The New York State Budget Fails to Update the State’s Solar Tax Credit
New York State leaders bypassed a critical opportunity to advance solar equity in this year’s budget. Despite significant progress and widespread bipartisan support, the bill to expand and make the state’s solar residential tax credit refundable for low- and moderate-income households was not included in Governor Hochul’s final budget. This decision comes at a time when federal programs supporting clean energy and environmental justice are under attack, further underscoring the urgency for state action.
The Solar Within Reach Coalition issued the following statement:
“While we applaud the inclusion of initiatives like the $1 billion Sustainable Futures Fund for climate and support for the GAP (Green Affordable Pre-electrification) Fund pilot program, these measures alone fall short of the structural changes needed to ensure equitable access to renewable energy resources. To truly lead on climate, New York must prioritize policies that provide communities with the tools and funding they need to drive a clean energy future. Local solar is key to unlocking a stable, decarbonized grid with lower energy rates for all New Yorkers. By failing to update the solar tax credit, which has not been changed in 20 years, addressing the increasing energy demand and our imminent grid challenges is all the more difficult.
We thank bill sponsors Senator Harckham and Assemblywoman Walker, their co-sponsors, and the many advocates, allies, and impacted residents who helped elevate this issue. Thanks to their tireless efforts, this bill achieved a milestone by making it into both one-house budgets for the first time, laying the groundwork for future success. Together, we’ve demonstrated the power of coalition-building and community advocacy, and we remain committed to achieving a more equitable solar future in New York.”
“New York’s failure to pass a refundable solar tax credit for low- and moderate-income households leaves thousands of building residents unable to go solar and reduce their energy expenses,” said Kate Selden, Senior Policy Manager at Solar One. “At a time when the federal government is threatening the future of renewable energy—and with it, the critical energy bill savings it provides—our state missed a pivotal opportunity to lead the nation and advance equitable climate solutions. We remain committed to fighting for state-level action that ensures every New Yorker can benefit from clean, affordable energy.”
“This was a key opportunity for New York to lead on solar equity—and the state let it slip away,” said Erin Hellkamp, Associate Director, National Solar Activist Network at Solar United Neighbors. “It’s incredibly disappointing to see the Residential Solar Tax Credit left out of New York’s final budget—especially as solar opponents in Congress look to end federal investments. At Solar United Neighbors, we work in states across the country to make solar more accessible and affordable. We’ve seen how state incentives can be a game-changer for working families.”
“Rooftop solar is critical to making building electrification and energy efficiency measures more affordable for low-income homeowners,” said Kieran Micka-Maloy, Planner for Climate Initiatives at the Pratt Center for Community Development. “By failing to reform the solar tax credit in this year’s budget, the State missed a huge opportunity to bring rooftop solar within reach for low-income families and others with low tax liabilities, who stand to benefit from solar the most.”
“It’s disappointing that the Governor’s budget fails to include a modernized solar tax credit—an essential tool for advancing clean energy access and economic opportunity in our state,” said Elena Weissmann, Northeast Regional Director at Vote Solar. “With federal progress under threat, state action is more critical than ever, and we urge our leaders to stay the course toward a clean energy future that delivers for all communities.”
“As energy prices continue to rise for New Yorkers, residential rooftop solar has proven to be one of the most effective ways for homeowners to manage their increasing bills,” said Ruthie DeWit, Policy Associate at PosiGen, PBC. “The failure to include key modernizations of the state residential tax credit in this year’s budget, namely refundability, will only make it more difficult for low and moderate-income homeowners to pay their electricity bills. At a time when New York needed to step up, it chose to shy away; all homeowners deserve equitable access to affordable energy. “
About the Solar Within Reach Coalition
The Solar Within Reach Coalition unites solar homeowners, community organizations, housing equity advocates, environmental justice groups, and businesses that support fair and equitable access to solar and clean energy. These groups joined together to support legislation S2626 and A1373A that would modernize an existing solar tax incentive to make rooftop solar and energy storage ownership more affordable for New Yorkers.