New York State Legislature Prioritizes Clean Energy in 2026 Budget

Budget included policies to accelerate clean energy deployment like Sales Tax Exemption for Commercial Energy Storage and Grid-Enhancing Technologies 

ALBANY, NY – Today, the New York State Legislature passed their 2026 budget, and cost-saving clean energy measures were front and center. Industry advocates applauded the FY2026 Executive Budget as a major step forward in supporting New York’s clean energy transition. The budget included, but was not limited to, funding for electric school buses, expanded residential solar tax credits, funding for geothermal, green affordable pre-electrification, a Sales Tax Exemption for commercial energy storage systems, and support for Grid-Enhancing Technologies (GETs) and Advanced Conductors. 

"The one-house budget proposal is a big win for New York’s clean energy future," said Kristina Persaud, New York Policy Lead at Advanced Energy United. "By including these forward-looking policies, lawmakers are making it easier and more cost-effective to modernize our energy infrastructure and advance New York’s transition to a clean energy future. This bill will bring more clean energy online, cut costs for families across the state, and keep investments flowing." 

 The budget policies will accelerate clean energy deployment by: 

• Investing in clean energy solutions: The Sustainable Future Program allocates $300 million for buildings, $200 million for electric school buses, $150 million for thermal energy networks, $100 million for EV fast charging, and $100 million for Charge Ready ensuring every corner of the state has access to the grid of tomorrow and jump-starting long term cost savings for New Yorkers.  

• Ensuring parity between technologies: The policy will align energy storage with other clean energy technologies like solar panels, which already receive a statewide sales tax exemption. 

• Unlocking grid capacity: GETs will allow the existing grid to carry more electricity, enabling the integration of more renewable energy without costly new infrastructure. 

• Minimizing fiscal impact: NYSERDA estimates the sales tax exemption will have a minimal fiscal impact, while empowering developers to finish projects faster and cheaper than the current process of applying for discretionary sales tax exemptions through local authorities. 

• Lowering ratepayer costs: By reducing upfront project costs, the exemption and GETs will enable more clean energy projects to participate in NYSERDA’s incentive programs, ultimately driving down energy costs for New York families. 

"These forward-looking policies will accelerate New York’s clean energy transition while making the grid more affordable and reliable for all New Yorkers," added Persaud. "By prioritizing clean energy Albany is setting a national example of how states can modernize their electric grids to meet climate goals and improve the lives of everyday New Yorkers. We urge Governor Hochul and the Legislature to adopt these provisions in the final budget to keep the lights on in the Empire State."