With gasoline and oil costs shooting through the roof and energy overall taking a bigger bite out of budgets, this might seem like a perfect time for solar power. But instead of a golden age, the Long Island and nationwide solar industries are going through a huge transition, with some companies going under, as local government eyes ways to boost the sector.

The federal government, in January, ended a 30% Section 25D residential clean energy tax credit on solar panels, sending costs through the roof. New York State still has a $5,000 incentive at most, a shadow of the federal perk. Inflation, rising interest rates and labor shortages all left Long Island’s solar industry in a virtual eclipse when it seems like it should be at noon.

“It makes it more difficult for the solar developers and industry to sell someone on putting the systems in,” said Michael Voltz, director of energy efficiency and renewables forPSEG Long Island. “While the tax credit has slowed the industry down, it hasn’t completely shut it down.”

There are just under 100,000 electric accounts with solar in Nassau, Suffolk and the Rockaways, he said.

LIPA said in 2024 there were 1,146 megawatts of solar in its territory, up to 1,239 megawatts in 2025 and 1,252 in February 2026. LIPA, as of February 2026, said its area had reached 96% of its 2030 goal of 1,310 megawatts.

“LIPA is committed to driving the growth of solar energy on Long Island,” LIPA CEO Carrie Meek Gallagher said. “We are making steady progress with solar projects already in development while establishing strategic partnerships that lay the groundwork for future opportunities.”

Without federal incentive, residential solar power installation growth has slowed, with some major companies ending operations.

Long Island has added 66 megawatts of residential solar power and 30 megawatts of non-residential in recent years. Without the federal incentive, LIPA anticipates 47 to 55 megawatts of residential and 16 to 19 of non-residential solar power each year.

“The future trajectory of solar is unclear with the sunset (of the federal tax incentive),” a LIPA spokesperson said.

EmPower Solar is winding down its business, citing the absence of the federal residential tax credit, although some companies say they can navigate without it.

Source: LI Press