The sun may be shining on solar in New York today, but what about tomorrow?

With a web of federal incentives and ambitious state goals, New York has become one of the top states for residential solar. But as the landmark federal Inflation Reduction Act begins to wind down key tax credits after 2025, and as New York’s own programs face funding and policy changes, many homeowners are asking: What’s next for solar in the Empire State?

In this article, we’ll break down what New York homeowners need to know about the changing solar landscape, what’s already in place, and what might be coming next. If you’re thinking about going solar—or wondering how recent policies affect your existing system—this is the time to pay attention.

The Federal Clock Is Ticking

Let’s start with the most pressing deadline: the 30% federal solar tax credit, officially called the Residential Clean Energy Credit (Section 25D).

This credit, which allows homeowners to deduct 30% of their total solar installation cost from their federal taxes, was extended under the Inflation Reduction Act (IRA) in 2022. But it won’t last forever. Unless Congress acts again, this incentive will drop to 26% in 2033, 22% in 2034, and expire altogether by 2035.

But here’s the real catch: In order to qualify for the full 30% credit, your system must be installed and turned on by December 31, 2025.

That’s why solar providers across the country—including local companies like New York Electric & Solar, are encouraging homeowners to plan their projects now, not later. As the deadline gets closer, demand is expected to surge, leading to potential delays in permitting, utility approvals, and equipment availability.

What the Big Beautiful Bill Did (and Didn’t Do)

In July 2025, the U.S. Congress passed what’s officially known as H.R. 1 — but what many in the media have dubbed the “Big Beautiful Bill.” This sweeping piece of federal legislation made major changes to tax policy, energy funding, and climate programs nationwide. For homeowners interested in going solar, it’s especially important to understand what this bill did — and what it didn’t do.

One of the most significant impacts of the Big Beautiful Bill was its rollback of clean energy tax credits that had previously been expanded under the Inflation Reduction Act. This includes a phase-out of the 30% Residential Clean Energy Tax Credit (Section 25D) — the credit that homeowners use to reduce the cost of installing solar panels. Under the new federal law, the credit is set to expire after December 31, 2025, unless further action is taken. For many homeowners, this makes 2025 the final window to access the full federal incentive.

In addition to cutting tax credits, the bill introduced stricter requirements for solar equipment sourcing — including new rules around foreign entities and domestic content. While these changes aim to boost American manufacturing, they also add complexity for solar installers and may impact equipment availability or pricing.

What the Big Beautiful Bill did not do, however, is directly affect New York State’s climate legislation, including the much-discussed Build Public Renewables Act, which passed at the state level in 2023.

What New York’s Build Public Renewables Act Actually Covers

Before the Big Beautiful Bill, New York passed its own landmark climate legislation: the Build Public Renewables Act (BPRA). Signed into law in 2023, this bill expanded the authority of the New York Power Authority (NYPA) to develop, build, and operate large-scale renewable energy projects across the state.

The BPRA was a major win for public power advocates, particularly in terms of equity. It gave NYPA the green light to build clean energy infrastructure in underserved communities, ensuring a more just transition to renewable energy. It also created pathways for union jobs and emphasized long-term decarbonization of the state’s power grid.

But here’s the key point for homeowners: the Build Public Renewables Act does not provide new financial incentives for residential solar. It focuses primarily on utility-scale and community-level clean energy. While it strengthens the grid and supports statewide sustainability goals, it doesn’t lower out-of-pocket costs for individual families looking to install solar panels on their rooftops.

So Where Does That Leave Homeowners?

The combination of these two bills; one federal, one state, paints a clear picture:

  • New York’s Build Public Renewables Act is a long-term infrastructure strategy that strengthens the role of public power but doesn’t provide direct financial help for homeowners.
  • The federal Big Beautiful Bill (H.R. 1), on the other hand, reduces or removes the tax incentives that homeowners have relied on to make solar affordable.

That’s why, for New Yorkers thinking about going solar, 2025 is a crucial year. To lock in the 30% federal tax credit, your system must be fully installed and connected to the grid by December 31, 2025 — no exceptions.

Why New York Electric & Solar Is Your Best Partner

Navigating all these policy changes can feel overwhelming. That’s where New York Electric & Solar comes in.

As a trusted, local provider, we’ve helped hundreds of homeowners maximize their solar savings by staying ahead of evolving incentive programs. We offer:

  • In-house installation teams (no subcontractors)
  • Fast permitting and interconnection
  • Expert support with state and federal tax paperwork
  • Ongoing system monitoring and maintenance

Whether you’re new to solar or want to expand an existing system, we’ll walk you through your options clearly and professionally. And because we’re local, we understand New York’s permitting processes and municipal timelines better than anyone.

What You Should Do Next

If you’ve been thinking about going solar — now’s the time to act. The sun may be shining for solar in 2025, but the window is closing fast.

  • Start with a free consultation
  • Make sure your system is installed and interconnected by the end of the year.
  •  Secure your 30% federal tax credit before it’s gone.

And remember, while New York’s commitment to clean energy remains strong, there’s no replacement on the books yet for the federal residential credit that’s set to expire. If you wait until 2026, you may be paying significantly more out of pocket.

A Smarter Solar Future

Both the Build Public Renewables Act and the Big Beautiful Bill point toward a more electrified, climate-conscious future, but they take different paths. New York is investing in public infrastructure. The federal government is shifting focus toward domestic manufacturing and energy security. But for homeowners, it’s clear: 2025 is your moment.

Let New York Electric & Solar help you make the most of it, with clean energy that pays off.