Introduction
You’re not alone if you’ve been thinking about installing solar panels on your house. There are several compelling reasons why American homeowners are switching to solar power. Solar panels provide a number of advantages, including lowering your carbon footprint and lowering your energy costs. In 2025, the federal government began campaigning for cleaner and renewable energy. In particular, New York state developed the New York Megawatt Block Incentive Program. If you are from New York or planning or plan to move there in the near future, you’ll want our breakdown here!
What is the New York Megawatt Block Incentive Program?
The New York Megawatt Block Incentive Program is designed to encourage the development of large-scale renewable energy projects. In addition, it incentives homeowners to go solar as well. The state’s New York Sun project is a program created by the New York State Energy Research and Development Authority (NYSERDA). It works to increase access to renewable energy for New Yorkers. One of their initiatives included the Megawatt Block Incentive. Their ultimate goal is to install 6 GW of solar PV capacity in New York state by 2025. Along with offering incentives, New York Sun also aids in other ways. They assist with project finance, education, and grants local governments resources to assist them to meet initiative objectives.
New York’s Megawatt Block incentive at a Glance:
New York state offers homeowners incentives for installing solar panels based on where they live. It also takes into consideration the amount of solar panels they have installed.
For those not familiar with the area, the New York region is split into many different areas. In the past, the program had three different regions they serviced to. However, more recently, they’ve cut it down to two regions. The two regions each receive a different amount of funding for the Megawatt Block Incentives. The regions are:
- Con Edison
- Upstate
The amount the incentive provides generally amounts to about $1,000 to $3,000 dollars. But keep in mind that depending on the size of your system and the area you are in, you may earn a different amount for the incentive.
For example, those living in Con Edison’s territory can receive an incentive rate of $0.20 per watt of solar installed. On a property containing a 7 kW watt solar system, that amounts to $1,400 dollars.
Those in the Upstate region that have a 7 kW system can expect to be eligible for $0.40 per watt which amounts to $2,800 dollars.
How to Qualify for the Incentive Program?
New York Megawatt Block Incentive and how to qualify?
The New York Megawatt Block Incentive is a program that provides an incentive for eligible customers to install energy storage systems on their property. To qualify, customers must meet the following criteria:
1. The solar panel system must be installed by a participating NY-Sun contractor
2. The system cannot exceed 25 kilowatts (kW) in size
3. The system must be connected to the customer’s existing electrical grid.
4. The system also cannot be projected to generate more than 110% of your annual electricity usage, but this will be something your installer will consider when designing the system.
Bottom Line: Is it Worth it?
New York is one of the greatest states to go solar despite receiving less sunshine than other regions of the U.S. because of all the fantastic incentive programs, particularly the Megawatt Block program. In as little as five years, many solar panel installations in New York will pay for themselves! However, it doesn’t follow that it will always be that way just because it is today. In order to reduce potential power cost savings, New York is trying to tweak how it bills solar consumers. Both the Con Edison and Upstate Megawatt Block areas are nearing the end of their useful lives, therefore their expiry dates could be approaching soon.
In addition to the New York Megawatt Block Incentive, New Yorkers can also take advantage of the state solar tax credit. This is called the NY State Solar Energy System Equipment Tax Credit. The credit is worth 25% and is available for purchased home solar systems in New York. In addition, New York state also offers something called the Inflation Reduction Act (IRA). This gives qualified homeowners with home solar eligibility for a tax credit of up to 30% against the cost of the system.
Compared to the national average, the power prices in the New York are more than 48% higher than any other state in the country. Aside from being better for the environment, it is an economically friendly choice to go solar when living in New York state.
Resources
These days, there are so many resources available to help you understand everything you need to know about solar panels and how to claim them during tax season.
First and foremost, the most reliable source of information regarding anything related to tax credit would be the Internal Revenue Service. Check out their site here: www.irs.gov.
For the most up to date information regarding solar tax credits and incentives for the state of New York, visit www.tax.ny.gov