Solar Incentives
Exploring state and federal incentives is crucial for businesses planning to install solar power, as these can significantly reduce installation costs. Additionally, these incentives improve return on investment (ROI), making the switch to solar energy more financially attractive.
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Important Updates to Commercial Solar incentives
To maximize your return on investment, it is critical to note that the federal 30% Investment Tax Credit (ITC) for commercial solar is currently scheduled to expire on December 31, 2027. Under recent legislative updates, businesses must have their systems fully operational and “placed in service” by this year-end deadline to claim the full credit.
At National Solar Technologies, we’ve been helping businesses like yours get the most out of Solar Power improvements for more than 25 years. Let one of our solar experts help you navigate local and federal incentives. We may also be able to help guide you toward specialized grants that your business may qualify for.
COMMERCIAL SOLAR Incentives & Grants
Federal Solar Investment Tax Credit (ITC)
This incentive is phasing out quickly!
The Federal Solar Investment Tax Credit (ITC) offers a significant financial incentive for your business to invest in solar energy systems. This is a 30% tax credit. For example if your system costs $100,000 you will get a $30,000 Federal tax credit. This promotes sustainable business practices and will reduce energy costs.
- Businesses will receive a 30% tax credit.
- The 30% ITC applies to both commercial and industrial solar projects.
- The ITC was increased to 30% through 2032.
- There are bonus adders that can increase your tax credit beyond the 30%. Contact NST to learn if you are eligible.
UPDATE: The Federal Solar Tax Credit expires on December 31, 2026, for commercial solar installations under Trump’s Big Beautiful Bill. Reach out to get your project on the books!
100% Federal Bonus Depreciation
Federal and State Available
One of the most powerful financial incentives available to businesses going solar right now is 100% federal bonus depreciation, and if you haven’t heard of it, you’ll want to pay attention. Under Section 168(k) of the tax code, businesses can deduct the entire cost of a qualifying solar energy system in the very first year it’s placed in service, rather than spreading that deduction out over five years. This benefit was permanently restored to 100% for systems acquired and placed in service after January 19, 2025, as part of the One Big Beautiful Bill. When you stack this on top of the 30% Investment Tax Credit (ITC), the numbers get really compelling. Businesses can effectively recover 45–50% of their total solar investment through tax savings in year one alone.
Federal Direct Pay for Solar Powered Systems
Federal Direct Pay is a game-changer for tax-exempt organizations including nonprofits, municipalities, houses of worship, and public utilities that have traditionally been locked out of solar tax incentives. Because these entities don’t carry a federal tax liability, standard credits are essentially useless to them. Direct Pay solves that by converting the 30% federal Investment Tax Credit into an actual cash payment from the IRS. It’s a straightforward and powerful way for mission-driven and public organizations to make solar financially viable, and the window to take advantage of it is closing fast.
NY State Specific Solar Incentives
NY State Sales Tax Exemption.
New York State exempts the full cost of commercial solar equipment and installation from state sales tax, delivering an immediate savings of approximately 4% on your total project cost. No application is required, as the exemption is built into the purchase, making it one of the simplest incentives available.
Note: While the 4% state tax is exempt everywhere, local tax savings (3%–4.875%) vary by county and city. You are guaranteed a 4% discount statewide, which may increase to 100% tax-free depending on your location.
NY Real Property Tax Exemption
Installing solar will increase your property’s value, but New York State ensures that added value won’t raise your property tax bill. Under RPTL Section 487, commercial solar installations are exempt from any resulting property tax increase for 15 years, a meaningful benefit in a state where property taxes rank among the highest in the country.
NY-Sun Solar PV Rebate Program
Updated for 2026
New York’s NY-Sun incentive program has entered a new phase. As of mid-2025, the standard MW Block incentives for residential projects in the Con Edison territory and commercial/industrial projects in the Upstate region have been fully allocated and closed. NYSERDA has transitioned those sectors into a new Solar Energy Equity Framework (SEEF), which directs remaining incentives toward income-eligible households and projects serving disadvantaged communities. Incentives in other regions and sectors may still be available depending on your location and project type. If you’re a business exploring NY-Sun, the most important step right now is confirming current block availability and eligibility for your specific region before moving forward.
USDA REAP Grant
Updated for 2026
As of now, the USDA is not accepting new REAP grant applications in New York State. The program was paused due to an overwhelming volume of applications and a backlog of pending reviews, with a planned reopening for new grant applications in October 2025. While that window has not yet fully materialized, guaranteed loan-only applications are still being accepted and processed. If you’re exploring REAP as a funding pathway, the smartest move right now is to get your project documentation in order so you’re ready to move the moment the application window reopens.
Why Choose Us?
Experience. Integrity. Reliability.
- NST systems are built with the finest quality components, offering the best value.
- With 25+ years in the business, NST stands as the most experienced solar solutions provider.
- Integrity and transparency are core values at NST, ensuring honest interactions with all our customers.
- Offering an extensive selection of solar electric systems and products, NST caters to diverse customer needs and requirements.
