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
111 solar companies in New York provide pricing on SolarReviews. Here are the best rated companies near you.
4.84 214 Reviews
mcpja01, over 1 month
I just received my first electric bill after 1 full month on the solar system designed and installed by Harvest Power Solar. My total kwh billed was 0, and this is in a month when the sun is low in the sky. The total experience was a pleasure, Mark Lieberman, and the staff at Harvest Power were professional, attentive, and very helpful. Mark designed a system that uses all the best components and technology to meet my families current and future electrical needs at a cost that was lower then my average monthly electric bill (with current incentives). Harvest Power also took care of all the paper work, and the installers were polite, and neat, they actually asked me how I would prefer the wiring to be run, and if I was OK with the location selected for the controller. I can't express how satisfied I am with the company and work done by Harvest Power. So glad I chose to go with a local company instead of a national conglomerate. 5 stars all day, all categories. Highly recommend, what a gr8 experience. Jim
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mcpja01, over 1 month
I just received my first electric bill after 1 full month on the solar system designed and installed by Harvest Power Solar. My total kwh billed was 0, and this is in a month when the sun is low in the sky. The total experience was a pleasure, Mark Lieberman, and the staff at Harvest Power were professional, attentive, and very helpful. Mark designed a system that uses all the best components and technology to meet my families current and future electrical needs at a cost that was lower then my average monthly electric bill (with current incentives). Harvest Power also took care of all the paper work, and the installers were polite, and neat, they actually asked me how I would prefer the wiring to be run, and if I was OK with the location selected for the controller. I can't express how satisfied I am with the company and work done by Harvest Power. So glad I chose to go with a local company instead of a national conglomerate. 5 stars all day, all categories. Highly recommend, what a gr8 experience. Jim
4.83 95 Reviews
MichaelsA, 3 days ago
Paradise Energy Solutions is the place to start looking for a knowledgeable, professional, customer-service-friendly solar energy installer. After doing your due diligence and considering several bids, Paradise Energy will likely not be the least expensive. Whatever the price difference, the customer communications, quality of service, workmanship, deft navigation of the local permit bureaucracy, and follow-up monitoring are worth every cent. You will not regret using them for your solar installation. In addition, you will be very happy with your electric utility bills. Thank you Sheldon, Zane, Jeff, Tim, Michelle, and the entire Paradise Energy Solutions team for a great job on our 10.7 kW system.
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Average cost (5kW system)
$16,000 ($3.20 per watt)
MichaelsA, 3 days ago
Paradise Energy Solutions is the place to start looking for a knowledgeable, professional, customer-service-friendly solar energy installer. After doing your due diligence and considering several bids, Paradise Energy will likely not be the least expensive. Whatever the price difference, the customer communications, quality of service, workmanship, deft navigation of the local permit bureaucracy, and follow-up monitoring are worth every cent. You will not regret using them for your solar installation. In addition, you will be very happy with your electric utility bills. Thank you Sheldon, Zane, Jeff, Tim, Michelle, and the entire Paradise Energy Solutions team for a great job on our 10.7 kW system.
4.81 102 Reviews
James V, over 1 month
I have had solar for a year now and since my first contact with Matt with Empower has been great. Matt wasn’t a college kid looking to make a sale. He has knowledge of the entire process and was not push at all. The install team worked with my needs to get the system exactly the why I wanted it on the roof and the new 200 amp electric panel. After install I had 2 minor issues that the support team helped with right away. It was a great experience all around.
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James V, over 1 month
I have had solar for a year now and since my first contact with Matt with Empower has been great. Matt wasn’t a college kid looking to make a sale. He has knowledge of the entire process and was not push at all. The install team worked with my needs to get the system exactly the why I wanted it on the roof and the new 200 amp electric panel. After install I had 2 minor issues that the support team helped with right away. It was a great experience all around.
4.81 262 Reviews
Andrew, over 1 month
I had my second install with Sunation yesterday at my new house. The team during and before the install were very helpful, professional and courteous. Gina was great! She was always there to answer my questions in detail through out the entire process. Anytime I emailed her I always received a professional and courteous response! During the install Joe did a great job! Joe was also at my first install and I knew I was in good hands when I saw he was part of the crew! Everyone in this company from Rohan my sales representative to Gina to Joe to Tammy truly appreciates their customers! They make the process of going solar as stress free as possible! If you are thinking of going solar go with Sunation! You will defiantly appreciate their quality of work and attention to Customer Service! Thank you Sunation for your attention to quality work and excellent Customer Service!
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Average cost (5kW system)
$13,750 ($2.75 per watt)
Andrew, over 1 month
I had my second install with Sunation yesterday at my new house. The team during and before the install were very helpful, professional and courteous. Gina was great! She was always there to answer my questions in detail through out the entire process. Anytime I emailed her I always received a professional and courteous response! During the install Joe did a great job! Joe was also at my first install and I knew I was in good hands when I saw he was part of the crew! Everyone in this company from Rohan my sales representative to Gina to Joe to Tammy truly appreciates their customers! They make the process of going solar as stress free as possible! If you are thinking of going solar go with Sunation! You will defiantly appreciate their quality of work and attention to Customer Service! Thank you Sunation for your attention to quality work and excellent Customer Service!
4.76 144 Reviews
Dave and Eva, 1 week ago
From initial site visit to install and to my recent need for help on the data collection software, Sun Common has been great! There service team was quick to respond and kept up the communication until the issue was resolved.
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Dave and Eva, 1 week ago
From initial site visit to install and to my recent need for help on the data collection software, Sun Common has been great! There service team was quick to respond and kept up the communication until the issue was resolved.
4.72 77 Reviews
Mario D, over 1 month
SunBlue was professional. The setup was quick and professionally done. I'm an electrical engineer, so I was checked the work done - and was quite happy with all of it. Their quote was priced competitively, and the team is very friendly and easy to work with. They also did a great job handling to city bureaucracy, so that process was very hands off for me. Sales agent also had great hands on knowledge of the system and tech (not common among solar sales people), and also understood the financials involved.
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Average cost (5kW system)
$17,150 ($3.43 per watt)
Mario D, over 1 month
SunBlue was professional. The setup was quick and professionally done. I'm an electrical engineer, so I was checked the work done - and was quite happy with all of it. Their quote was priced competitively, and the team is very friendly and easy to work with. They also did a great job handling to city bureaucracy, so that process was very hands off for me. Sales agent also had great hands on knowledge of the system and tech (not common among solar sales people), and also understood the financials involved.
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.
4.71 129 Reviews
Lois A, 2 weeks ago
We recently had solar panels installed on our home. Our salesman, Drew Divittorio, was outstanding every step of the way. He clearly explained all of our options and answered every question clearly and throughly. He was very knowledgeable and patient with our many inquiries. If you are considering Solar, ask for Drew to be our salesman!
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Lois A, 2 weeks ago
We recently had solar panels installed on our home. Our salesman, Drew Divittorio, was outstanding every step of the way. He clearly explained all of our options and answered every question clearly and throughly. He was very knowledgeable and patient with our many inquiries. If you are considering Solar, ask for Drew to be our salesman!
4.68 63 Reviews
Andy C, over 1 month
Cory's crew installed an array for us at the end of September. The crew was very respectful and courteous and did an absolutely great job, couldnt be happier. The system passed inspection without any issues and I would recommend the company to anyone interested!
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Andy C, over 1 month
Cory's crew installed an array for us at the end of September. The crew was very respectful and courteous and did an absolutely great job, couldnt be happier. The system passed inspection without any issues and I would recommend the company to anyone interested!
For more information about going solar near where you live, check out the following resources:
NYSERDA - NY SUN Smart Energy Loan Program