your Contractor to Get Incentives

NY-Sun will give you an incentive through your contractor to lower your solar project’s price tag. In most cases, your contractor will take the incentive amount “right off the top” of your bill, so you won’t have to pay the full price upfront or worry about applying for a rebate later. The incentive amount a solar contractor receives through NY-Sun must be disclosed in the customer contract.

The exact incentive amount depends on project size and location. Incentives are structured to phase out over time as more New Yorkers install solar, and the market becomes more robust. Work with a NY-Sun contractor to find out what incentives are available to you.

Income-Eligible New Yorkers Can Get Additional Solar Incentives

Households earning less than 80 percent of the median income in their area may qualify for additional incentives through Affordable Solar. Affordable Solar works just like other NY-Sun incentives, except it requires you to make additional low-cost energy upgrades to your home along with your solar installation. Support is available through EmPower+ to integrate these minor energy upgrades in your home, helping you save even more money on your bills.

To qualify, you will need to complete an Incentive Eligibility Application . You can fill out and submit the application on your own, or work with your contractor.

Step 2: Explore Loans as Needed

Low-interest financing can help you pay for solar even if you don’t have the budget for the project upfront. NYSERDA offers low-interest loans through our lending partner, Energy Finance Solutions. In some cases, the amount of money you save on your monthly electric bill can be enough to pay for your loan.

• On-Bill Recovery Loans make it simpler to pay for solar by adding your loan payment to your monthly electric bill.
• Smart Energy Loans have traditional monthly payments that are separate from your electric bill.

View Loan Options

If you do not qualify for traditional financing, these loan products can also help you get lower interest rates for a solar project. Use our interest rate estimator to find out the rate you may qualify for. Rates are subject to change and require a credit review.

Alternatively, homeowners can pay for a solar project with home equity financing or a personal loan. Home equity financing can offer competitive interest rates and the option to deduct interest on your taxes, but keep in mind that you need to use your home as collateral to secure the loan. Personal loans may come with shorter repayment terms and fast funding, but they typically carry higher interest rates and origination fees.

For additional information about financing for your solar project, download the New York Homeowner’s Guide to Solar Financing [PDF]. You can also speak to a clean energy financing expert at 1-800-361-5663.

Step 3: File for Tax Credits

In addition to incentives and low-interest financing to help you pay for solar, there are additional tax credits available for homeowners that install solar through New York State and the Inflation Reduction Act.

You can put money back in your pocket with the following federal and/or New York State tax credits once your project is complete.

• Inflation Reduction Act Tax Credit - New York residents may be eligible for a tax credit from the federal government through the Inflation Reduction Act. These tax credits can cover up to 30% of your solar project cost. See the Department of Energy’s Homeowner’s Guide to the Federal Tax Credit for Solar Photovoltaics for information on the federal investment tax credit for residential solar, how to claim it, and answers to frequently asked questions. The Internal Revenue Service (IRS) also has information about the federal tax credit available online .
• 25% New York State Tax Credit - For you to claim the New York State personal tax credit, the solar panels must be installed at your personal residence.
• New York State Real Property Tax Exemption [PDF] - Sometimes installing solar can increase the property value of your home. You can apply to have that increased value exempt from your property taxes, so you won’t have to pay higher property taxes as a result of installing solar. File this form with your local property assessor for the exemption. Note: Some local governments have opted out and will still include the value of the solar installation in your property taxes.
• New York City Real Property Tax Abatement Program - If you live in New York City, ask your contractor about the New York City Real Property Abatement Program, which New York City offers instead of the New York State Real Property Tax Exemption (see above). Be sure to ask about your contractor’s process for submitting and handling the appropriate forms — some contractors may do it for you.

NYSERDA encourages homeowners to work with an accountant or tax advisor to answer any questions about your particular tax credit qualifications.