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. CBC charges vary with your utility company, so a customer going solar with National Grid will have a different charge than an NYSEG solar customer or Con Edison customer.
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.
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Prices based on a 8.6kW system, after 30% federal tax credit
108 solar companies in New York provide pricing on SolarReviews. Here are the best rated companies near you.
4.86 121 Reviews
Burkholder Mfg. Inc., over 1 month
This is my 3rd solar system. I totaly trust Paradise Energy with the whole project. Pretty much signed the papers and let them run with it. The whole project was well managed and I was well informed. We enjoy working with Paradise.
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Average cost (5kW system)
$16,000 ($3.20 per watt)
Burkholder Mfg. Inc., over 1 month
This is my 3rd solar system. I totaly trust Paradise Energy with the whole project. Pretty much signed the papers and let them run with it. The whole project was well managed and I was well informed. We enjoy working with Paradise.
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.
4.80 93 Reviews
Kelly, over 1 month
Thanks to the SunBlue team for working with us so patiently, always responding to our questions and taking the lead to navigate the approvals needed. Very happy with our communications and the end result looks amazing. I love that we can track our savings and power generation through an app.
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Average cost (5kW system)
$17,150 ($3.43 per watt)
Kelly, over 1 month
Thanks to the SunBlue team for working with us so patiently, always responding to our questions and taking the lead to navigate the approvals needed. Very happy with our communications and the end result looks amazing. I love that we can track our savings and power generation through an app.
4.78 241 Reviews
Paul Gerhard Fritz, 2 weeks ago
I rate my experience with Harvest Solar as outstanding; 5 star all the way including 5 stars for Tyler Cirincione, the Harvest Solar, representative who worked with me throughout the project. He exhibited numerous qualities that warrant special commentary given his superior performance and excellent customer service. He was honest; transparent about the various positives and negatives of different courses of action; exhibited great of knowledge about solar technology which he shared in an open informative manner; was highly responsive to my questions and concerns; appeared earnest with an authentic desire to do a great job; and finally took a complicated multi variable project with many gears and wheels and simplified it into manageable parts ferrying me through each task while being kind and, importantly, patient with me being responsive to all my needs. I thank everyone involved including the team that replaced my roof and finally the Harvest team who installed the solar panels themselves.
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Paul Gerhard Fritz, 2 weeks ago
I rate my experience with Harvest Solar as outstanding; 5 star all the way including 5 stars for Tyler Cirincione, the Harvest Solar, representative who worked with me throughout the project. He exhibited numerous qualities that warrant special commentary given his superior performance and excellent customer service. He was honest; transparent about the various positives and negatives of different courses of action; exhibited great of knowledge about solar technology which he shared in an open informative manner; was highly responsive to my questions and concerns; appeared earnest with an authentic desire to do a great job; and finally took a complicated multi variable project with many gears and wheels and simplified it into manageable parts ferrying me through each task while being kind and, importantly, patient with me being responsive to all my needs. I thank everyone involved including the team that replaced my roof and finally the Harvest team who installed the solar panels themselves.
4.74 97 Reviews
Joe Roig, 1 week ago
John Wasserman was very helpful in providing the information needed to make my decision. I decided to go with Solar with no regrets.
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Joe Roig, 1 week ago
John Wasserman was very helpful in providing the information needed to make my decision. I decided to go with Solar with no regrets.
4.73 662 Reviews
Joshua Bentley, 4 weeks ago
They worked with me so professionally. The only slowdowns were on consumer end and they were so patient and polite. Tulsa shine solar office. Hmm. ;) Excellent work lads and lassies.
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Joshua Bentley, 4 weeks ago
They worked with me so professionally. The only slowdowns were on consumer end and they were so patient and polite. Tulsa shine solar office. Hmm. ;) Excellent work lads and lassies.
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.
4.70 66 Reviews
Mike K, over 1 month
Very happy with this company, everything went smoothly. Would recommend to anyone.
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Mike K, over 1 month
Very happy with this company, everything went smoothly. Would recommend to anyone.
4.69 613 Reviews
Kevin E, 1 week ago
call was clear and covered all my concerns
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Kevin E, 1 week ago
call was clear and covered all my concerns
4.66 32 Reviews
Bill Wachob, over 1 month
Rochester Solar Technologies is a wonderful company to work with, from the owner (Shawn Lessourd) to the amazingly efficient and responsive office staff (Christy Brown/Wolfgang), to the workmen themselves. This has been a most satisfying experience from beginning to end!<br />Contractor charged the net amount after the NYSERTA incentive, but not after the Federal and State tax incentives. These were able to be financed by Enerbank through a program by the maker of the solar panels (Sunpower).
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Bill Wachob, over 1 month
Rochester Solar Technologies is a wonderful company to work with, from the owner (Shawn Lessourd) to the amazingly efficient and responsive office staff (Christy Brown/Wolfgang), to the workmen themselves. This has been a most satisfying experience from beginning to end!<br />Contractor charged the net amount after the NYSERTA incentive, but not after the Federal and State tax incentives. These were able to be financed by Enerbank through a program by the maker of the solar panels (Sunpower).
For more information about going solar near where you live, check out the following resources:
NYSERDA - NY SUN Smart Energy Loan Program