New York May Double the Solar Tax Credit to $10,000 — Here’s What Long Island Homeowners Need to Know

By Solar Pro Roofing | SolarProRoofing.net | 631-901-6144
If you’ve been on the fence about going solar on Long Island, there may never be a better time to pay attention to what’s happening in Albany right now. New York State legislators are actively pushing to double the residential solar tax credit from $5,000 to $10,000 — and if this bill passes, it could be one of the most significant boosts to solar savings for New York homeowners in years.
Here’s what the legislation actually says, where it stands, and why Long Island solar customers should be watching it closely.
Senate Bill S2626, introduced by State Senator Pete Harckham in January 2025, proposes to increase the maximum credit amount for the New York State Solar Energy System Equipment Credit from $5,000 to $10,000 for qualified solar equipment placed in service on or after January 1, 2026. The bill keeps the existing 25% calculation in place — meaning the credit equals 25% of your total solar installation cost — but raises the ceiling on how much you can actually collect. For homeowners installing larger systems, that difference is real money. A second provision in the bill would allow the credit to be issued as a refund for eligible taxpayers, meaning that if your tax liability is lower than the credit amount, you wouldn’t just carry it forward — you could receive the difference back. That’s a significant change from current law, which requires the credit to be carried over for up to five years if it exceeds what you owe in a given tax year.
It’s also worth noting that a separate but related bill, S1385, introduced by Senator Canzoneri-Fitzpatrick, goes even further — proposing to increase the calculation rate itself from 25% of expenditures to 40%, while also capping the credit at $10,000. That bill would additionally create a new Solar STAR credit program for homeowners in municipalities that opt to host midscale solar projects. Two bills moving in the same direction is a meaningful signal of where New York’s legislative energy is heading on residential solar.
Senator Harckham has made solar affordability a central focus of his 2026 legislative agenda, introducing a full package of solar-related bills alongside S2626. As he noted in a February 2026 press release, more than 1.3 million utility customers in New York were over two months behind on their electric and gas bills as of December 2025, totaling $1.8 billion in arrears. The push to expand solar incentives is tied directly to the broader affordability crisis hitting New York households — and Long Island homeowners, who pay some of the highest electricity rates in the country, are squarely in that conversation.
Now for the honest caveat: as of this writing, S2626 remains in the New York Senate Budget and Revenue Committee and has not yet been passed into law. The current New York State solar tax credit is still capped at $5,000, and the $10,000 figure is proposed, not enacted. This bill has predecessors — earlier versions were introduced in the 2021-2022 and 2023-2024 sessions and did not advance to passage. That said, the legislative momentum, the growing affordability pressure on New York households, and the state’s legal obligation under the Climate Leadership and Community Protection Act to achieve carbon-free electricity by 2040 all create a more urgent environment for this bill than its predecessors faced. It’s worth watching. And it’s worth acting before you know for sure, because the current $5,000 credit is still very much on the table right now for Long Island homeowners who go solar today.
At Solar Pro Roofing, we track every solar incentive and rate change affecting Long Island homeowners — from Albany legislation to PSEG billing structures — because your return on investment depends on the full picture. If you’re thinking about rooftop solar installation in Suffolk County or Nassau County and want to understand exactly what incentives apply to your home today, give us a call. We’ll give you the straight numbers, not a sales pitch.
Solar Pro Roofing
Long Island’s Trusted Solar Installation and Roofing Specialists — Suffolk and Nassau Counties
631-901-6144 | SolarProRoofing.net
Top Solar Contractor l #1 Solar Co on LI By Forbes