Summary of New York solar incentives 2020
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 1800% 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% in 2021. Unless new legislation is introduced in Washington D.C., this program will be gone in 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 25kW. 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, 2021.
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 6kW 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 late 2020, 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 2020
8.6kW
Solar panel cost calculator
Best 10 solar companies in New York
71 solar companies in New York provide pricing on SolarReviews. Here are the best rated companies near you.
4.89 167 Reviews
Latest review
Kimberly B, 4 days ago
When I decided to go Solar I shopped around but ultimately decided to go with Harvest Power LLC. A big reason was because Mark Lieberman made the project go so seamlessly. He mapped out everything for us so we knew exactly what we were getting and exactly what it was going to cost (and save) us. He was responsive to any questions me or my husband had and helped get the project completed way sooner than I imagined possible. I am extremely pleased we went with Harvest Power!
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Latest review
Kimberly B, 4 days ago
When I decided to go Solar I shopped around but ultimately decided to go with Harvest Power LLC. A big reason was because Mark Lieberman made the project go so seamlessly. He mapped out everything for us so we knew exactly what we were getting and exactly what it was going to cost (and save) us. He was responsive to any questions me or my husband had and helped get the project completed way sooner than I imagined possible. I am extremely pleased we went with Harvest Power!
4.86 250 Reviews
Latest review
HAPPY CUSTOMER, over 1 month
First I was reluctant to choose Sunation Solar, but this decision was the best I had ever made. I don't have to worry about high bills anymore.
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Latest review
HAPPY CUSTOMER, over 1 month
First I was reluctant to choose Sunation Solar, but this decision was the best I had ever made. I don't have to worry about high bills anymore.
4.86 93 Reviews
Latest review
Beata Konopka, 1 week ago
Great and reliable company. Friendly staff and quick service. Justin Roche thank you for educating me and great follow up. I definitely recommend Power Solution if you are looking for quality work.
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Latest review
Beata Konopka, 1 week ago
Great and reliable company. Friendly staff and quick service. Justin Roche thank you for educating me and great follow up. I definitely recommend Power Solution if you are looking for quality work.
4.80 47 Reviews
Latest review
Dan A, over 1 month
I have always been skeptical of solar companies but I was approached by Franklin Cusma, NY State Solar salesman, who was upfront and honest from the get go. I stressed to him my concerns and he was extremely versed in explaining step by step how the whole process works. He answered my text messages, calls, and emails right away and even came to my house to go over all the paperwork. After a few days we had the ball rolling and it was an extremely smooth process. I even got a few incentives (nest thermostats and a new roof) that allowed me to truly say yes to this company. The installation took one day and the panels look great. The back of my roof faces the south and the sun is energizing the panels. If you were skeptical like me, then give Franklin a call and he will give you his honest opinion if the solar panels would be beneficial to your cost of living and provide enough energy to even consider getting them. Thank you Franklin, and thank you NY State Solar!
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Latest review
Dan A, over 1 month
I have always been skeptical of solar companies but I was approached by Franklin Cusma, NY State Solar salesman, who was upfront and honest from the get go. I stressed to him my concerns and he was extremely versed in explaining step by step how the whole process works. He answered my text messages, calls, and emails right away and even came to my house to go over all the paperwork. After a few days we had the ball rolling and it was an extremely smooth process. I even got a few incentives (nest thermostats and a new roof) that allowed me to truly say yes to this company. The installation took one day and the panels look great. The back of my roof faces the south and the sun is energizing the panels. If you were skeptical like me, then give Franklin a call and he will give you his honest opinion if the solar panels would be beneficial to your cost of living and provide enough energy to even consider getting them. Thank you Franklin, and thank you NY State Solar!
4.77 34 Reviews
Latest review
Lou Huzella, 2 weeks ago
This is my second Paradise Energy Solutions solar project over the past 3 years. I have been very satisfied with Brian's expertise in sales and Charlie, my project manager's expertise in creating solutions. The installation teams were very professional and efficent. They worked hard getting the job done, and surmounting obstacles, including antiquated electrical panels. I think it is a great long term investment, and production thus far has exceeded estimates. I am glad I went with Paradise Energy Solutions for both projects. If you are interested in solar energy and want to work with a good company give them a call.
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Average cost (5kW system)
$16,000 ($3.20 per watt)
Latest review
Lou Huzella, 2 weeks ago
This is my second Paradise Energy Solutions solar project over the past 3 years. I have been very satisfied with Brian's expertise in sales and Charlie, my project manager's expertise in creating solutions. The installation teams were very professional and efficent. They worked hard getting the job done, and surmounting obstacles, including antiquated electrical panels. I think it is a great long term investment, and production thus far has exceeded estimates. I am glad I went with Paradise Energy Solutions for both projects. If you are interested in solar energy and want to work with a good company give them a call.
4.71 63 Reviews
Latest review
Glenn Gorelik, 2 weeks ago
EmPower solar is a great company to work with, from my first meeting with them to the commissioning of my system they were nothing short of professionalism. There engineering and install team are courteous and professional , answered all my questions and concerns.
Read more
Latest review
Glenn Gorelik, 2 weeks ago
EmPower solar is a great company to work with, from my first meeting with them to the commissioning of my system they were nothing short of professionalism. There engineering and install team are courteous and professional , answered all my questions and concerns.
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.
4.69 197 Reviews
Latest review
A HAM, 1 week ago
My experience with Venture Solar was superb. My salesman Tom was punctual and well informed about his product. All the technicians were on time, neat and very knowledgeable. I have no regrets choosing Venture Solar.
Read more
Latest review
A HAM, 1 week ago
My experience with Venture Solar was superb. My salesman Tom was punctual and well informed about his product. All the technicians were on time, neat and very knowledgeable. I have no regrets choosing Venture Solar.
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).
4.63 37 Reviews
Latest review
Kevin j hart, over 1 month
Heard nothing but good things about them and the replied back to me very quickly and they made repairs to existing system installed by solcius that would take weeks to get back to me and they where why better priced i would say anyone that doesn't choose Buffalo solar solutions is a moron
Read more
Latest review
Kevin j hart, over 1 month
Heard nothing but good things about them and the replied back to me very quickly and they made repairs to existing system installed by solcius that would take weeks to get back to me and they where why better priced i would say anyone that doesn't choose Buffalo solar solutions is a moron
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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