Solar, Wind and Other Energy Systems Property Tax Exemption

This is New York's property tax exemption for solar and wind energy systems, under §487 of the Real Property Tax Law. It is a different exemption from the conservation-improvements one at §487-a, which covers weatherisation measures on small homes — that is Energy Conservation Improvements Property Tax Exemption.

In 2017, New York passed Assembly Bill 260, adding electric energy storage equipment and systems as eligible for an exemption from real property taxes for certain energy equipment.

Other equipment included in the exemption includes micro-hydroelectric energy systems, fuel cell electric generating systems, and micro-combined heat and power generating equipment systems (added in the 2017 bill), as well as solar, wind, and farm waste energy systems (previously included).

The tax exemption lasts for a period of fifteen years. To qualify for the exemption solar, wind, or farm waste energy systems must be (a) in existence or constructed prior to July 1, 1988, or (b) constructed after January 1, 1991 and before January 1, 2030. Micro-hydroelectric energy, fuel cell electric generating, micro-combined heat and power generating equipment, or electric energy storage equipment and systems must be constructed after January 1, 2018 and before January 1, 2030. The exemption applies to the increase in value of the real property due to the addition of the energy equipment.

Municipalities and school districts can elect to not apply this exemption within their jurisdiction.

As of 2019, real property, comprising of or including an eligible energy system, that is owned or controlled by New York State or a New York State department, agency or public authority where New York State or the New York State department, agency, or public authority has agreed in writing with the energy system owner or operator to purchase the produced energy or the environmental credits or attributes created by virtue of the system’s operation is permanently exempt from taxation, special ad valorem levies and special assessments, and the owner of such property shall not be subject to any requirement to enter in an agreement for payments in lieu of taxes.

Two details that decide eligibility. Construction of a solar, wind or farm waste energy system is deemed to have begun when the contract or interconnection agreement with the utility is fully executed. And the opt-out is exercised by local law for a county, city, town or village and by resolution for a school district — but the city school districts of New York, Buffalo, Rochester, Syracuse and Yonkers cannot opt out.

Verified against the New York State Department of Taxation and Finance assessor manual for RPTL §487 on 28 October 2026. The construction deadline in this record read 1 January 2025, a date that had already passed; it is now 1 January 2030 for every eligible system type.