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 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!
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 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!
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!
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.
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.
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.
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.
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Prices based on a 8.6kW system, after 30% federal tax credit
107 solar companies in New York provide pricing on SolarReviews. Here are the best rated companies near you.
4.84 85 Reviews
Jim, over 1 month
We just had a solar system installed at our home by Paradise and are completely satisfied. Everyone we worked with was excellent and extremely helpful. Sheldon gave us all the information we needed to make an informed decision without even a hint of pressure. Matt guided us thru the actual installation process and never seemed to mind my numerous questions. Eric and his crew did a great job on the install despite the excessive heat wave. They were very neat and kept me informed during the process. Permitting was handled by Paradise and I just needed to sign the paperwork. I would recommend them to anyone looking to have solar installed. Thank you all.
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Average cost (5kW system)
$16,000 ($3.20 per watt)
Jim, over 1 month
We just had a solar system installed at our home by Paradise and are completely satisfied. Everyone we worked with was excellent and extremely helpful. Sheldon gave us all the information we needed to make an informed decision without even a hint of pressure. Matt guided us thru the actual installation process and never seemed to mind my numerous questions. Eric and his crew did a great job on the install despite the excessive heat wave. They were very neat and kept me informed during the process. Permitting was handled by Paradise and I just needed to sign the paperwork. I would recommend them to anyone looking to have solar installed. Thank you all.
4.84 213 Reviews
Michael and Andrea , over 1 month
I worked with Joe Galluzzo at Harvest and had a great experience. Joe treated me like a best friend from the start. Very professional and knowledgeable. He was always available to answer my questions and helped me every step of the way. We recommend working with Joe Galluzzo.
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Michael and Andrea , over 1 month
I worked with Joe Galluzzo at Harvest and had a great experience. Joe treated me like a best friend from the start. Very professional and knowledgeable. He was always available to answer my questions and helped me every step of the way. We recommend working with Joe Galluzzo.
Rudy , over 1 month
Quick and professional Installation
4.81 260 Reviews
Donald, over 1 month
Very professional - install went very smooth. Install techs walked us through the install process and when finished they gave us a basic run down of how system operates. Highly recommend. Very happy!
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Average cost (5kW system)
$13,750 ($2.75 per watt)
Donald, over 1 month
Very professional - install went very smooth. Install techs walked us through the install process and when finished they gave us a basic run down of how system operates. Highly recommend. Very happy!
4.79 126 Reviews
Mike F , over 1 month
Very happy with my solar project with Long Island Power solutions. Joe Galluzzo is a great guy and would absolutely recommend anyone interested in Solar to work with him. The roof itself came out beautifully and the crew did a great job cleaning up afterwards. The solar panels look great and the install team worked quickly and efficiently while making sure everything was done well and that it was all properly explained to me. Looking forward to some sunny days and free power.
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Mike F , over 1 month
Very happy with my solar project with Long Island Power solutions. Joe Galluzzo is a great guy and would absolutely recommend anyone interested in Solar to work with him. The roof itself came out beautifully and the crew did a great job cleaning up afterwards. The solar panels look great and the install team worked quickly and efficiently while making sure everything was done well and that it was all properly explained to me. Looking forward to some sunny days and free power.
4.76 135 Reviews
Diane Suter, 3 days ago
SunCommon made going solar SO easy! I did my homework and I was glad I did. The entire team was a joy to work with. Everyone was responsive and everything went super smoothly. Our installation was completed sooner than expected! Thanks SunCommon!
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Diane Suter, 3 days ago
SunCommon made going solar SO easy! I did my homework and I was glad I did. The entire team was a joy to work with. Everyone was responsive and everything went super smoothly. Our installation was completed sooner than expected! Thanks SunCommon!
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 75 Reviews
Adar E., over 1 month
SunBlue has been terrific throughout the whole process of installing solar panels on our roof. Everyone at the company is friendly and thorough, and they really educate you on how solar works, what is or isn't worth doing, etc. We're really happy with our solar system, and really happy we got it through SunBlue.
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Average cost (5kW system)
$17,150 ($3.43 per watt)
Adar E., over 1 month
SunBlue has been terrific throughout the whole process of installing solar panels on our roof. Everyone at the company is friendly and thorough, and they really educate you on how solar works, what is or isn't worth doing, etc. We're really happy with our solar system, and really happy we got it through SunBlue.
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!
4.67 35 Reviews
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
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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
For more information about going solar near where you live, check out the following resources:
NYSERDA - NY SUN Smart Energy Loan Program