NYC Solar Incentives 2026: What’s Open Right Now

If you own a home in New York City, solar incentives can cover a big share of the cost of your system. On a typical home we install, incentives pay for more than 80% of the price. The catch is that each incentive has its own rules, and some homeowners lose money because they misunderstand them or their installer doesn't finish the job.

Here's what's available in 2026, who qualifies and the mistakes we see most often. For a quick overview of every program, see our New York City solar incentives page.

The Incentive Our NYC Customers Use Most

The NYC Property Tax Abatement

The incentive our customers use most is the NYC solar property tax abatement. The reason is simple. Not everyone has enough taxable income to use a tax credit, but every homeowner pays property taxes. That puts the abatement within reach for almost everyone.

The Catch: Your Project Has to Be Fully Closed Out

Here's what many homeowners don't know. The abatement doesn't start until your project is completely closed out with the NYC Department of Buildings.

Many installers stop once the electrical inspection passes and Con Edison grants Permission to Operate (PTO). Your panels are running at that point, so the work looks finished. For the abatement, it isn't. The engineer of record still has to confirm the system was built according to the approved plans, and the Department of Buildings has to sign off.

If your installer skips that last step, your abatement can be delayed or put at risk. Before you sign a contract, ask any installer whether they handle the full DOB closeout or stop at PTO.

What Homeowners Most Often Get Wrong

Tax Credits Only Help If You Have Taxable Income

The most common misunderstanding we hear is about tax credits. A tax credit lowers the income tax you owe. If you don't owe much income tax, perhaps because you're retired or your income is low, the credit can't do much for you.

A Credit Is Dollar for Dollar

A tax credit is not a depreciation benefit or a deduction. It's a dollar-for-dollar cut in the tax you owe. A $5,000 credit takes $5,000 off your tax bill. That's why it's worth so much to homeowners who can use it, and why you need to know your tax situation before counting on it.

What Changed With the Federal Solar Tax Credit

Homeowners Can No Longer Claim It Directly

The biggest change for 2026 is the federal solar tax credit. Homeowners can no longer claim it on their own tax returns when they buy a system.

How You Can Still Get the Benefit: A Prepaid Lease

You can still get the value of the federal credit through a prepaid lease. Here's how it works:

• A third-party company owns a portfolio of home solar systems as a commercial business.
• Because it's a commercial owner, that company can claim the federal tax credit.
• It passes the savings on to you through the price of your prepaid lease.
• The company has to hold the system for five years.
• After five years, ownership of the system transfers to you.

You still get the system on your roof and the benefit of the credit, just through a different structure. When customers ask us about the federal credit now, this is how we explain it.

Who Handles the Paperwork

Solar incentives come with a lot of paperwork, including NYSERDA applications and the property tax abatement filing. At Rivertown Solar & Roofing, we handle all of it. Our customers don't fill out incentive forms, track deadlines or chase approvals. That includes the full Department of Buildings closeout the abatement depends on.

A Real Example: What Incentives Take Off a Typical NYC Home

Here's how the numbers work on a typical system:

• System cost: $30,000
• Federal credit (through a prepaid lease) plus the NYC property tax abatement: about $20,000 off
• New York State solar tax credit: another $5,000 off
• Total incentives: about $25,000, or more than 80% of the system cost

Every home is different. Your numbers will depend on your system size, your tax situation and how your project is structured. Still, this shows why so many NYC homeowners find solar worth it when incentives are used correctly.

How to Make Sure You Get Every Incentive You Qualify For

• Know your tax situation before you count on a tax credit.
• Ask whether a prepaid lease is the best way for you to get the federal credit's value.
• Confirm your installer completes the full DOB closeout, not just PTO.
• Choose an installer who files all incentive paperwork for you.

If you want to see what incentives you qualify for, contact Rivertown Solar & Roofing for a free assessment. Learn more about our residential solar installation services. We'll go through the numbers for your home and handle the rest.