Federal solar credit ended Dec 31, 2025
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Solar costs · New York

Solar Panel Cost in New York

Fact-checked by Sorted & Saved data desk
Updated Data verified Nov 5, 2026

A typical New York home uses 571 kWh a month[1] of electricity. Covering that with solar takes a system of about 5.3 kW est.[1,2], which costs roughly $17,500 to $24,000 est.[1,2,3] before incentives at the state's median installed price. With New York's average residential price of 29.26¢ per kWh[4], our model puts payback at about 8 years est.[1,2,3,4,5]. Your quote, roof and utility plan will move these numbers, so treat them as a starting point.

On this page [ 8 ]

New York solar at a glance

Average electricity price29.26¢/kWh[4]Jan–Aug 2026 average (preliminary)
Average home use571 kWh/mo[1]2024 average
Solar output per kW1,291 kWh/yr[2]PVWatts estimate for New York City
Median installed price$3.90/W[3]Estimate, before incentives
Typical system5.3 kWSized to cover 100% of use
Typical price$20,700Estimate, before incentives
Year-1 savings$1,920Estimate
Payback8 yearsEstimate, cash purchase

Estimates use the inputs above and the assumptions in our methodology: Con Edison credits exported energy at the retail rate (Phase One NEM (Rider R) with Customer Benefit Contribution). Solar customers also pay $1.29 per kW of panels a month, included in the estimates. Prices rise 2.5% a year; panels lose 0.5% a year.

Solar cost in New York by system size

Same assumptions as the typical home above; only the system size changes. Prices are the state median before incentives and include the incentives our calculator applies by default in New York.

SystemPrice before incentives[3]After incentiveskWh in year 1[2]Year-1 savings[4][5]Payback (years)
4 kW$15,600$11,7005,160$1,4508
6 kW$23,400$18,4007,750$1,9109
8 kW$31,200$26,20010,330$1,88012
10 kW$39,000$34,00012,910$1,85015
12 kW$46,800$41,80015,490$1,82018

Incentives that lower the price in New York

Federal · tax creditEnding soon

Business credit for leased and PPA systems (48E)

Claimed by the system owner, not the homeowner; solar must begin construction by July 4, 2026 or be in service by December 31, 2027[6]

If a company owns the panels on your roof (a lease or power purchase agreement), that company may claim the business clean electricity investment credit and can reflect it in your price. You cannot claim it yourself.

Who
Third-party-owned systems (leases and PPAs). Ask the provider whether the price assumes this credit.
Deadline
December 31, 2027
Checked
November 5, 2026
State · tax creditAvailable

NY State Solar Energy System Equipment Credit (Tax Law 606(g-1))

25% of qualified solar equipment expenditures, up to $5,000; non-refundable; excess carries forward 5 years[7]

Confirmed on tax.ny.gov/pit/credits/solar_energy_system_equipment_credit.htm (that page says the credit is 25%, capped at $5,000, non-refundable, and can be carried over for up to five years, on Form IT-255). The tax.ny.gov page was last updated 2019-12-16. In the statute text, (g-1) mentions storage only in an exclusion ('recreational facility or equipment as a storage medium'). Battery storage is not added to this credit.

Who
Solar equipment that is bought, leased, or used under a power purchase agreement of 10+ years and installed at the taxpayer's principal residence in New York. Claimed on Form IT-255.
Maximum
$5,000
Deadline
No sunset in statute text
Checked
November 5, 2026
State · rebateAvailable

NYSERDA Residential Energy Storage Incentive (market-rate, Inclusive Storage Incentive, and Long Island)

Rest of State: $200/kWh (Block 1). Con Edison: $250/kWh (Block 1). Inclusive Storage Incentive (ISI): $450/kWh (Block 1). PSEG Long Island single-family: $250/kWh (Block 2). Paid on up to 25 kWh per home.[8]

Rates and budgets were read from portal.nyserda.ny.gov/Core_BlockChart_Page?programName=Residential Storage Incentive Program and PV_BlockChartV2_Page (Long Island: 'Current Incentive : $250/kWh'). The quote is from the Residential and Retail Storage Incentives page. Rest of State Block 1 is nearly exhausted. ISI eligibility details (DAC tract, <80% AMI, affordable housing) come from search snippets of NYSERDA webinar documents I did not open, so they are left out of this entry.

Who
Standalone or solar-paired home batteries installed by a NYSERDA-approved storage contractor. Incentives are paid on up to 25 kWh. ISI is the income- or location-qualified tier. Long Island projects apply through the NY-Sun Long Island Single-Family Residential Storage Incentive.
Deadline
First-come, first-served by block. Remaining budget on 2026-11-05: Rest of State Block 1 $321,550 left of $5.0M (Block 2 at $175/kWh not yet open); Con Edison Block 1 $5,507,425 left of $6.25M; ISI…
Checked
November 5, 2026
State · tax exemptionAvailable

Real property tax exemption for solar (RPTL 487)

For 15 years, the added assessed value from the solar system is exempt from property tax[9]

The 15-year term and opt-out rule are in the statute and in the tax.ny.gov Assessor Manual (updated 2026-02-10): https://www.tax.ny.gov/research/property/assess/manuals/vol4/pt1/sec4_01/sec487.htm. Opt-out list: https://www.tax.ny.gov/research/property/legal/localop/487opt.htm (updated 2026-10-27). In NYC, NYSERDA says the city's abatement (RPTL 499-bbbb) is offered instead of this exemption.

Who
Solar (and wind, farm waste, storage, etc.) systems built before 1/1/2030, outside jurisdictions that have opted out. The owner files Form RP-487 with the local assessor.
Deadline
December 31, 2029
Checked
November 5, 2026

All New York incentives, including utility and local programs →

How New York utilities credit your solar

Most New York homeowners who go solar are on Phase One net metering: exports offset purchases at the retail rate and roll over month to month. Systems interconnected after 2021 pay a monthly Customer Benefit Contribution (CBC) charge per kW of solar. PSEG Long Island, run for the Long Island Power Authority, has its own similar rules.[10]

UtilityExport policyExport creditAvg. residential priceMonthly basic charge
Con EdisonPhase One NEM (Rider R) with Customer Benefit ContributionRetail rate (net metering)[5]35.66¢ per kWh[1]$21.00[5]
NYSEGPhase One NEM with Customer Benefit ContributionRetail rate (net metering)[10]18.32¢ per kWh[1]$19.00[11]
National GridPhase One NEM (PSC 220 Rule 40.1) with Customer Benefit ContributionRetail rate (net metering)[12]17.22¢ per kWh[1]$19.00[12]
PSEG LILIPA net metering for Mass Market projects (post-2018) with Customer Benefit ContributionRetail rate (net metering)[13]24.57¢ per kWh[1]$17.03[13]
RG&EPhase One NEM (PSC 19 Rule 26.A) with Customer Benefit ContributionRetail rate (net metering)[14]18.76¢ per kWh[1]$23.00[14]

Full New York net metering and export-credit rules →

FAQ

Frequently asked questions

How much do solar panels cost in New York?

At the state median installed price of $3.90 per watt est.[3], a 5.3 kW est.[1,2] system that covers a typical home's use costs about $20,700 est.[1,2,3] before incentives. Quotes vary with roof, equipment and installer.

How long does solar take to pay for itself in New York?

For a cash purchase at the state's average electricity price of 29.26¢ per kWh[4], our model estimates about 8 years est.[1,2,3,4,5]. Your utility's export credit and rate plan matter a lot; see the export-credit table above.

Is there still a federal solar tax credit?

Not for homeowners who buy. The Federal Residential Clean Energy Credit (25D)[15] does not apply to systems whose installation is completed after December 31, 2025. Leased and PPA systems are different: the company that owns the system may still claim a business credit.

sources

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Every number on this page links to one of these sources. Dates show when we last checked each one.

  1. EIA Electric Sales, Revenue, and Average Price 2024, Table 5A: Residential average monthly bill by stateeia.gov · checked Nov 5, 2026
  2. NREL/NLR PVWatts v8 (1 kW-DC, fixed roof mount, 20° tilt, south-facing, 14% losses, TMY weather)pvwatts.nlr.gov · checked Nov 5, 2026
  3. U.S. Distributed Solar and Storage 2026 Data Update (Barbose, Darghouth, O'Shaughnessy, Forrester), Berkeley Labeta-publications.lbl.gov · checked Nov 5, 2026
  4. EIA Electric Power Monthly, Table 5.6.B: Average price of electricity by state, year-to-date (August 2026, preliminary)eia.gov · checked Nov 5, 2026
  5. Con Edison: Phase One NEM (Rider R) with Customer Benefit Contributionconed.com · checked Nov 5, 2026
  6. Public Law 119-21 - Sec. 70513(a) and (g)(5) (48E); Sec. 70512(a) and (l)(4) (45Y)govinfo.gov · checked Nov 5, 2026
  7. NY Tax Law 606(g-1) (NYS Open Legislation)nysenate.gov · checked Nov 5, 2026
  8. NYSERDA Residential Energy Storage Incentive Dashboardnyserda.ny.gov · checked Nov 5, 2026
  9. NY Real Property Tax Law 487nysenate.gov · checked Nov 5, 2026
  10. 2026 residential CBC rates (Phase One NEM, $/kW DC per month)nyserda.ny.gov · checked Nov 5, 2026
  11. NYSEG residential tariffwww2.dps.ny.gov · checked Nov 5, 2026
  12. National Grid: Phase One NEM (PSC 220 Rule 40.1) with Customer Benefit Contributionwww2.dps.ny.gov · checked Nov 5, 2026
  13. PSEG LI: LIPA net metering for Mass Market projects (post-2018) with Customer Benefit Contributionlipower.org · checked Nov 5, 2026
  14. RG&E: Phase One NEM (PSC 19 Rule 26.A) with Customer Benefit Contributionwww2.dps.ny.gov · checked Nov 5, 2026
  15. IRS FS-2025-05: FAQs for modification of sections 25C, 25D, 25E, 30C, 30D, 45L, 45W, and 179D under Public Law 119-21 (OBBB)irs.gov · checked Nov 5, 2026

State data last re-checked November 5, 2026.