Federal ITC 30% (tax credit)
State tax credit: Yes ($5,000)
Net metering (by utility)
There can be solar tax credits and incentives available at the federal, state and local levels. The calculator above will show you the value of all incentives your home is eligible for.
New York is the best place to go solar in the country. Legislators have created the right mix of industry and residential programs to spur huge solar growth, with over two gigawatts installed. Things are looking bright for the future, as the state is on pace for six gigawatts installed by 2025.
Between the New York state solar rebates and federal tax incentives, you could save 40% off the up-front cost of solar, and your panels will pay themselves off in just a few short years, leaving you with free electricity for the next few decades!
Learn what solar incentives are available to New York homeowners
See what New York solar incentives you qualify for based on your utility company and city
Find out how much these incentives and/or New York solar tax credits will reduce your cost to go solar and add batteries
The federal solar investment tax credit will have the biggest impact on the cost you will face to go solar in New York
If you install your photovoltaic system before the end of 2032, the federal tax credit is 30% of the cost of your solar panel system. This is 30% off the entire cost of the system including equipment, labor, and permitting.
Example: If your solar energy system costs $20,000, your federal solar tax credit would be $20,000 x 30% = $6,000.
The federal tax credit falls to 26% starting in 2033.
With net metering in some states, you get full retail rate credit for the amount of electricity you send back into the grid with your solar panels.
In New York, utility companies must provide net metering services for residential systems up to 25 kW. Any net excess electricity generation is credited to your next bill at the retail rate. Excess generation is reconciled annually at the avoided-cost rate.
However, solar customers do have to pay a monthly Customer Benefit Charge (CBC) that cannot be offset by solar generation. The customer benefit charge is based on the size of your solar system and your utility company. The CBC will equate to a few extra dollars per month and doesn't drastically impact your solar investment.
However, New York is looking to transition to a new solar billing structure called the Value of Distributed Energy Resources (VDER), or Value Stack, program. This program seeks to credit solar energy producers more accurately without pushing costs onto non-solar customers.
Through the NY-Sun PV Incentive Program, New York residents statewide are looking at rebate rates of $200 to $400 per kW on solar installations up to 25 kW. That means you can expect a rebate of $1,200-$2,400 on a 6 kW system. Be aware, however, that the incentive values get lower as state solar capacity goals are met. Long Island is already out of funding, so don’t be late to the awesome incentives party if you live in other areas of New York!
In addition to the 30% federal tax credit, you can qualify for a sizable 25% New York solar tax credit. You simply take 25% of your total installation cost (after you take the NY-Sun rebate) and file this handy New York tax form IT-255 to receive the credit.
Be mindful that there’s a cap of $5,000 on this. So, if your cost is more than $20,000, you won't get a tax credit bigger than $5,000 back from the state.
Lawmakers in New York have been doing their best to make going solar easier for residents. In addition to the above solar power rebates and tax credits, adding solar panels to your home is exempt from property tax increases for a solid fifteen years, even though installing solar panels adds roughly 20 times your annual electricity bill savings to your property value. In the case of our 6 kW example, that's about $28,000 of additional value to your home that you don't have to pay.
Also, contrary to other home upgrades like new kitchen stoves or bathroom fixtures, with solar panels in New York, you will not have to pay any sales taxes on your system! That's a bunch of cash you're saving right up front.
NYSERDA offers battery storage incentives for New York City, Westchester, Long Island, and the rest of the state (ROS). The funding is meant to be paired with the NY-Sun rebate outlined above.
As of 2022, there are only single-family residential incentives for battery storage available in Long Island.
The incentive amount is $250/kWh. So, if you install a Tesla Powerwall battery with a capacity of 13.5 kWh, your Powerwall system would be eligible for a rebate of $3,375. Your costs could be even lower if you are able to take the state and federal tax credits.
Showing data for:
Prices based on a 8.6kW system, after 30% federal tax credit
110 solar companies in New York provide pricing on SolarReviews. Here are the best rated companies near you.
4.85 112 Reviews
Glen Denlinger, over 1 month
Our solar system was put in place by expert craftsmen. Paradise Energy Solutions provide excellent service. I can highly recommend them.
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Average cost (5kW system)
$16,000 ($3.20 per watt)
Glen Denlinger, over 1 month
Our solar system was put in place by expert craftsmen. Paradise Energy Solutions provide excellent service. I can highly recommend them.
4.83 227 Reviews
John N, over 1 month
It was a pleasure to work with Mark and his install team. The whole process was easy start to finish. Mark explained everything very well and took time doing so. Would highly recommend Mark Lieberman from Harvest Power for all your Solar needs.
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John N, over 1 month
It was a pleasure to work with Mark and his install team. The whole process was easy start to finish. Mark explained everything very well and took time doing so. Would highly recommend Mark Lieberman from Harvest Power for all your Solar needs.
4.82 264 Reviews
Ed M., over 1 month
Installation was prompt, fast, extremely neat and professional. We are very happy with our system so far.
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Average cost (5kW system)
$13,750 ($2.75 per watt)
Ed M., over 1 month
Installation was prompt, fast, extremely neat and professional. We are very happy with our system so far.
4.74 80 Reviews
Demetrios D, over 1 month
We started our solar panel install journey about a year ago. After multiple estimates from the big solar companies we were lucky to find SunBlue Energy through our roofing contractor. All the big companies were telling us we can fit 25-26 panels on our roof, basically taking up every inch of space. We would have had big problems if we proceeded with those guys. Chris Hale from SunBlue explained to us that every village and town in the area has their own fire codes when it comes to solar panels on roof. Setbacks from ridge and sides is mandatory for pathways should there be a fire emergency. Chris was able to get us 22 panels at a great price and gave us a modest estimate of solar production. We are 8 months in and our highest ConEd bill is $30.86. We used to average $215 a month. Our system has had zero issues and runs flawlessly every day thanks to the great install crew. And everyone that works in the offices are always there to help and respon to any emails promptly. I can’t recommend SunBlue Energy enough.
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Average cost (5kW system)
$17,150 ($3.43 per watt)
Demetrios D, over 1 month
We started our solar panel install journey about a year ago. After multiple estimates from the big solar companies we were lucky to find SunBlue Energy through our roofing contractor. All the big companies were telling us we can fit 25-26 panels on our roof, basically taking up every inch of space. We would have had big problems if we proceeded with those guys. Chris Hale from SunBlue explained to us that every village and town in the area has their own fire codes when it comes to solar panels on roof. Setbacks from ridge and sides is mandatory for pathways should there be a fire emergency. Chris was able to get us 22 panels at a great price and gave us a modest estimate of solar production. We are 8 months in and our highest ConEd bill is $30.86. We used to average $215 a month. Our system has had zero issues and runs flawlessly every day thanks to the great install crew. And everyone that works in the offices are always there to help and respon to any emails promptly. I can’t recommend SunBlue Energy enough.
4.73 564 Reviews
Shay, over 1 month
Crew was quick and efficient uninstalling the panels.
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Shay, over 1 month
Crew was quick and efficient uninstalling the panels.
4.71 26 Reviews
cheryl, over 1 month
I spoke with Dov at Powerlutions regarding our solar contract. He was very knowledgeable, patient and extremely pleasant to work with. The installation team was very respectful and professional, it was very impressive to watch them do the job. I am looking forward to geeting good use out of our new solar panels. Thank you Dov and Powerlutions for an excellent experience.
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cheryl, over 1 month
I spoke with Dov at Powerlutions regarding our solar contract. He was very knowledgeable, patient and extremely pleasant to work with. The installation team was very respectful and professional, it was very impressive to watch them do the job. I am looking forward to geeting good use out of our new solar panels. Thank you Dov and Powerlutions for an excellent experience.
4.71 65 Reviews
David Hoover, over 1 month
I ws very pleased with all aspects of our purchase and installation of solar panels for our home. From the initial sales, through installation and activation, CIR staff were always polite, professional and competent.
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David Hoover, over 1 month
I ws very pleased with all aspects of our purchase and installation of solar panels for our home. From the initial sales, through installation and activation, CIR staff were always polite, professional and competent.
4.69 91 Reviews
Nick , over 1 month
I’m happy to give this review as my experience was very positive with New York State Solar. After years of contemplating solar and after narrowing it down to 3 different companies it was my salesperson that finally made me comfortable enough to explain it all to me in detail where I decided now was the time to commit to getting it. Special thanks to salesperson Danny (Cheong) who was very nice to work with along the way. He made things clear and was in constant contact every step of the way (even on his honeymoon.) I have since recommended him a few times and will continue doing so. If you are looking to get solar he is worth listening to. Contact him at DCheong@nystatesolar.com
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Nick , over 1 month
I’m happy to give this review as my experience was very positive with New York State Solar. After years of contemplating solar and after narrowing it down to 3 different companies it was my salesperson that finally made me comfortable enough to explain it all to me in detail where I decided now was the time to commit to getting it. Special thanks to salesperson Danny (Cheong) who was very nice to work with along the way. He made things clear and was in constant contact every step of the way (even on his honeymoon.) I have since recommended him a few times and will continue doing so. If you are looking to get solar he is worth listening to. Contact him at DCheong@nystatesolar.com
4.66 151 Reviews
Latimer, over 1 month
From initial contact to actual solar installation was just over a month. It would have been faster but apparently there was a defect in the inverter (not their fault). EVERY step of the way was easy to understand, easy to communicate, and they undercut their main competition by (not exaggerating) $8,000 for a better system. I am just so thrilled with the care and professionalism from minute one with this company. Wow!
Read more
Latimer, over 1 month
From initial contact to actual solar installation was just over a month. It would have been faster but apparently there was a defect in the inverter (not their fault). EVERY step of the way was easy to understand, easy to communicate, and they undercut their main competition by (not exaggerating) $8,000 for a better system. I am just so thrilled with the care and professionalism from minute one with this company. Wow!
4.66 134 Reviews
Brian, over 1 month
I would not recommend this company. It’s been nothing more than a headache since having the panels installed. From not calculating enough panels and not even breaking even year over year, to leaks and having to threaten to sue for a minor repair. Now it’s 3 years into having their panels and I need my roof replaced and they want to charge to remove and reinstall when they had inspected the roof and said we were good to go for the install. It was nothing more than pushing the sale rather than doing the right thing and making sure we wouldn’t be in this situation only a few years in. Now whether it was the solar that is causing the damage or they assessed it wrong, they did a horrible job in one of those fields.
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Brian, over 1 month
I would not recommend this company. It’s been nothing more than a headache since having the panels installed. From not calculating enough panels and not even breaking even year over year, to leaks and having to threaten to sue for a minor repair. Now it’s 3 years into having their panels and I need my roof replaced and they want to charge to remove and reinstall when they had inspected the roof and said we were good to go for the install. It was nothing more than pushing the sale rather than doing the right thing and making sure we wouldn’t be in this situation only a few years in. Now whether it was the solar that is causing the damage or they assessed it wrong, they did a horrible job in one of those fields.
For more information about going solar near where you live, check out the following resources:
NYSERDA - NY SUN Smart Energy Loan Program