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
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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
100 solar companies in New York provide pricing on SolarReviews. Here are the best rated companies near you.
4.90 193 Reviews
Latest review
Blue Point Jack, 4 days ago
I had a great experience with Harvest Power LLC. I had a single Tesla Power Wall and a 8.5 KW system put in place on a two house property in Blue Point, NY. Harvest Power linked the panels on my main house and cottage so that they could both work with the Tesla Power Wall for a micro-grid system, if the power ever goes out. The system looks nice on the roof, the installers were polite/safe/efficient, and the Harvest Power sales rep Kevin Goldstein was extremely professional and always responsive. When I was choosing who to go with in April 2020, Harvest Power was the only company that continually stayed in contact and responded to all of my text messages and emails. During the system design and installation, I really felt heard and that they valued my opinion in the process. One frustration was that the lead time due to various permitting issues took almost a year. In fact, I am still waiting for my Tesla Power Wall to be installed due to a back order on the batteries since they have become extremely popular. The delays of course were not necessarily Harvest Power's fault, but it was something that colored the process and should be accounted for in anyone's expectations. I would definitely recommend Harvest Power to others based on my experience.
Read more
Latest review
Blue Point Jack, 4 days ago
I had a great experience with Harvest Power LLC. I had a single Tesla Power Wall and a 8.5 KW system put in place on a two house property in Blue Point, NY. Harvest Power linked the panels on my main house and cottage so that they could both work with the Tesla Power Wall for a micro-grid system, if the power ever goes out. The system looks nice on the roof, the installers were polite/safe/efficient, and the Harvest Power sales rep Kevin Goldstein was extremely professional and always responsive. When I was choosing who to go with in April 2020, Harvest Power was the only company that continually stayed in contact and responded to all of my text messages and emails. During the system design and installation, I really felt heard and that they valued my opinion in the process. One frustration was that the lead time due to various permitting issues took almost a year. In fact, I am still waiting for my Tesla Power Wall to be installed due to a back order on the batteries since they have become extremely popular. The delays of course were not necessarily Harvest Power's fault, but it was something that colored the process and should be accounted for in anyone's expectations. I would definitely recommend Harvest Power to others based on my experience.
4.85 99 Reviews
Latest review
Chris, 1 day ago
I recently just got my system installed and i love it. I worked with Justin who was really great and easy to deal with. He explained everything i needed to do and know throughout the whole process. The process was very quick and easy and the installers were very professional, clean and organized. Everything came out great! If you are thinking about using solar i would highly recommend you use LIPS and ask for Justin.
Read more
Latest review
Chris, 1 day ago
I recently just got my system installed and i love it. I worked with Justin who was really great and easy to deal with. He explained everything i needed to do and know throughout the whole process. The process was very quick and easy and the installers were very professional, clean and organized. Everything came out great! If you are thinking about using solar i would highly recommend you use LIPS and ask for Justin.
4.81 252 Reviews
Latest review
Burnham , 5 hours ago
Did a thorough background check on several companies and was most impressed with Sunation. Their price was competitive and the salesman provided multiple options to meet our needs
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Latest review
Burnham , 5 hours ago
Did a thorough background check on several companies and was most impressed with Sunation. Their price was competitive and the salesman provided multiple options to meet our needs
4.81 49 Reviews
Latest review
Extremely satisfied. Everyone wa, 1 week ago
Extremely satisfied. Everyone was extremely professional and personable. Quick responses whenever I had questions.
Read more
Average cost (5kW system)
$16,000 ($3.20 per watt)
Latest review
Extremely satisfied. Everyone wa, 1 week ago
Extremely satisfied. Everyone was extremely professional and personable. Quick responses whenever I had questions.
4.81 48 Reviews
Latest review
Christine Hoesch, over 1 month
This company made the best sense for our Solar/ electric Needs, Alex worked very had to get the job done with the best deal.
Read more
Latest review
Christine Hoesch, over 1 month
This company made the best sense for our Solar/ electric Needs, Alex worked very had to get the job done with the best deal.
4.74 67 Reviews
Latest review
Charles , over 1 month
Empower Solar did a great job installing 40 solar panels on my home here in Amagansett NY.
Read more
Latest review
Charles , over 1 month
Empower Solar did a great job installing 40 solar panels on my home here in Amagansett NY.
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.
Read more
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.
4.68 69 Reviews
Latest review
Kat Newman, 1 month ago
SunBlue Energy was very efficient in getting back to us in order to place solar panels on our home. They were efficient and were great at answering all our questions. We’ve had the panels installed and they work better than promised!
Read more
Average cost (5kW system)
$17,150 ($3.43 per watt)
Latest review
Kat Newman, 1 month ago
SunBlue Energy was very efficient in getting back to us in order to place solar panels on our home. They were efficient and were great at answering all our questions. We’ve had the panels installed and they work better than promised!
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 32 Reviews
Latest review
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).
Read more
Latest review
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).
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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