Commercial Solar in New York

New York commercial accounts served by Con Edison pay the highest utility rates in the continental US, with blended commercial rates regularly exceeding $0.25/kWh. Upstate utilities including National Grid and NYSEG offer lower rates but still well above the national commercial average. NYSERDA's NY-Sun Megawatt Block program provides upfront per-watt cash incentives for commercial solar installations, with incentive levels varying by utility territory and available block funding. Our NY EPC partners are active in the NYC metro, Long Island, Hudson Valley, and upstate markets including Buffalo, Rochester, and Albany.

New York Solar Incentives 2026

  • Federal ITC (30-50%): Base 30% plus energy community and domestic content adders for qualifying projects through Dec 31, 2027
  • NY-Sun Megawatt Block: Upfront per-watt incentives from NYSERDA based on utility territory and available capacity blocks
  • VDER Value Stack: Time-of-use compensation for excess solar generation replacing traditional net metering for systems over 25 kW
  • NYC Property Tax Abatement: 15-year property tax abatement equal to 30% of solar costs for NYC buildings
  • Sales Tax Exemption: New York exempts solar equipment from state and local sales tax
  • MACRS 5-Year Depreciation: Federal accelerated depreciation on ITC-adjusted basis
New York Value of Distributed Energy Resources VDER tariff replacing net metering for commercial solar

New York Commercial Solar Market

The NYC commercial solar market requires careful navigation of Con Edison's interconnection process, which has historically been slower than upstate utilities but has improved significantly for systems under 200 kW. Long Island PSEG customers often find the strongest economics given the combination of LIPA/PSEG-LI commercial rates and Long Island's interconnection framework. Upstate markets in the Buffalo-Rochester corridor and the Hudson Valley have been increasingly active for manufacturers and distribution centers with large roof footprints. The NYC Property Tax Abatement is particularly valuable — see the NYC Department of Finance at nyc.gov for current eligibility requirements.

New York Case Study

Hudson Valley Manufacturer Saves $110k Per Year With 650 kW Array

The Situation

A 95,000 sq ft precision parts manufacturer in Poughkeepsie was paying National Grid over $150,000 annually. Federal tax liability exceeded project cost — strong ESP model candidate.

Our Approach

NY EPC partner designed 650 kW rooftop system with VDER compensation modeling. Enrolled in NY-Sun Megawatt Block for $65,000 upfront incentive. National Grid interconnection completed in 88 days.

The Outcome

Annual savings of $110,000 + $12,000 VDER credits = $122,000 first-year benefit. 25-year projected savings exceed $3.5 million. NY-Sun incentive reduced effective project cost by $65,000 at commissioning.

Client name changed. Results vary. Prior results do not guarantee similar outcomes.

Frequently Asked Questions

What is the NY-Sun Megawatt Block program and is it still available?
The NY-Sun Megawatt Block program pays upfront per-watt incentives to commercial solar projects based on the utility territory and available capacity block. Incentive levels decrease as blocks fill. Current block availability and rates vary by Con Ed, National Grid, and NYSEG/NYSEG territories — NYSERDA updates these quarterly. Earlier applicants receive higher incentive rates, making prompt application important.
How does VDER compare to traditional net metering for commercial solar in New York?
New York replaced net metering with the Value of Distributed Energy Resources (VDER) tariff for new commercial systems over 25 kW. VDER compensates exported solar at a time-varying value stack (energy + capacity + environmental + locational values) rather than a flat retail rate. For facilities with high daytime self-consumption (70-90% typical for commercial businesses), VDER's impact on project economics is minimal since most solar production is consumed on-site.

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Nearby States

New Jersey, Connecticut, Massachusetts, Pennsylvania, and Vermont. View our full US service area.