Incentives
NY-Sun Program 2026: How New York's Solar Incentive Actually Works for Homeowners
NY-Sun is the New York State residential and small-commercial solar incentive run by the New York State Energy Research and Development Authority (NYSERDA). It launched in 2014 with $1 billion of committed funding and has been one of the main drivers of New York's residential solar growth ever since. Almost every legitimate residential solar quote in New York includes a NY-Sun line — and many homeowners do not know what it is.
This article explains how the NY-Sun Megawatt Block actually works in 2026: how the per-watt rate is determined, how the program is split by region, why the dollar-per-watt rate steps down as blocks fill, and the questions a homeowner should ask before treating any NY-Sun number on a proposal as final.
The key thing to understand up front: NY-Sun is not a check you receive in the mail. It is an installer-applied incentive. The participating contractor applies for the block on your behalf, and the dollar-per-watt rate is applied to the project. You will see it as a reduction line in your proposal, paid through the installer at the project level rather than as a homeowner cash rebate.
The numbers, with sources
NY-Sun
NYSERDA's residential and small-commercial solar incentive program, launched 2014.
NYSERDA — NY-Sun3 regions
NY-Sun residential incentive is split into three regions: Long Island (LIPA / PSEG LI), ConEd (NYC + Westchester), and Upstate (rest of New York).
NYSERDA — NY-Sun Dashboards and IncentivesMegawatt Block
Each region's incentive is structured as blocks of installed capacity at a fixed $/W rate. When a block fills, the next block opens at a lower rate.
NYSERDA — Megawatt Block Structure$1B+
New York committed over $1 billion to NY-Sun beginning in 2014. The program has been extended and expanded multiple times.
NYSERDA — NY-Sun Program HistoryInstaller path
NY-Sun flows through participating contractors. The homeowner does not apply directly — the installer applies for the block reservation and the incentive is applied to the project.
NYSERDA — Find a Participating Contractor
What NY-Sun is — and what it is not
NY-Sun is a state-administered, per-watt incentive program for residential and small-commercial solar installations. It is run by NYSERDA, the state energy authority. The dollar-per-watt rate flows through a participating installer at the time of project installation. The amount applied to your project is the rate in effect for your region and the active block when the installer reserves your block.
NY-Sun is not a tax credit. The federal credit (IRS section 25D) and the NY State credit (NY Tax Law 606(g-1)) are tax credits you claim on your tax returns. NY-Sun is a project-level incentive that reduces the cost basis the homeowner pays at the project itself. They stack — they are separate levers.
NY-Sun is also not a homeowner direct application. You cannot mail in a NY-Sun rebate form yourself. The participating contractor (the installer) does it for you. Choosing a NYSERDA-participating contractor is a prerequisite to getting NY-Sun on your project.
The three NY-Sun regions
New York's residential and small-commercial NY-Sun incentive is split into three geographic regions, each with its own Megawatt Block schedule. Your region is determined by where your home is located.
| Region | Coverage | Typical utility | Project context |
|---|---|---|---|
| Long Island (LIPA / PSEG LI) | Nassau County and Suffolk County | PSEG Long Island | Pitched shingle roofs common; PSEG net metering tariff |
| ConEd | NYC five boroughs and Westchester County | Con Edison | NYC: flat / low-slope often; NYC SEGS abatement applies. Westchester: pitched shingle, RPTL 487 path. |
| Upstate | Rest of New York — Hudson Valley, Capital, Central, Western NY | Central Hudson, NYSEG, Orange & Rockland, National Grid, others | Mixed roof types; longer winters; RPTL 487 path. |
How the Megawatt Block works
The Megawatt Block is a step-down incentive structure. Within each region, NYSERDA defines a series of blocks. Each block is a fixed amount of installed solar capacity (in megawatts) at a fixed dollar-per-watt incentive rate. As participating installers reserve blocks for projects, the block fills. When a block is full, the next block opens — typically at a lower dollar-per-watt rate.
The reason this matters: the rate quoted in a proposal is the rate in effect when the installer files the block reservation. If your project sits without action for months and the block fills before the installer files, the rate that ultimately applies may be lower. Reputable installers reserve blocks promptly and tell homeowners which block their project is reserved against.
Block status is published on the NYSERDA dashboard. Each region's current and recent block rates and the percentage of the current block already filled are visible. That is how you verify what an installer told you about your project block.
What NY-Sun looks like on a real residential proposal
On a typical residential proposal, NY-Sun appears as a project-level credit line that reduces the gross cost the homeowner is responsible for. It is not a separate cash payment to the homeowner. The installer files the block reservation, the system is installed and inspected, and the incentive flows through the project economics.
A clear proposal will show: the system size in DC watts (the basis for the per-watt incentive), the NY-Sun region the project is in, the current block the project is reserved against, the dollar-per-watt rate of that block, and the resulting NY-Sun amount applied to the project. If any of those line items are missing, ask.
| Proposal field | What to verify | Why it matters |
|---|---|---|
| System size (kW DC) | Matches the equipment list and modeled production | Per-watt incentive is calculated on system DC size |
| NY-Sun region | LIPA, ConEd, or Upstate | Each region has its own block schedule and rate |
| Block reserved | Current block name or number | Tells you the rate that was locked in for your project |
| Block $/W rate | Cross-check against NYSERDA dashboard | Block rates change as blocks fill |
| NY-Sun project amount | kW DC × $/W rate | This is the dollar amount applied to the project |
| Participating contractor status | Confirm installer is listed as participating | Required for NY-Sun eligibility |
How NY-Sun stacks with federal, state, and NYC incentives
NY-Sun is one of five potential levers a New York homeowner can stack on a 2026 residential solar project. The general framework:
- NY-Sun (NYSERDA) — installer-applied per-watt incentive at the project level.
- Federal Residential Clean Energy Credit (IRC 25D) — tax credit on qualified expenditures, filed on IRS Form 5695 with your federal return. Confirm percentage and rules with a CPA against the IRS Form 5695 instructions for your placed-in-service year.
- NY State Solar Energy System Equipment Credit (NY Tax Law 606(g-1)) — 25% of qualified expenditures on your primary residence, capped at $5,000, filed on NY Form IT-255.
- NYC SEGS abatement (boroughs only, NYC Admin Code 11-2902) — 30% of eligible expenditures over four years, applied through NYC property tax.
- RPTL section 487 — 15-year property tax exemption on added assessed value of solar equipment (most of NY State; verify your jurisdiction has not opted out).
Eligibility, system size, and homeowner-side requirements
NY-Sun residential eligibility centers on residential rooftop or ground-mount solar systems sized appropriately for the home's usage, installed by a participating contractor, and meeting NYSERDA's program rules. There are size limits, equipment requirements, and documentation requirements that the participating contractor handles.
On the homeowner side, the practical requirements are simple: you are the property owner, the property is in NY State, you sign a contract with a participating contractor, and you give the contractor what they need to file the block reservation and process the project.
Income-qualified pathways within NY-Sun (such as the Affordable Solar component) exist for households below certain income thresholds and can change the incentive math. Ask the participating contractor whether your household may qualify for any income-qualified pathway.
Energy storage and NY-Sun
NY-Sun has historically had a related energy storage incentive component. As of 2026, battery storage incentives for residential and small commercial in New York continue to evolve, with separate programs and rules. The exact storage incentive available for your project depends on region, timing, and equipment.
EnergiSense offers battery storage on Long Island and Westchester / Hudson Valley projects. For NYC borough projects, we do not currently bundle battery storage in our installations.
Questions to ask before signing any NY-Sun proposal
- Are you a NYSERDA-participating contractor in good standing?
- Which NY-Sun region is my project in?
- Which Megawatt Block do you intend to reserve for my project?
- What is the current dollar-per-watt rate in that block?
- What happens if the block fills before you file my reservation?
- How is the NY-Sun amount shown on my proposal, and how does it reduce my gross cost?
- Does the NY-Sun amount affect the basis used for the federal or state tax credit?
- Is any income-qualified pathway available for my household?
FAQs
What is NY-Sun?
NY-Sun is the New York State residential and small-commercial solar incentive program administered by NYSERDA. It pays a per-watt incentive on installed solar capacity, banded by region (Long Island, ConEd / NYC + Westchester, and Upstate) and by Megawatt Block. The incentive flows through a NYSERDA-participating installer at the project level — it is not a homeowner direct application or a cash check.
How much is the NY-Sun incentive per watt?
The dollar-per-watt rate depends on your region and the active Megawatt Block when your installer reserves your project. Block rates step down as each block fills. Rates change over time. The authoritative source is the NYSERDA NY-Sun dashboard, which shows current rates and block fill status by region. Your installer should name the specific block and rate locked in for your project.
Do I apply for NY-Sun myself?
No. NY-Sun flows through a NYSERDA-participating contractor. The contractor applies for your block reservation, files the program paperwork, and the incentive is applied at the project level. If you work with a non-participating installer, NY-Sun is not available on your project. Choosing a participating contractor is a prerequisite.
Can I stack NY-Sun with the federal solar tax credit?
Yes. NY-Sun and the federal Residential Clean Energy Credit (IRC section 25D) are separate levers. NY-Sun reduces the project cost at the installer level. The federal credit is a tax credit on qualified expenditures filed on IRS Form 5695. How NY-Sun affects the basis used to compute the federal credit is a CPA question — confirm with your tax professional.
Does NY-Sun apply in NYC?
Yes. NYC projects fall under the ConEd region of NY-Sun. The NY-Sun incentive applies in addition to the NYC SEGS property tax abatement (NYC Admin Code 11-2902). Both apply to borough residential solar projects with eligible installers.
What is the difference between the LIPA, ConEd, and Upstate regions?
NY-Sun is split into three regions to reflect different utility territories, market conditions, and program funding. Long Island is the LIPA / PSEG LI region. ConEd is the NYC five boroughs plus Westchester County. Upstate is everything else in New York State, including the Hudson Valley. Each region has its own Megawatt Block schedule and rate.
Does NY-Sun include battery storage?
New York's residential and small-commercial battery storage incentives evolve over time and are administered alongside NY-Sun. The specific storage incentive available depends on region, timing, equipment, and current program rules. EnergiSense offers battery storage on Long Island and Westchester / Hudson Valley projects, and we discuss any current storage incentives during the proposal.
Will NY-Sun still be available when my project installs?
NY-Sun has been extended and expanded multiple times since 2014. Continued program availability depends on NYSERDA funding and program decisions. The dollar-per-watt rate that applies to your project is the rate in the block when your participating contractor files your reservation, so reservation timing matters.
About the author
Alex Lubin
Founder, EnergiSense — NYSERDA-participating contractor
- NABCEP PV Installation Professional
- GAF Master Elite (top 2% of US roofers)
- NYSERDA participating contractor
EnergiSense is a NYSERDA-participating contractor, which means we apply for the NY-Sun Megawatt Block incentive on behalf of our customers. I wrote this article so homeowners walk into any NY solar quote knowing which block, which region, and how the rate is supposed to flow.
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