NY-Sun Loan Program
Administered by NYSERDA
The NY-Sun Loan Program offers residential solar financing through two options: an On-Bill Recovery Loan (where payments appear on your utility bill and must be less than your estimated energy savings) or a Smart Energy Loan (repaid monthly by check or automatic payment). Both loans range from $1,500–$25,000 with terms of 5, 10, or 15 years at below-market rates, and you can apply through NYSERDA if your utility is Central Hudson, Con Edison, PSEG-Long Island, NYSEG, National Grid (upstate), Orange & Rockland, or Rochester Gas & Electric.
NY-Sun financing enables your residential and small commercial customers to afford solar installations through low-interest State-sponsored loans that NYSERDA administers; residential loans range up to $25,000 while small business and nonprofit customers can access up to $50,000–$100,000 depending on the loan product. Partner with NYSERDA's program by becoming an approved contractor to access customers who can leverage these below-market financing options, and note that loan terms and rates are subject to change, so direct customers to check current rates on the program website.
The NY-Sun Loan Program, funded through the Green Jobs–Green New York Act of 2009, operates dual residential tracks (On-Bill Recovery and Smart Energy loans at $1,500–$25,000) and three commercial tracks for small businesses, nonprofits, and large commercial entities, with terms up to 10–15 years at fixed or below-market rates. NYSERDA directly funds the residential program and partners with private financial institutions for commercial lending, including the Small Business/Nonprofit On-Bill Recovery Loan (up to $50,000 at 2% fixed), Small Commercial Participation Loan (NYSERDA covers 50% up to $50,000 at 2% fixed with private lender co-funding), and Energy Improvement Corporation C-PACE financing for municipalities; the program targets low-income residents and creditworthy small businesses by leveraging utility bill integration and lender partnerships to reduce default risk and expand solar access across residential, commercial, industrial, and nonprofit sectors.
Program details
- Program ID
- 5540
- Last updated
- 6/30/2025
Eligibility
- Sectors
- commercial industrial nonprofit residential low income residential
- Technologies
- solar photovoltaics
Program summary
NY-Sun loan program is part of broader NY-Sun Initiative program to accelerate the use of solar PV across the State. In addition to cash incentives, NY-Sun Initiative also provides State sponsored low-interest financing options to install solar PV systems. The financing for the program is made available through the Green Jobs- Green New York (GJGNY) Act of 2009.
NYSERDA offers two financing options to residential customers, On-Bill Recovery Loan or Smart Energy Loan. These loans provide lower interest rates to low-income residents and to those who cannot qualify for traditional. Residential customers may be eligible for loans between $1,500 - $25,000 with loan terms varying between programs. Loan rates are subject to change, check available residential rates here.
Residential On-Bill Recovery (OBR) Loan
The OBR Loan is available to homeowners who are named on the utility account, and serviced by Central Hudson, Con Edison, PSEG-Long Island (must apply directly through utility), NYSEG, National Grid (upstate customers only), Orange & Rockland, or Rochester Gas & Electric. With the OBR Loan, loan payments are paid as part of the customer's utility bill. Estimated average monthly energy cost savings must be greater than monthly loan payments to use this loan. Loan terms vary from 5, 10, or 15 years. Loan balances may be transferred to a new owner when the home is sold, as long as written notice is provided to the new owner.
Smart Energy Loan
The Smart Energy Loan is a traditional loan that is repaid monthly via check or automatic payment. To qualify for this loan, applicants must own the home or be an authorized representative of the property owner. Loan terms vary from 5, 10, or 15 years. If the property is sold or transferred, the applicant remains responsible for the balance of the loan.
NY-Sun partners with private-sector financial institutions to offer loans for small and large businesses, as well as not-for-profit organizations. There are three loan options available Small Business/Not-for-Profit On-Bill Recovery loan, Small Commercial Participation loan, and Commercial/Industrial - Energy Improvement Corporation (EIC).
Small Business/Not-for-Profit On-Bill Recovery Loan
With the similar to the residential version, loan payments are paid as part of the customer's utility bill. Through this program, small businesses and not-for-profits have access to loans of up to $50,000 at an interest rate of 2% (fixed at closing), with a repayment period of up to 10 years. Loan balances may be transferred to a new owner when the property is sold.
Small Commercial Participation Loans
NYSERDA partners with lenders to help small businesses and not-for-profit organizations access up to $100,000 in financing at a below-market interest rate and with flexible repayment periods. For this program, NYSERDA offers a loan for 50% of the project cost, up to $50,000 at an interest rate of 2% (fixed at closing). The participating lender provides the remainder of the loan at the market interest rate. Borrowers make loan payments directly to their lender as with a typical loan. The consolidated interest rate is subject to the customer’s credit qualification.
Commercial/Industrial - Energy Improvement Corporation (EIC)
EIC is a New York State non-profit, local development corporation that operates EIC OPEN C-PACE for the benefit of its member municipalities, which include counties and cities across New York State, as well as towns in Westchester County.
Contact & resources
- Contact email
- info@nyserda.ny.gov
- Additional resources
Please verify current program details with the administering agency before making any financial decisions.
