Adding solar panels and switching rate plans can lower your New York State Electric & Gas (NYSEG) electric bill
Updated: October 22, 2020Installing solar panels can help reduce your NYSEG bill, thanks to Florida’s sunshine and the company’s net metering program! Combined with the 30% solar tax credit, KUA customers can see great savings when they switch to solar!
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Are solar panels worth it for New York State Electric & Gas (NYSEG) customers?
Yes! With a 25% New York state tax credit for solar, available sales and property tax exemptions, solar panels make a lot of sense for New York State Electric & Gas customers. NYSEG’s net metering policy also ensures you get credited on your power bill at full retail rates for the excess solar electricity your panels produce. Your credits are rolled over and applied to your next month’s bill.
Does New York State Electric & Gas (NYSEG) offer net metering credits for exported solar power?
Yes, New York State Electric & Gas (NYSEG) offers net metering credits.
Under the New York State Electric & Gas (NYSEG) net metering program, solar panels will first send energy to your home. Any excess solar energy is sent to the grid and purchased in the form of a bill credit. The credit value is determined by the Tri-Party Net Metering Power Purchase Agreement. KUA customers are billed for all of the electric energy delivered to them by the company.
If you have excess energy credits after offsetting your usage over the course of a year, NYSEG will pay you out for those credits at a lower "avoided cost rate". After that, the amount of excess energy in your account will be reset to zero.
What incentives, tax credits, and rebates are available to NYSEG customers for installing solar?
The biggest financial incentive for solar homeowners is the 30% federal solar tax credit. The tax credit equals 30% of the solar installation costs and directly reduces your federal income tax liability.
Some states and local governments offer additional solar incentives. These incentives include state tax credits, rebates, or performance-based incentives like Solar Renewable Energy Credits (SRECs). The best part is that these local incentives can be used in addition to the federal tax credit!
Here is every incentive you may be eligible for as a NYSEG customer:
Table 1: Incentives
| Upfront Incentives | Value* |
|---|---|
| Residential Clean Energy Tax Credit (Federal) | -$6,489 |
|
Solar Sales Tax Exemption
(State)
Exemption of New York state sales tax on retail sale and installation of residential solar systems. |
Varies |
|
Value of Distributed Energy Resources - Phase One Net Metering
(State)
Systems installed between March 9, 2019 and January 1, 2020 receive volumetric credits for kWh their system exports to the grid. After January 1, 2020, Phase One Value stack Tariff starts, receive monetary credit on bill not kWh credits. |
Varies |
|
NY-Sun Smart Energy Loan
(State)
Loan amounts available between $1,500 and $25,000 repaid directly to NYSERDA's loan server. |
Varies |
| Residential Solar State Tax Credit (State) | -$5,000 |
|
NYSERDA Retail Energy Storage Incentive Program
(State)
$250/kWh of storage |
Varies |
|
Net Metering (no longer available)
(State)
"Current net metering continues until 2022, at which time new customers will begin paying a small ""Customer Benefits Charge"" on every monthly bill." |
Varies |
|
NY-Sun Affordable Solar Program
(State)
Additional funding of $800/kW for homeowners at 80% or less of area median income. Also includes solar loans with on-bill repayment options. |
Varies |
|
Property Tax Exemption
(State)
100% of cost of system is exempt from property tax for 15 years. Local entities can disallow the exemption through implementing policy. |
Varies |
|
NY-Sun Megawatt Block Program - Upstate Region - Block 12
(Utility)
As of Aug 2023, at block 12 - $.20/W. |
-$1,855 |
| TOTAL | -$13,344 |
*Based on 9.28 kW system, average installation cost $28,484
How much does installing solar panels save the average New York State Electric & Gas (NYSEG) residential customer?
If you input the details for a NYSEG customer with a power bill of $130 per month into the best online solar panels calculator, it tells you that you need a 9.28 kW solar system that will produce 11,433 kWh per year and that this system will return the owner a $28,405 profit after repaying the cost of the system.
The solar savings possible for you as a NYSEG customer will depend on the amount of electricity you use and the cost of the solar system you buy. Savings also vary based on the direction of your roof or any shading of your roof that affects output.
Here is a monthly and lifetime solar savings estimate for the same relatively typical NYSEG customer with a $130 per month electric bill prior to solar and who installs a 9.28 kW solar system.
How much do residential solar panels cost for NYSEG customers?
Showing data for:
Prices based on a 10.4kW system, after 30% federal tax credit
Solar prices near you
Net profit (savings less system cost)
$27,187-$33,229
Payback period
8.1-9.9 years
Recommended size for the selected utility bill
10.4kW
Solar panel cost calculator
Detailed information about your estimate
Table 2: Estimate details
|
System Size (for 100% usage offset) 9.28 kW |
|
Annual Power Generation 11,433 kWh |
|
Pay-back time (assuming Cash purchase) 9.7 Years |
|
Internal Rate of Return (IRR) on Investment 5.6% |
|
Gross cost $28,484 |
|
Total Upfront Incentives and Rebates -$16,115 |
|
Net Cost of System after rebates and incentives $12,367 |
|
Total Cost of Utility Power Avoided over 25 years $40,772 |
Please note that the investment return figures do not include the possible increase in property value.
What are the environmental impacts of New York State Electric & Gas (NYSEG) customers installing solar panels?
While most homeowners decide to install solar panels because of financial savings over time, the environmental impacts of this choice are the primary motive for others. Here is a breakdown of the environmental benefits from a New York State Electric & Gas (NYSEG) customer installing a 9.28 kW solar system on their property:
A solar system generating 11,433 kWh per year will save you money AND make the world a nicer place
Saves you
$1,136
on average per year
Reduces CO2 emissions
5.66
tons per year
Equivalent to planting
40 trees
per year
Equivalent to driving
12,520 mi
less per year
CO2 emissions calculation based on the electricity generation and emissions data for your state in 2015 as published by the US Government Energy Information Administration.
What factors affect the price of solar panels for New York State Electric & Gas (NYSEG) customers?
The cost of installing solar panels will vary with brands of solar panels and inverters you choose and also the installation company you choose to install them.
It is common to see really good systems, using quality brands of equipment, being sold for around $3.07 per watt or $12,367 for a standard 9.28 kW solar system after the customer claims the 30% federal solar tax credit.