top of page

Incentives and Financing for Solar Projects

Home that went solar through 2015 Solarize CNY campaign

For residents and commercial businesses in New York State, a combination of Federal and State incentives and financing options are making solar PV deployment more affordable and easier than ever.



The solar Investment Tax Credit (ITC) has been the major federal policy mechanism to support the deployment of solar energy in the United States. The ITC began as a 30 percent tax credit for solar systems on residential and commercial properties.

A taxpayer could claim a credit of 30% of qualified expenditures for a system located in the United States through the end of 2019, after which the ITC stepped down to 26% in 2020, 2021. As of the passing of the Inflation Reduction Act, taxpayers can again claim a 30% tax credit through 2033, at which point it will step down to 26% and then to 22% in 2034. Expenditures with respect to the equipment are treated as made at the beginning of construction. Expenditures include labor costs for on-site preparation, assembly or original system installation, and for piping or wiring to interconnect a system. If the federal tax credit exceeds tax liability, the excess amount may be carried forward to the succeeding taxable year. The investment tax credit for solar has been tremendously successful in increasing deployment and lowering costs of solar energy.



NY-Sun provides financial incentives for installing a solar electric system through a NYSERDA participating contractor. A properly sized and installed system can provide a significant percentage of your electric needs. For more information on incentive levels, visit NY-Sun Incentive Program.


Incentives are distributed via an incentive structure that allocates MWs to specific regions and sectors of the State, which is known as a Megawatt Block Structure.


The Megawatt Block regions are:


  • Served by Con Edison

  • Served by PSEG Long Island

  • The balance of the State (Upstate)


The Megawatt Block sectors are defined as:


  • Residential systems (up to 25 kilowatts (kW) – based on the direct current (DC) nameplate rating)

  • Nonresidential systems (up to 200 kW)

  • Nonresidential systems (larger than 200 kW available in spring 2015)


Under the Megawatt Block incentive structure, each region and sector is assigned a series of MW targets at certain incentive levels, referred to as “blocks.” As applications are submitted, incentives are assigned and the kW associated with the applications are added together and the units are converted to MW. When the MW target for that block is reached, the block is closed and a new block with a new target and a lower incentive level is started. Once all of the blocks for a particular region and sector are filled, an incentive for that region and sector will no longer be offered. View real time available incentives by block on the Megawatt Dashboard.



On-Bill Recovery Loan

With the On-Bill Recovery Loan, your monthly payments may not exceed your estimated average monthly energy cost savings. Your loan payments are built right into your utility bill so you will not have an extra bill each month. Your energy savings essentially pay for your work.

  • Interest rates are subject to change and interest rate availability is subject to the customer’s credit qualification. For available residential interest rates, click on the Find Interest Rate button.

  • Loan payment is built into your utility bill

  • Loan amounts from $1,500 - $25,000 with loan term of 5, 10 or 15 years

  • Balance may be transferred to new owner when home is sold

  • A declaration is filed with the County Clerk to record the obligation of the loan (this is not a lien on the property)

  • You must own the home and be named on the utility account

  • The home must be served by a participating utility, including: Central Hudson Gas & Electric, Con Edison, PSEG-Long Island, NYSEG, National Grid (Upstate NY customers only), Orange & Rockland, and Rochester Gas & Electric

  • Electric customers of PSEG Long Island are eligible, but must apply directly through their utility

Smart Energy Loan

The Smart Energy Loan is a more traditional loan that you repay monthly via check or automatic payment.


  • Interest rates are subject to change and interest rate availability is subject to the customer’s credit qualification. For available residential interest rates, visit and click on the Find Interest Rate button.

  • Monthly payments made to NYSERDA’s loan servicer

  • Loan amounts from $1,500 - $25,000 with loan terms of 5, 10, or 15 years

  • If you sell or transfer the property, you remain responsible for the balance of the loan

  • You must own the home or be an authorized representative of the property owner

In all areas of New York State, Community Energy Advisors (CEAs) are making it easier for community members to participate in NYSERDA’s energy efficiency programs. CEAs are local, accessible advisors ready to help you make the most of what NYSERDA has to offer.


If you are interested in participating in a NYSERDA program but are unsure about the steps to follow, or you just want a little help getting started, you can contact your local CEA for assistance.



Energize NY Finance, also known as Property Assessed Clean Energy (PACE) financing, is a program adopted by an eligible local government that helps commercial properties make energy efficiency and renewable energy upgrades to buildings. Click here for more information about Energize NY PACE financing.

bottom of page