Summary of New York solar incentives 2021
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 on an 1,800% growth in distributed solar installations since 2011 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!
On this page, you can:
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Learn what solar incentives are available to New York homeowners
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See what New York solar incentives you qualify for based on your utility company and city
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Find out how much these incentives and/or New York solar tax credits will reduce your cost to go solar and add batteries
Federal solar investment tax credit
The federal solar investment tax credit will have the biggest impact on the cost you will face to go solar in New York
This perk is commonly known as the ITC, short for “Investment Tax Credit”. If you install your photovoltaic system in 2020, the federal tax credit is 26% of the cost of your solar panel system. This is 26% 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 26% = $5,200.
The federal tax credit falls to 22% at the end of 2022.
Net energy metering in New York
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 are currently required to provide net metering services for residential systems up to 25 kW. Any net excess electricity generation is generally credited to your next bill at retail rate. However, for residential solar in New York, excess generation is reconciled annually at the avoided-cost rate.
A recent update to the policy requires utility companies to give you the opportunity (when you first install and connect your system) to choose when this pay period ends to avoid cashing out at a disadvantageous time. Pretty sweet, huh?
In 2017, the New York Public Service Commission issued an order regarding the future of net metering in the state. The order outlines the move from traditional net metering into a Value of Distributed Energy Resource (VDER) tariff that accurately values and compensates distributed energy resources.
You’ll get to avoid VDER for another year, as the deadline to net meter for the next 20 years has been extended for solar installations which are completed before January, 2022.
After 2020, expect a 20 year contract, where your Net Excess Generation (NEG) accrues until the end of an annual period, then at the end of each annual billing cycle you’ll be paid at the utility's avoided-cost rate for any unused NEG.
This will be lower than full retail net metering, so we strongly recommend going solar in 2020 here to lock in your net metering agreement!
New York solar rebates
Through the NY-Sun PV Incentive Program, New York residents statewide are looking at rebate rates of $300-$350 per kW on solar installations up to 25 kW. That means you can expect a rebate of $1,800-$2,100 on a 6-kW system. Be aware, however, that these numbers are on the decline 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!
Low income addition to the NY Sun PV incentive
If you live in a low-moderate income household, the NY-Sun Program passed new rules to make solar more affordable for households that make up to 80% of their county's median income.
For example, in Westchester County, a family of 4 with an income of less than $84,560 will get $800 per kilowatt off the cost of their solar system. For an average 6-kW installation, that amounts to $4,800 savings off the bat!
More funding and an extension through 2025 have been requested for the program. We’ve reached out to our contacts at NYSERDA for more information, we’ll provide an update here when we get it.
New York state solar tax credit
In addition to the 26% 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, 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.
Property and sales tax exemptions
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, the addition of solar panels to your home is exempt from property tax increases for a solid fifteen years.
That is despite the fact that you’ll be adding roughly 20 times your annual electricity bill savings to your property value. In the case of our 6-kW example, that adds up to about $28,000 (~20 times your annual electricity savings of $1,400).
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 upfront.
New York energy storage incentive
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 early 2021, 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.
Cost of solar panels in your part of New York after all applicable solar incentives
Showing data for:
Prices based on a 8.6kW system, after 26% federal tax credit
Solar prices near you
Payback period
4.7-5.7 years
Net profit (savings less system cost)
$51,299-$62,699
Average size system installed in NY in 2021
8.6kW
Solar panel cost calculator
Best 10 solar companies in New York
99 solar companies in New York provide pricing on SolarReviews. Here are the best rated companies near you.
4.88 201 Reviews
Latest review
W J, over 1 month
Was referred to by a friend and spoke Salesman John Merkent. We agreed on a time to meet to discuss the benefits of an installation of a solar system. At the meeting, in a clear and simple manner, he explained what the company would be able to produce in energy, the financing options if needed and the length of time needed for installation. We agreed on the project, signed a contract and a date was set for installation. The Harvest Power Staff filed all necessary permits for us only requiring a signature from us, here and there, to keep the ball rolling. On the installation days (most systems are installed in one day and we needed two for we had a little extra work done) the Crew showed up on time and were respectful in the behavior to us and our property. They installed our system using some of latest, high quality products and left the property each day as they found it, totally clean. In the end we highly recommend Harvest Power LLC for whenever we had a question, we were able to get a hold of someone before and after the project was finished, Salesman John Merkent even gave us his personal cell number to ensure this and eventhough this is business they treated us like family.
Read more
Latest review
W J, over 1 month
Was referred to by a friend and spoke Salesman John Merkent. We agreed on a time to meet to discuss the benefits of an installation of a solar system. At the meeting, in a clear and simple manner, he explained what the company would be able to produce in energy, the financing options if needed and the length of time needed for installation. We agreed on the project, signed a contract and a date was set for installation. The Harvest Power Staff filed all necessary permits for us only requiring a signature from us, here and there, to keep the ball rolling. On the installation days (most systems are installed in one day and we needed two for we had a little extra work done) the Crew showed up on time and were respectful in the behavior to us and our property. They installed our system using some of latest, high quality products and left the property each day as they found it, totally clean. In the end we highly recommend Harvest Power LLC for whenever we had a question, we were able to get a hold of someone before and after the project was finished, Salesman John Merkent even gave us his personal cell number to ensure this and eventhough this is business they treated us like family.
4.85 64 Reviews
Latest review
Honeyrun Farm, over 1 month
We ran into Sheldon Stutzman at the Farm Science Review. He was open and friendly, able to answer all our questions. A few years later, I had a barn in place and we were ready for solar. So we went with Paradise.
Read more
Average cost (5kW system)
$16,000 ($3.20 per watt)
Latest review
Honeyrun Farm, over 1 month
We ran into Sheldon Stutzman at the Farm Science Review. He was open and friendly, able to answer all our questions. A few years later, I had a barn in place and we were ready for solar. So we went with Paradise.
4.80 119 Reviews
Latest review
Eric, 4 weeks ago
My experience with Long Island Power has been superb from start to finish. At every stage of the process they gave clear explanations of what to expect, what options were available and when things could be expected to happen. They met every deadline, always showed up on time and were totally professional and courteous when they were on my site. My system has been up and running for several weeks now, and it performing just as predicted. I highly recommend this company for your solar energy needs.
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Latest review
Eric, 4 weeks ago
My experience with Long Island Power has been superb from start to finish. At every stage of the process they gave clear explanations of what to expect, what options were available and when things could be expected to happen. They met every deadline, always showed up on time and were totally professional and courteous when they were on my site. My system has been up and running for several weeks now, and it performing just as predicted. I highly recommend this company for your solar energy needs.
4.80 51 Reviews
Latest review
Long Beach family, over 1 month
We were very satisfied with our experience with New York Solar Franklin explained exactly how the project would work. Installers were professional and left the work area spotless. We received our our check from government as promised. It didn’t cost us any money.
Read more
Latest review
Long Beach family, over 1 month
We were very satisfied with our experience with New York Solar Franklin explained exactly how the project would work. Installers were professional and left the work area spotless. We received our our check from government as promised. It didn’t cost us any money.
4.80 255 Reviews
Latest review
Carolynn Santangelo, 2 weeks ago
I learned so much about the entire process. SUNation made it easy!
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Average cost (5kW system)
$13,750 ($2.75 per watt)
Latest review
Carolynn Santangelo, 2 weeks ago
I learned so much about the entire process. SUNation made it easy!
4.71 80 Reviews
Latest review
JES, 1 week ago
Empower was an attentive and responsive partner. Although the supply chain issues from the pandemic slowed things down, the installation of the solar panels proceeded quickly with the installation team being friendly and very experienced and we are helping power the grid! I look forward to our batteries arriving next.
Read more
Latest review
JES, 1 week ago
Empower was an attentive and responsive partner. Although the supply chain issues from the pandemic slowed things down, the installation of the solar panels proceeded quickly with the installation team being friendly and very experienced and we are helping power the grid! I look forward to our batteries arriving next.
4.71 26 Reviews
Latest review
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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Latest review
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 71 Reviews
Latest review
Beth B, 3 days ago
I had been looking for a solar company to install in Connecticut. I had done my research and hired another company who did not follow through. I was then referred to Chris Hale at Sunblue energy and he and Jonathan were excellent. My system was installed ahead of schedule but it is not running yet due to Eversource. When we did a trial run, we were producing an excellent amount of energy and we can't wait to turn the system on. Furthermore, when we were deciding on which panels, Chris was very honest about which made sense and were cost effective since we have a big roof. I highly recommend Sunblue
Read more
Average cost (5kW system)
$17,150 ($3.43 per watt)
Latest review
Beth B, 3 days ago
I had been looking for a solar company to install in Connecticut. I had done my research and hired another company who did not follow through. I was then referred to Chris Hale at Sunblue energy and he and Jonathan were excellent. My system was installed ahead of schedule but it is not running yet due to Eversource. When we did a trial run, we were producing an excellent amount of energy and we can't wait to turn the system on. Furthermore, when we were deciding on which panels, Chris was very honest about which made sense and were cost effective since we have a big roof. I highly recommend Sunblue
4.67 35 Reviews
Latest review
Bill Henry, over 1 month
Hi my name is Bill Henry, I am a Renewable Energy Advocate. Our home was one of the first in Erie County NY to be powered by Solar PV back in 2007. The Company that installed it was Solar Liberty. I chose to use them back then because they were the only local company in this area and I felt that was important. The system that was installed has worked flawlessly for over 12 years with only 1 minor warranty problem in which I called and Solar Liberty replaced the defect panel the next day! This company is remarkable to deal with. In 2019 we decided to add more solar panels to our system because we intend to charge an electric car in the future. After once again checking out other solar installers we went with Solar Liberty. Their pricing was better, their exceptional staff is very friendly and Knowledgeable. The people that did the install were courteous and professional, the workers were also local. I have never worked for this company and none of my relatives do either, this is a complete unbiased review If you thinking about Solar PV this company is the best choice and only choice. Any Questions feel free to contact me. Bill Henry wjhenrysr@verizon.net
Read more
Latest review
Bill Henry, over 1 month
Hi my name is Bill Henry, I am a Renewable Energy Advocate. Our home was one of the first in Erie County NY to be powered by Solar PV back in 2007. The Company that installed it was Solar Liberty. I chose to use them back then because they were the only local company in this area and I felt that was important. The system that was installed has worked flawlessly for over 12 years with only 1 minor warranty problem in which I called and Solar Liberty replaced the defect panel the next day! This company is remarkable to deal with. In 2019 we decided to add more solar panels to our system because we intend to charge an electric car in the future. After once again checking out other solar installers we went with Solar Liberty. Their pricing was better, their exceptional staff is very friendly and Knowledgeable. The people that did the install were courteous and professional, the workers were also local. I have never worked for this company and none of my relatives do either, this is a complete unbiased review If you thinking about Solar PV this company is the best choice and only choice. Any Questions feel free to contact me. Bill Henry wjhenrysr@verizon.net
4.66 59 Reviews
Latest review
Kevin , 6 days ago
Three years ago my wife and I built our house and dealing with contractors was an absolute nightmare. So we've always been a little gun shy with contractors working around the house. I just wanted to give a a huge kudos to all the folks at Solar by Cir. I have to say the crew was an absolute pleasure to work with. The cost was in the same ball park as the rest but just being able to talk to people during the week or even on the weekend with questions was a breath of fresh air. Installers showed up on time and walked me through everything. They were extremely patient with all of my questions. I've even referred a bunch of my friends/family. Don't hesitate to work with Kevin and his crew!
Read more
Latest review
Kevin , 6 days ago
Three years ago my wife and I built our house and dealing with contractors was an absolute nightmare. So we've always been a little gun shy with contractors working around the house. I just wanted to give a a huge kudos to all the folks at Solar by Cir. I have to say the crew was an absolute pleasure to work with. The cost was in the same ball park as the rest but just being able to talk to people during the week or even on the weekend with questions was a breath of fresh air. Installers showed up on time and walked me through everything. They were extremely patient with all of my questions. I've even referred a bunch of my friends/family. Don't hesitate to work with Kevin and his crew!
Solar guides for your New York city
For more information about going solar near where you live, check out the following resources:
Useful links
NYSERDA - NY SUN Smart Energy Loan Program
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