Federal ITC 26% (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
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.
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.
Showing data for:
Prices based on a 8.6kW system, after 26% federal tax credit
105 solar companies in New York provide pricing on SolarReviews. Here are the best rated companies near you.
4.85 82 Reviews
Deerfield Farm, 2 weeks ago
Paradise Energy Solutions has been an outstanding company to work with! We were constantly kept informed of the project's progress with weekly e-mails and the staff were extremely professional and helpful.
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Average cost (5kW system)
$16,000 ($3.20 per watt)
Deerfield Farm, 2 weeks ago
Paradise Energy Solutions has been an outstanding company to work with! We were constantly kept informed of the project's progress with weekly e-mails and the staff were extremely professional and helpful.
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.
4.83 94 Reviews
DebCan, 5 days ago
We are so excited about our Empower Solar System. After years of prep work, investigating solar panel efficiency, and customer satisfaction reviews, we decided to go with Empower Solar. What a great company!! From beginning to end, the process was made easy by prompt informational emails, courteous and professional install teams, and a beautiful finished system. We are now 117% powered by the Sun! I can't recommend Empower enough!
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DebCan, 5 days ago
We are so excited about our Empower Solar System. After years of prep work, investigating solar panel efficiency, and customer satisfaction reviews, we decided to go with Empower Solar. What a great company!! From beginning to end, the process was made easy by prompt informational emails, courteous and professional install teams, and a beautiful finished system. We are now 117% powered by the Sun! I can't recommend Empower enough!
4.80 259 Reviews
Marek Mucha, over 1 month
SunNation is a superb company! I chose them last year after evaluating multiple bids. They were informed, patient and very professional through the entire process. They dropped the wires into the attic so there is no ugly conduit running over the roof and siding. The installation was done in one day and job site was left spotless. Thank you Marques for all the time you spent with me to design and explaining all my questions!! Fantastic experience with the best company around.
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Average cost (5kW system)
$13,750 ($2.75 per watt)
Marek Mucha, over 1 month
SunNation is a superb company! I chose them last year after evaluating multiple bids. They were informed, patient and very professional through the entire process. They dropped the wires into the attic so there is no ugly conduit running over the roof and siding. The installation was done in one day and job site was left spotless. Thank you Marques for all the time you spent with me to design and explaining all my questions!! Fantastic experience with the best company around.
4.78 123 Reviews
Parminder Kaur, over 1 month
I had very wonderful experience with Li power solutions. They are the best in town. I will mention Steve is so wonderful, he helped me from beginning till system was installed and started on. He was always available with answers whenever i had any issues. He took care of all the application and paperwork which kept me away from all kind of stress. Installation was smooth. I will also say about Brian , he took good amout of time to help me understand about how everything works and answered all my questions patiently. I love the monitoring app that they offer which i can use to keep track of my production. On top of everything going solar took away my electric bill expense which is best for anyone of us. I have alot to write but i would stop and just say they are the BEST solar providers around here. So Go guys !!! Go Solar!!!! .
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Parminder Kaur, over 1 month
I had very wonderful experience with Li power solutions. They are the best in town. I will mention Steve is so wonderful, he helped me from beginning till system was installed and started on. He was always available with answers whenever i had any issues. He took care of all the application and paperwork which kept me away from all kind of stress. Installation was smooth. I will also say about Brian , he took good amout of time to help me understand about how everything works and answered all my questions patiently. I love the monitoring app that they offer which i can use to keep track of my production. On top of everything going solar took away my electric bill expense which is best for anyone of us. I have alot to write but i would stop and just say they are the BEST solar providers around here. So Go guys !!! Go Solar!!!! .
4.77 53 Reviews
Marc B., over 1 month
So glad we chose NYS Solar! We worked with Jonathan Lopez, who patiently walked us through the process from start to finish. He answered all of our questions thoroughly, and made for a stress free experience. Thanks Jonathan!!
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Marc B., over 1 month
So glad we chose NYS Solar! We worked with Jonathan Lopez, who patiently walked us through the process from start to finish. He answered all of our questions thoroughly, and made for a stress free experience. Thanks Jonathan!!
4.72 122 Reviews
Gretchen, 3 weeks ago
Our entire experience with SunCommon was outstanding! Every person we dealt with was extremely professional. They took care of every detail, from designing our system so that it will serve our needs now and into the future, to arranging financing, to reseeding our lawn after the project was complete. I have never met such a compassionate and caring group either. Our dog passed away due to cancer during the time that the team was at our house. They went out of their way to help us bury her and then the company made a donation to a local Humane Society in her name. They were respectful of our time and our property. I can’t say enough about them!
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Gretchen, 3 weeks ago
Our entire experience with SunCommon was outstanding! Every person we dealt with was extremely professional. They took care of every detail, from designing our system so that it will serve our needs now and into the future, to arranging financing, to reseeding our lawn after the project was complete. I have never met such a compassionate and caring group either. Our dog passed away due to cancer during the time that the team was at our house. They went out of their way to help us bury her and then the company made a donation to a local Humane Society in her name. They were respectful of our time and our property. I can’t say enough about them!
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.
4.70 74 Reviews
John Ettenson, 1 week ago
Excellent, thorough job. Staff very helpful and available.
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Average cost (5kW system)
$17,150 ($3.43 per watt)
John Ettenson, 1 week ago
Excellent, thorough job. Staff very helpful and available.
4.69 61 Reviews
Akins, over 1 month
Fantastic experience and Product! Couldn’t be happier with the customer support and knowledgeable team (Kevin Wagner). Answered all my questions and walked me through the process clearly. No hidden steps or surprises. Professionally installed with good craftsmanship! Akins
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Akins, over 1 month
Fantastic experience and Product! Couldn’t be happier with the customer support and knowledgeable team (Kevin Wagner). Answered all my questions and walked me through the process clearly. No hidden steps or surprises. Professionally installed with good craftsmanship! Akins
For more information about going solar near where you live, check out the following resources:
NYSERDA - NY SUN Smart Energy Loan Program