All of New York · Tax exemption
Sales Tax Exemption for Residential Solar Energy Systems Equipment
Run by New York State Department of Taxation and Finance
Buying and installing solar equipment for a New York home is exempt from the 4% state sales tax and the 3/8% MCTD tax; local sales tax is exempt only where the county or city has adopted the exemption.
Amounts
How much you get
No state sales tax: the sale and installation are exempt from the 4% New York State sales and use tax and the 3/8% Metropolitan Commuter Transportation District tax. Local sales tax may also be exempt, depending on your county or city (Publication 718-S lists local rates on these sales).
Eligibility
Do I qualify?
You need to meet all 3 of these.
Your home is in New York.
The equipment must be installed in a residence, owned or rented - a single-family house, a building made up only of homes, or an apartment, co-op or condo unit. Commercial installations don't qualify.
Equipment that is part of a non-solar system (pipes, controls, insulation or other parts of a conventional heating or cooling system) or that uses a pool or hot tub as storage doesn't qualify.
Equipment
What equipment counts
Applying
How to apply
Follow these steps.
- Give your seller or installer Form ST-121, Exempt Use Certificate.
Mark box U (Other) and describe the use as residential solar energy systems equipment exempt under section 1115(ee) of the Tax Law. Contractors buying the equipment use Form ST-120.1 instead.
Stacking
Use it with
You can get these too.
All of New York
NY-Sun Residential Solar Incentive
Up to $0.8 back
NY-Sun pays an upfront per-watt incentive through your solar contractor for home solar up to 25 kW. Households under 80% of area median income get the Affordable Solar incentive of $0.80/W (Upstate and Con Edison areas) or $0.40/W (Long Island); the standard incentive remains only in a few upstate utility areas.
Checked Oct 26, 2026
All of New York
Solar Energy System Equipment Credit
Amount varies
New York homeowners and renters who buy, lease or sign a 10-year-plus power purchase agreement for solar equipment at their principal residence can claim a state income tax credit of 25% of the equipment cost, up to $5,000, with unused credit carried forward five years.
Checked Oct 26, 2026
All of New York
Real Property Tax Exemption for Solar, Wind, Energy Storage and Certain Other Energy Systems (RPTL 487)
Amount varies
New York homeowners who add solar panels, a wind system, battery storage or certain other energy systems can have the added assessed value exempted from property taxes for 15 years by filing Form RP-487 with the local assessor, unless their town, city, county, village or school district has opted out.
Checked Oct 26, 2026
Your address
Next steps
Check that it covers your address. Then, if you want, ask for a contractor quote.
Is it available at your address?
Before anything else
Your quote request is in If a contractor we work with serves your ZIP, they can contact you. We take one request per person; contact us to change it.
Get an email if this program changes
We'll write if its amount, status or deadline changes. Nothing else.
FAQ
Questions
How much does Sales Tax Exemption for Residential Solar Energy Systems Equipment pay?
No state sales tax: the sale and installation are exempt from the 4% New York State sales and use tax and the 3/8% Metropolitan Commuter Transportation District tax. Local sales tax may also be exempt, depending on your county or city (Publication 718-S lists local rates on these sales).
Can I combine it with other rebates?
Yes, with NY-Sun Residential Solar Incentive, Solar Energy System Equipment Credit and Real Property Tax Exemption for Solar, Wind, Energy Storage and Certain Other Energy Systems (RPTL 487). See Use it with.
Is it still available?
Yes. It was open when we last checked, on October 26, 2026.
Plain words
Words used on this page
References
Sources
This page is built from these official pages, run by the program itself.
When one of these pages changes, we re-check this page against it.
Nearby
More in New York
All of New York
On-Bill Recovery Loan
Amount varies
NYSERDA loans of $1,500 to $25,000 for solar panels, heat pumps and energy efficiency work on one- to four-family New York homes, repaid through your utility bill over 5, 10 or 15 years, with a balance that can pass to the next owner.
Checked Oct 26, 2026
All of New York
Residential Energy Storage Incentive
Amount varies
NYSERDA pays a per-kWh incentive, through a participating contractor, for a home battery up to 25 kWh, standalone or paired with solar. A higher Inclusive Storage Incentive is available in disadvantaged communities and for households under 80% of median income.
Checked Oct 26, 2026
All of New York
Sales Tax Exemption for Residential Energy Storage Systems Equipment
Amount varies
From June 1, 2024 through May 31, 2028, buying and installing a home battery (residential energy storage system) in New York is exempt from state and local sales and use tax.
Checked Oct 26, 2026