New York · Tax exemption
NY Solar Sales Tax Exemption
Removes a tax burden residential solar owners in New York would otherwise carry -- see what it covers, eligibility, and payback impact below.
- State sales tax exem…
- stated benefit
- Residential
- eligible customers
- 11.1 yr
- New York baseline payback
- 4
- other New York programs
What it means
In New York, a 6 kW system already pays back in about 11.1 years on ~$1,696/year of modeled savings, and the NY Solar Sales Tax Exemption stacks on top of that, on top of any federal credit.
- State sales ta…
- stated benefit
- 11.1 yr
- baseline payback (pre-incentive)
- 5
- New York programs that stack
- full
- net-metering policy
Payback and savings are modeled from public NREL/EIA data; the program benefit is summarized from DSIRE and may change.
Program description
Solar energy equipment is exempt from New York state sales tax.
Program at a glance
- Program type
- Tax exemption
- Eligible customers
- Residential
- Stated benefit
- State sales tax exemption
- State electricity rate
- 22¢/kWh
- New York solar score
- 38/100
How New York compares to the U.S. average
Why this incentive matters more (or less) here - New York's solar fundamentals against the national average.
Source: NREL irradiance and U.S. EIA rates; payback modeled by PlainSolarData. Bars are scaled to the larger of the two values per metric.
Solar's trajectory in New York
The market this incentive operates in: total installed solar capacity in New York reported to the EIA.
New York's solar incentive stack
How this tax exemption sits among New York's 4 tracked programs, by type
- Tax exemption
Tax exemption
2 programs
- Net metering
Net metering
1 programs
- Rebate
Rebate
1 programs
What this shows New York tracks 3 incentive types; 2 are tax exemptions like this one, removing a cost solar owners would otherwise carry, on top of the state's other program types.
How this incentive fits New York's solar picture
The NY Solar Sales Tax Exemption removes a tax burden solar owners would otherwise carry, one of New York's DSIRE-tracked solar incentive programs. Eligibility is scoped to residential customers, with a stated benefit of State sales tax exemption. DSIRE lists no scheduled sunset, though enabling legislation and appropriations can still be revised year to year.
That baseline is slower than most states, which raises the stakes for every incentive on the table. New York averages 4.4 kWh/m²/day of usable sunlight and residential rates of 22¢/kWh, producing an estimated 7,709 kWh/year and $1,696 of annual utility offset on a typical 6 kW system costing $18,900. That baseline already implies a 11.1-year simple payback and a 25-year modeled net of roughly $23,500 before this incentive - every dollar this tax exemption delivers compresses that payback further.
A handful of other levers are worth checking alongside this one. New York has 5 solar incentive programs indexed in DSIRE, including adjacent options like NY Solar Property Tax Exemption, NY Net Metering, NY-Sun Megawatt Block Incentive. The state's net-metering policy is classified as full, which governs how excess generation is credited and often decides whether a given program is worth claiming for a specific household.
Your next step
- See New York's full solar profile, score, irradiance, rates, payback, and every program you can claim. New York solar data
- Run the savings calculator with your real bill to see how this incentive changes your own payback. ROI calculator
- Read how state and federal solar credits work together. Tax-credit guide
Estimates here are modeled from public data and are not financial advice; confirm program terms and your own eligibility before relying on a dollar figure.
Other New York incentives
Frequently asked questions
What is the NY Solar Sales Tax Exemption?
How does the NY Solar Sales Tax Exemption work?
Who is eligible for the NY Solar Sales Tax Exemption?
How does this incentive affect solar ROI in New York?
Are there other solar incentives in New York?
Incentive data from the DSIRE (Database of State Incentives for Renewables & Efficiency); state solar economics from NREL and the U.S. EIA. See our methodology.