New York Solar in 2026: VDER, NY-SUN & Whether It Still Pays
New York's solar math works differently thanks to the VDER value stack and NY-SUN. Here is what it means for your bill in 2026 — after the federal tax credit changes.
New York is one of the more confusing solar states because it does not use simple net metering like Florida. Instead, New York runs the VDER value stack — a compensation model that, once you understand it, can make solar pay off nicely. Here is the 2026 picture.
VDER: New York's "value stack"
Instead of crediting your exported solar at a flat retail rate, New York's Value of Distributed Energy Resources (VDER) credits it based on several components — energy value, capacity, environmental value, and more. The practical takeaway for a homeowner: your solar production is compensated, but the how is more nuanced than 1-to-1 net metering, and a good advisor models it against your specific utility (Con Edison, National Grid, NYSEG, etc.).
NY-SUN brings the upfront cost down
New York's NY-SUN program provides state-funded incentives that reduce the cost of going solar. These are separate from federal tax policy and remain a real lever in 2026 — one of the reasons New York stays a strong solar market even after the federal change below.
What changed federally in 2026
The 30% federal residential solar tax credit (Section 25D) expired December 31, 2025. No New York homeowner who owns their own system gets that credit in 2026 — cash, loan, or any other way of buying it yourself. The statute terminated it for expenditures made after December 31, 2025 (26 U.S.C. 25D(h), as amended by P.L. 119-21 §70506(a)), and the expenditure counts when the installation is completed, so paying in 2025 for a 2026 finish does not preserve it. But New York is better cushioned than most states because NY-SUN + VDER value remain. A $0-down lease or PPA does not get the federal credit back for you: the provider owns the system and is the taxpayer, so nothing goes on your tax return, and whether it qualifies on a residential roof is the provider's problem rather than a fact we assert. Any value it passes along reaches you only as the monthly payment — a price the provider sets, and whether it stays a saving depends on the escalator over the term.
High rates make the case
Con Edison and National Grid rates are among the highest in the country, and they keep climbing. Every kilowatt-hour you generate yourself is one you do not buy at those rates. Pair that with strong battery incentives for resilience, and the New York case holds up well in 2026.
Is solar worth it in New York in 2026?
For most New York homeowners with a $150+ monthly bill, a workable roof, and plans to stay: yes. The stack of NY-SUN incentives, VDER compensation, brutal utility rates, and battery value makes it work — and a $0-down lease lets you capture it without fronting cash or relying on the expired federal credit.
See your New York numbers
VDER and NY-SUN make New York worth modeling carefully. Get a free Solarfying quote or explore solar in New York and we will run your actual utility, VDER value, and $0-down options — no expired tax credit in the math.