Solar in New York: incentives, costs and payback (2025)

New York has some of the nation's most generous solar incentives, making solar financially attractive despite the state's moderate solar irradiance levels.

New York solar incentives

Federal tax credit (30%) The federal solar Investment Tax Credit (ITC) allows you to deduct 30% of your solar installation cost from your federal taxes. This credit is available through 2032.

New York State tax credit New York offers a state tax credit equal to 25% of system cost, up to $5,000. This credit can be combined with the federal credit for substantial savings.

NYSERDA rebates The New York State Energy Research and Development Authority (NYSERDA) offers rebates:

• Residential systems: $0.40/watt for systems up to 25kW
• Additional incentives for affordable housing and disadvantaged communities
• Rebates are applied at installation

NY-Sun program The NY-Sun initiative provides additional funding and support for solar installations across the state.

Local incentives Many New York municipalities offer additional incentives:

• New York City: Property tax abatements for solar systems
• Long Island: PSEG rebates and financing programs
• Westchester County: Solar group buying programs

Cost and payback in New York

Average installation cost Solar panels in New York cost an average of $3.40 per watt before incentives. A typical 6kW system costs:

• Gross cost: $20,400
• After federal tax credit (30%): $14,280
• After state credit ($5,000): $9,280
• After NYSERDA rebate ($2,400): $6,880

Payback time With New York's high electricity rates (average $0.21/kWh) and generous incentives, most solar systems pay for themselves in 8-10 years despite moderate solar irradiance.

Annual savings A typical 6kW system in New York generates about 7,200 kWh annually, saving homeowners $1,500+ per year on electricity bills.

VDER and electricity rates

New York uses the Value of Distributed Energy Resources (VDER) program instead of traditional net metering:

• Location-based credits that vary by utility zone
• Time-of-use credits that reflect grid value
• Environmental credits for renewable energy benefits

Average electricity rates in New York are $0.21/kWh, among the highest in the nation, making solar savings substantial.

Best solar companies in New York

New York has many qualified solar installers. We recommend getting quotes from:

• SunPower: Premium panels with excellent warranties
• Tesla Solar: Competitive pricing with Powerwall integration
• Sunrun: Comprehensive service and financing options
• Local installers: Often provide competitive pricing and personalised service

Get quotes from at least three installers to compare pricing and proposals.

Next steps

1. Calculate your potential savings with our solar calculator
2. Check NYSERDA incentive availability as rebates are limited
3. Get multiple quotes from certified installers
4. Review your electricity bills to understand your usage patterns
5. Consider battery storage for backup power and additional savings

New York's generous incentives make solar an excellent investment despite the state's moderate solar resources.

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