Last Updated: May 18, 2026 | Reviewed by: Dylan DeSantis, SolarMetric
Quick Answer
Solar panels in New York cost $2.77–$3.40 per watt, or $27,700–$34,000 for a typical 10 kW system before incentives. After New York’s 25% state tax credit (up to $5,000), most homeowners pay $22,700–$29,000. With electricity rates among the highest in the country — averaging $0.24–$0.30/kWh — payback periods run 7–10 years, and 25-year savings routinely top $40,000.
New York Solar Cost at a Glance (2026)
| System Size | Before Incentives | After NY State Tax Credit | Estimated Payback |
|---|---|---|---|
| 6 kW | $16,620–$20,400 | $12,465–$15,400 | 6–8 years |
| 8 kW | $22,160–$27,200 | $17,160–$22,200 | 7–9 years |
| 10 kW | $27,700–$34,000 | $22,700–$29,000 | 7–10 years |
| 12 kW | $33,240–$40,800 | $28,240–$35,800 | 8–11 years |
Cost per watt: $2.77–$3.40 (statewide average; NYC installers often run higher due to permitting complexity)
Note: The 30% federal solar tax credit (ITC) was eliminated for new residential installations effective January 1, 2026, by the One Big Beautiful Bill Act (signed July 4, 2025). The figures above reflect the New York 25% state tax credit only. See the NY incentives section below for what’s still available.
What Drives Solar Costs in New York
New York is an expensive state to install solar — not because panels cost more, but because of what surrounds them:
NYC and dense suburban markets add cost. Brooklyn, Queens, and Westchester homeowners typically pay $3.00–$3.40/watt. Permitting in New York City requires coordination with the Department of Buildings and Con Edison interconnection, which adds time and administrative cost. Installers price this in.
Upstate is cheaper. Homeowners in the Capital Region, Syracuse, and Buffalo typically see quotes at $2.77–$3.10/watt — closer to the national average — because permitting is simpler and competition among installers is higher.
Roof complexity matters. New York’s older housing stock — row houses, brownstones, flat roofs — often requires non-standard racking systems. Brooklyn SolarWorks, for example, specializes in flat-roof canopy installations designed specifically for NYC’s roofscape. Expect to pay a premium for non-standard mounting.
Battery storage adds $10,000–$15,000. If you want backup power (common in areas with Con Edison reliability concerns), a Tesla Powerwall 3 or Enphase IQ Battery 5P adds significantly to your upfront cost, but qualifies for an additional 25% NY state credit.
New York Solar Incentives (2026)
What’s Still Available
1. New York State Solar Tax Credit — 25%, up to $5,000
The most valuable remaining incentive for most New York homeowners. You claim 25% of your total installation cost as a credit against your New York State income tax, up to $5,000. Unlike the old federal credit, this one is available even if you sign a solar lease or PPA (as long as the agreement is at least 10 years). File using Form IT-255 with your state tax return.
2. Sales Tax Exemption
New York State exempts solar equipment and installation labor from state sales tax (4%). Most counties and New York City also waive local sales tax. On a $30,000 system, this saves roughly $1,200–$2,400 depending on your county.
3. Property Tax Exemption (15 years)
The added home value from your solar installation is fully exempt from property tax assessment for 15 years under RPTL Section 487. This applies automatically in most municipalities when your permit is issued. Some municipalities have opted out — check with your installer or assessor before assuming this applies.
4. NYC Solar Property Tax Abatement
New York City homeowners have an additional option: the NYC Solar Property Tax Abatement reduces your annual property tax by 7.5% of your system cost per year for four consecutive years (30% total over four years). This applies to systems placed in service through January 1, 2035, and stacks with the state tax credit. It’s separate from and in addition to the 15-year property tax exemption.
5. NY-Sun Megawatt Block Rebate (Limited Availability)
As of March 2026, the NY-Sun MW Block incentive for standard-income customers is closed in both the Con Edison and Upstate regions — the blocks were fully subscribed. Low-income households (≤80% Area Median Income) are still eligible for a $0.80/watt upfront rebate through NYSERDA. If you qualify, that’s $8,000 off a 10 kW system. Check eligibility at NYSERDA.ny.gov.
What’s Gone
Federal ITC (30%): Eliminated for residential solar installed on or after January 1, 2026. The One Big Beautiful Bill Act, signed July 4, 2025, ended the Section 25D credit with no phase-down. Systems installed and paid for in 2025 still qualified. Leases and PPAs remain indirectly eligible because the installer (as a commercial entity) may claim the 48E commercial credit and pass savings through lower monthly payments — ask your installer whether this is reflected in their lease pricing.
Net Metering in New York
New York offers full retail net metering — when your panels produce more than you use, excess electricity is credited to your account at the full retail rate (the same rate you pay when drawing from the grid). Credits roll over month-to-month and can be applied to future bills.
Con Edison customers in New York City and Westchester are currently on full retail net metering. With Con Ed’s residential rates running $0.25–$0.30+/kWh, this makes solar exports highly valuable.
National Grid customers in upstate New York and Long Island are also on full retail net metering.
One important caveat: Residential customers who interconnect after January 1, 2022 pay a monthly Customer Benefit Contribution (CBC) charge. The CBC is a small fixed fee designed to have solar customers contribute to grid maintenance costs. It does not eliminate net metering credits, but it reduces the net monthly bill savings slightly. Ask your installer for the exact CBC amount for your utility.
New York homeowners who interconnect in 2026 are locked into net metering terms for 20 years — significant long-term protection against future policy changes.
Is Solar Worth It in New York?
Verdict: Yes — especially in Con Edison territory.
New York’s high electricity rates are the single biggest driver of solar ROI. Con Edison customers in New York City and Westchester regularly pay $0.25–$0.30/kWh. At those rates, a 10 kW solar system generating 12,000–13,000 kWh/year is offsetting $3,000–$3,900 in annual electricity costs — even without the federal ITC.
For upstate homeowners, the math is more variable. Electricity rates from National Grid and other upstate utilities are lower (closer to $0.18–$0.22/kWh), which extends payback periods. Solar still makes financial sense in most cases, but the margin is thinner.
| Location | Avg Rate ($/kWh) | Peak Sun Hours | Est. Annual Savings (10 kW) | Est. Payback |
|---|---|---|---|---|
| New York City (Con Ed) | $0.28 | 4.1 | $3,352 | 6–8 years |
| Westchester (Con Ed) | $0.27 | 4.2 | $3,311 | 7–9 years |
| Long Island (PSEG LI) | $0.24 | 4.3 | $3,013 | 7–9 years |
| Capital Region (National Grid) | $0.20 | 4.0 | $2,336 | 9–11 years |
| Buffalo/Western NY (National Grid) | $0.18 | 3.9 | $2,048 | 10–12 years |
Annual savings calculation: 10 kW × peak sun hours × 365 days × 0.80 efficiency × local rate. Peak sun hours vary by location (NYC 4.1, Westchester 4.2, Long Island 4.3, Capital Region 4.0, Western NY 3.9). Rates sourced from EnergySage and NYSERDA data (May 2026).
25-year savings: After a 10 kW system in NYC costs $22,700–$29,000 post-state-credit, homeowners stand to save $55,000–$75,000 over 25 years assuming 3% annual electricity rate increases — a return that has only improved as Con Edison rates have risen steadily.
Top Solar Companies in New York (2026)
These four installers consistently earn top ratings from New York homeowners and are worth getting quotes from:
1. Brooklyn SolarWorks — Best for NYC flat roofs
Brooklyn SolarWorks has completed 3,000+ installations in New York City since 2015, specializing in the flat-roof canopy systems that NYC’s rooftops require. Their all-in permit-to-interconnection service is well suited to the complexity of NYC DOB and Con Edison approvals. Website: brooklynsolarworks.com
2. EmPower Solar — Best for Long Island
Founded in 2003, EmPower Solar is the leading installer in Nassau and Suffolk counties, with over 50 MW installed. Particularly strong for homeowners navigating PSEG Long Island interconnection and the NY-Sun low-income rebate program. Website: empower-solar.com
3. Trinity Solar — Best for Downstate + Mid-Hudson Valley
One of the Northeast’s largest installers (125,000+ roofs across nine states), Trinity has a strong New York presence from Long Island through the Hudson Valley and into the Capital Region. They offer $0-down financing options. Website: trinitysolar.com
4. Sunrun — Best for lease/PPA financing
Sunrun is the largest residential solar company in the U.S. and operates throughout New York. Their lease and PPA products are worth comparing now that the federal ITC is gone for buyers — Sunrun claims the commercial 48E credit and can pass savings through lower lease payments. Website: sunrun.com
Get multiple quotes. New York homeowners who compare 3+ quotes through platforms like EnergySage typically save $3,000–$5,000 on the same system. Installer pricing in New York varies more than in most states.
How to Claim the New York State Solar Tax Credit
- Install your solar system with a NABCEP-certified installer and receive your final inspection certificate.
- Obtain documentation — your installer should provide a final invoice with the total installed cost.
- Complete Form IT-255 (Claim for Solar Energy System Equipment Credit) when filing your New York State income tax return.
- Enter 25% of your qualified expenditure, up to $5,000, on the applicable line of Form IT-255.
- Carry forward any excess. If your credit exceeds your tax liability in the year of installation, the unused portion carries forward for up to 5 years.
NYC homeowners claiming the Solar Property Tax Abatement must file a separate application with the NYC Department of Finance — your installer can typically assist with this paperwork.
Frequently Asked Questions
Is solar worth it in New York in 2026 without the federal tax credit?
Yes, particularly in Con Edison territory. New York’s 25% state tax credit, full retail net metering, and some of the highest electricity rates in the country keep solar returns strong even without the federal ITC. Con Ed customers typically recover their investment in 6–8 years.
What happened to the federal solar tax credit?
The 30% federal residential solar tax credit (Section 25D ITC) was eliminated by the One Big Beautiful Bill Act, signed July 4, 2025. It expired for systems placed in service after December 31, 2025. No phase-down applies — systems installed in 2026 receive no federal credit.
How much does solar save per month in New York?
A typical 8–10 kW system offsets 85–100% of electricity usage for most New York homes. At Con Edison’s current rates of $0.25–$0.30/kWh, that’s $200–$350/month in bill savings. Upstate homeowners at $0.18–$0.22/kWh typically save $130–$220/month.
Do I still pay an electricity bill with solar panels in New York?
Yes. You’ll still have a monthly connection charge from your utility, and you’ll pay for electricity on days your panels don’t produce enough (evenings, cloudy days, winter months). Net metering credits offset most of this, but a $10–$30 monthly minimum bill is normal. The Customer Benefit Contribution (CBC) adds a small additional charge for post-2022 installs.
Does New York have a solar property tax exemption?
Yes. New York exempts the added home value from solar from property tax assessment for 15 years under RPTL Section 487. NYC homeowners also qualify for the Solar Property Tax Abatement — a 30% total abatement (7.5%/year for 4 years) available through 2035. Some municipalities have opted out of the 15-year exemption; verify with your assessor.
What’s the best solar company in New York City specifically?
Brooklyn SolarWorks is the most experienced NYC-specific installer, with 3,000+ city installations and specialized expertise in flat-roof systems. Sunrun and Trinity Solar are also available throughout the five boroughs. Get at least three quotes before committing.
Methodology and Sources
Installation cost data reflects EnergySage New York marketplace quotes (May 2026) and SolarReviews pricing data. Electricity rates are sourced from NYSERDA’s Monthly Average Retail Price data and EnergySage utility bill analysis (May 2026). Peak sun hours from NREL PVWatts data for NYC (4.1), Westchester (4.2), Long Island (4.3), Capital Region (4.0), and Western NY (3.9). Payback periods calculated using verified system cost, post-credit net cost, and annual savings formula (kW × peak sun hours × 365 × 0.80 efficiency × local rate). NY-Sun availability status confirmed via NYSERDA.ny.gov as of March 2026.
External sources:
– NYSERDA NY-Sun Program
– NYSERDA Monthly Average Electricity Prices
– EnergySage New York Solar Data
– Con Edison Distributed Generation Tariffs
– NYC Department of Finance – Solar Tax Abatement
– NY Tax Law RPTL Section 487
Get Free Solar Quotes in New York
Ready to see what solar costs for your specific home? Compare quotes from New York’s top-rated installers.
Comparing 3+ quotes is the single best way to save money on solar in New York — installer pricing varies by $3,000–$5,000 for the same system.
For more context on solar costs and incentives, see our Solar Panel Cost Guide, Is Solar Worth It? guide, and Best Solar Companies rankings.