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:
-
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
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:
Change
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
102 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.
4.84 60 Reviews
Latest review
Bryan M., over 1 month
Paradise was excellent from start to finish. They stood out against several other companies when we quoting our project because of their courteousness and responsiveness. Their costs were right in line with the other quotes we got, but in the end Paradise was able to secure grant funding and helped us maximize our tax incentive, so our out-of-pocket cost was lower than it would have been with other companies. The install crew was fast and professional. And now that the system is up and running they're responsive to any questions we have. Couldn't have asked for a better experience!
Read more
Average cost (5kW system)
$16,000 ($3.20 per watt)
Latest review
Bryan M., over 1 month
Paradise was excellent from start to finish. They stood out against several other companies when we quoting our project because of their courteousness and responsiveness. Their costs were right in line with the other quotes we got, but in the end Paradise was able to secure grant funding and helped us maximize our tax incentive, so our out-of-pocket cost was lower than it would have been with other companies. The install crew was fast and professional. And now that the system is up and running they're responsive to any questions we have. Couldn't have asked for a better experience!
4.80 254 Reviews
Latest review
Brian, over 1 month
Everyone we had contact with from sales to installation were extremely friendly and helpful. Due to issue with our existing roof we had to postpone the installation 1yr and Sunation honored the original quote, no questions asked. Due to Covid-19 supply shortages they had to substitute panels to a different manufacturer which required additional panels which they provided at no extra charge, increasing my total output an extra 400 watts. Sunation handled all the paperwork and made for a smooth and speedy process from start to finish. 100% satisfied.
Read more
Average cost (5kW system)
$13,750 ($2.75 per watt)
Latest review
Brian, over 1 month
Everyone we had contact with from sales to installation were extremely friendly and helpful. Due to issue with our existing roof we had to postpone the installation 1yr and Sunation honored the original quote, no questions asked. Due to Covid-19 supply shortages they had to substitute panels to a different manufacturer which required additional panels which they provided at no extra charge, increasing my total output an extra 400 watts. Sunation handled all the paperwork and made for a smooth and speedy process from start to finish. 100% satisfied.
4.80 113 Reviews
Latest review
John S, 4 days ago
I cannot say enough about Justin Roche and LI Power Solutions. I have been looking to go solar for several years now. But the costs always seemed to outweigh the benefits. Why would I want to make the switch if the cost was going to exceed my current electric bill, and the return on my investment was years away? To complicate matters, my aging roof would need replacing before I could mount solar panels on it. Justin helped me see the light that now is the right time to go solar. He is not your typical pushy salesman out to make a quick commission. He is very knowledgeable and personal. Very trustworthy. He and his team put together a plan for me that easily bested the competition (and I did get estimates from multiple companies). And my savings start on day 1, not one day in the distant future. They also put me in touch with their recommended roofing company, Atlantic Exteriors, who did an amazing job. Both the roof install and subsequent solar panel install went quickly and smoothly, with an impressive clean up job. The all black panels look very attractive on my new roof. Not awkward looking, like most homes with panels I’ve seen. It puts a smile on my face when I see my electric meter turning backwards:) I’ve had a very positive experience with LI Power Solutions. With their help, I managed to go green while saving some green. I recommend them highly.
Read more
Latest review
John S, 4 days ago
I cannot say enough about Justin Roche and LI Power Solutions. I have been looking to go solar for several years now. But the costs always seemed to outweigh the benefits. Why would I want to make the switch if the cost was going to exceed my current electric bill, and the return on my investment was years away? To complicate matters, my aging roof would need replacing before I could mount solar panels on it. Justin helped me see the light that now is the right time to go solar. He is not your typical pushy salesman out to make a quick commission. He is very knowledgeable and personal. Very trustworthy. He and his team put together a plan for me that easily bested the competition (and I did get estimates from multiple companies). And my savings start on day 1, not one day in the distant future. They also put me in touch with their recommended roofing company, Atlantic Exteriors, who did an amazing job. Both the roof install and subsequent solar panel install went quickly and smoothly, with an impressive clean up job. The all black panels look very attractive on my new roof. Not awkward looking, like most homes with panels I’ve seen. It puts a smile on my face when I see my electric meter turning backwards:) I’ve had a very positive experience with LI Power Solutions. With their help, I managed to go green while saving some green. I recommend them highly.
4.80 50 Reviews
Latest review
Tony, over 1 month
We have been happy and impressed with the entire process so far. We are not yet connected but all work is complete. Especially happy with the efforts of salesman Milan Milosevic. Very professional and courteous. The install crew was very timely neat and through. We would be happy to refer to others.
Read more
Latest review
Tony, over 1 month
We have been happy and impressed with the entire process so far. We are not yet connected but all work is complete. Especially happy with the efforts of salesman Milan Milosevic. Very professional and courteous. The install crew was very timely neat and through. We would be happy to refer to others.
4.75 71 Reviews
Latest review
Zak U, 1 week ago
I just had a 13kW system installed by EmPower. I was extremely impressed with the entire process from start to finish- sales, planning, and the installation itself. Everything was incredibly streamlined. I shouldn't have mentioned the "planning" stage because I literally don't think I did anything at all. Everyone was very helpful, took their time explaining the nitty gritty details. Overall it was a great experience and I'm very happy with the system. I also signed up for their new community solar project in Selden, so when I'm not powered by my Empower solar system, I'll be getting power from community solar.
Read more
Latest review
Zak U, 1 week ago
I just had a 13kW system installed by EmPower. I was extremely impressed with the entire process from start to finish- sales, planning, and the installation itself. Everything was incredibly streamlined. I shouldn't have mentioned the "planning" stage because I literally don't think I did anything at all. Everyone was very helpful, took their time explaining the nitty gritty details. Overall it was a great experience and I'm very happy with the system. I also signed up for their new community solar project in Selden, so when I'm not powered by my Empower solar system, I'll be getting power from community solar.
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, over 1 month
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, over 1 month
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
Related solar news
Ben Zientara
January 26, 2021
The state of net metering in the United States in 2021
This annual report ranks the states for friendliness to home solar based on their net metering programs.
Catherine Lane
July 21, 2020
New York’s new net metering policy to cut solar savings
In response to coronavirus, New York extended their net metering program - at a cost.
Ben Zientara
July 2, 2020
Low-income solar incentives in the US
Across the US, several states have programs that provide free solar panels for low-income households.
Zeeshan Hyder
June 15, 2021
Are solar canopies and carports worth it?
Solar canopies are custom-built outdoor structures designed to hold overhanging solar panels, enabling on-site solar power generation.
Zeeshan Hyder
June 10, 2021
What is Concentrated Solar Power (CSP)?
Concentrated solar power (CSP) uses special mirrors to concentrate the sun’s energy; the collected heat is then used to generate power on the utility scale.