Long Island solar firm updates homeowners on tax credits after federal cutoff

Power Solutions says the federal residential solar tax credit ended for systems connected in 2026, but New York homeowners can still tap a state tax credit or use a prepaid lease tied to a commercial solar incentive. The company is steering customers toward new savings options as solar financing changes.

Why it matters: - Long Island homeowners who want to go solar in 2026 no longer have access to the 30% federal residential clean energy credit. - The change raises the importance of state credits and lease-based discounts for households trying to reduce upfront solar costs. - Power Solutions says customers can still find meaningful savings through New York’s credit or a prepaid lease structure.

What happened: - Power Solutions said the federal Residential Clean Energy Credit is no longer available for residential projects connected on or after January 1, 2026. - The credit remained available for Long Island solar systems that went live by December 31, 2025. - Owner Joe Milillo said the tax landscape has changed, but homeowners can still save through state incentives and an alternative prepaid lease option.

The details: - The federal Residential Clean Energy Credit had provided a nonrefundable credit equal to 30% of the cost of a new home solar installation. - Funding for the federal credit was cut under the One Big Beautiful Bill Act of 2025. - The New York State Solar Energy System Equipment Credit remains available through the New York State Department of Taxation and Finance. - The state credit applies to customers who buy a solar system outright, sign a written lease agreement, or enter a power purchase agreement. - The New York credit equals 25% of the installation cost, including equipment and labor. - The state credit is capped at $5,000. - The state credit is not refundable, but unused amounts can be carried forward for up to five years. - Claims are filed on Form IT-255. - Power Solutions also points customers to the Participate Energy Program for 2026 installations. - The prepaid lease uses the federal Commercial Solar Tax Credit under Section 48 of the U.S. tax code and passes that value to the customer as a discount. - Participate Energy owns the system under that model. - The lease requires no minimum FICO score and no lien on the home. - The lease can be transferred if the homeowner sells the property. - The homeowner can buy the system after the sixth year or at the end of the lease term at fair market value. - Power Solutions is offering free estimates and energy-savings evaluations, including cost/benefit analysis.

Between the lines: - The update reflects a shift from a broad federal incentive to a more patchwork mix of state tax credits and financing structures. - That makes upfront savings more dependent on how a homeowner chooses to own, lease or purchase solar. - The prepaid lease option may appeal to homeowners who want lower barriers to entry and fewer financing hurdles.

What's next: - Power Solutions says it will help homeowners compare ownership against a prepaid lease using long-term savings estimates. - Customers considering solar in 2026 will likely need to decide quickly between buying, leasing or using the state credit before installation. - The company continues to serve all of Long Island with solar panels and battery storage systems.

The bottom line: - The federal solar tax credit is gone for 2026 residential projects, but New York homeowners still have two notable paths to lower costs: a state tax credit or a prepaid lease discount.