If you live in New York and have been thinking about adding a home battery, there is a deadline worth knowing about. The NY battery tax exemption is currently scheduled to expire on May 31, 2026.
Governor Hochul’s FY 2027 Executive Budget proposed pushing the exemption out to June 1, 2028. The Governor announced an agreement with legislative leaders on the budget on May 7, 2026, but whether the storage exemption extension made it into the final enacted bill is still being confirmed. For homeowners weighing battery storage right now, that uncertainty matters.
What the NY Residential Energy Storage Sales Tax Exemption Covers
Effective June 1, 2024, New York exempted both the equipment and the installation labor for residential energy storage systems from state and local sales and use tax. That covers products like the Tesla Powerwall 3, Enphase IQ Battery, FranklinWH, and similar home battery systems installed at a one-, two-, or three-family residence.
The exemption applies to the full installed cost, not just the hardware. So both the battery itself and the labor to install it are tax-free for residential projects installed and invoiced before the exemption expires.
Why the May 31, 2026 Deadline Matters
Sales tax rates across New York vary by county, but combined state and local rates across Infinity’s service area range from 8% (Ulster, Sullivan, Greene) to 8.375% (Westchester, Rockland, Putnam), with Orange and Dutchess at 8.125%. On a battery project that runs $15,000 to $20,000 installed, that translates to roughly $1,200 to $1,675 in tax savings. On a multi-battery system, the savings climb proportionally.
Until the final enacted bill text confirms whether the extension survived, the May 31 deadline still stands. Projects installed and invoiced after that date could be billed at the standard sales tax rate. Homeowners who are already in the planning stage may want to lock in pricing now rather than wait and hope.
How Much Can You Save on a Battery in NY Right Now?
The sales tax exemption is one of several incentives stacked together. Here is what a typical New York homeowner can layer onto a battery purchase in 2026:
NYSERDA Residential Energy Storage Incentive. NYSERDA pays a per-kilowatt-hour rebate that varies by utility territory. As of May 2026, customers in Westchester and Rockland (Con Edison territory) qualify for $250/kWh — about $3,375 on a 13.5 kWh Tesla Powerwall 3. Customers in Orange, Dutchess, Ulster, Sullivan, Greene, and Putnam (Rest of State) qualify for $200/kWh, which is about $2,700 on the same battery. Rates are subject to step down as each region’s Megawatt Block fills, so the NYSERDA Residential Incentive Dashboard shows the current rate for your address. In many NYSERDA-supported utility territories, battery systems may need to participate in a utility Bring Your Own Battery (BYOB) or demand response program to qualify for the full incentive.
BYOB Enrollment Payments. If you enroll your battery in Con Edison, NYSEG, Orange & Rockland, or National Grid’s BYOB program, you receive ongoing payments each year your battery participates in summer peak events. These payments stack on top of the upfront NYSERDA rebate.
25% New York State Tax Credit. When installed with a qualifying solar energy system, battery storage may also qualify as part of New York’s residential solar tax credit, which is worth 25% of eligible costs up to $5,000.
Property Tax Exemption. Most New York towns offer a 15-year property tax exemption on the added home value from solar and storage, so the upgrade does not raise your property tax bill.
Why Batteries Are Getting More Attention in New York
Two things are happening in New York’s energy market that put home batteries in a different light than they were in five years ago.
First, rates are climbing. Con Edison received approval for a multi-year rate plan that raises delivery charges through 2028, and Orange & Rockland and NYSEG customers across the rest of our service area are seeing similar increases under their own recent rate cases. For a household using 800 kWh a month, even a few cents per kWh adds up to real money over a year.
Second, time-of-use rate structures are spreading. When peak afternoon and evening electricity is priced higher than overnight power, a battery that discharges during expensive hours and recharges from solar or off-peak grid power directly lowers what you pay each month. Without a battery, every kilowatt-hour you use after dark comes from the grid at peak rates.
A battery also keeps the lights on during outages. After the storms that hit the Hudson Valley and Westchester in recent years, backup power has shifted from a luxury to something more practical for families with home offices, medical equipment, or aging parents at home.
Should You Wait or Move Now?
Honest answer: it depends on where you are in the decision. If you have already gotten quotes and you are ready to sign, the math says lock in before May 31 so the sales tax exemption is guaranteed on your project. If you are just starting to research, do not panic. Even if the exemption lapses for a few months, NYSERDA rebates, the 25% state tax credit, BYOB payments, and net metering still make battery economics work in New York.
One more thing to keep in mind: the NYSERDA program operates on a Megawatt Block structure. Once a region’s allocation fills up, the incentive amount steps down. The same is true for sales tax exemption uncertainty; the longer you wait, the less you control the variables.
How Infinity Energy Can Help
Infinity Energy has been installing solar and battery storage across New York, New Jersey, and Connecticut since 2009, with more than 10,000 completed installations. We are a NYSERDA Gold installer and a Tesla Powerwall certified installer, and we handle the BYOB enrollment paperwork for you so you do not lose out on the NYSERDA rebate. Our team also navigates the property tax exemption filings town by town across Westchester, Rockland, Orange, and the rest of our New York service area.
If you want a clear picture of what a battery would cost, save, and qualify for at your address before the sales tax exemption deadline, request a free consultation. We will run the numbers honestly, explain every incentive that applies to your utility, and give you a fixed quote, no pressure to decide on the spot.
