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 huge solar growth, 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 must provide net metering services for residential systems up to 25 kW. Any net excess electricity generation is credited to your next bill at the retail rate. Excess generation is reconciled annually at the avoided-cost rate.
However, solar customers do have to pay a monthly Customer Benefit Charge (CBC) that cannot be offset by solar generation. The customer benefit charge is based on the size of your solar system and your utility company. The CBC will equate to a few extra dollars per month and doesn't drastically impact your solar investment.
However, New York is looking to transition to a new solar billing structure called the Value of Distributed Energy Resources (VDER), or Value Stack, program. This program seeks to credit solar energy producers more accurately without pushing costs onto non-solar customers.
Through the NY-Sun PV Incentive Program, New York residents statewide are looking at rebate rates of $200 to $400 per kW on solar installations up to 25 kW. That means you can expect a rebate of $1,200-$2,400 on a 6 kW system. Be aware, however, that the incentive values get lower 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!
In addition to the 30% 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 that 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, adding solar panels to your home is exempt from property tax increases for a solid fifteen years, even though installing solar panels adds roughly 20 times your annual electricity bill savings to your property value. In the case of our 6 kW example, that's about $28,000 of additional value to your home that you don't have to pay.
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 up front.
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 2022, 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
112 solar companies in New York provide pricing on SolarReviews. Here are the best rated companies near you.
4.84 105 Reviews
Alex, 2 weeks ago
The entire crew at paradise energy made our solar install and setup a breeze. Thanks again for everything!
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Average cost (5kW system)
$16,000 ($3.20 per watt)
Alex, 2 weeks ago
The entire crew at paradise energy made our solar install and setup a breeze. Thanks again for everything!
4.82 264 Reviews
Ed M., over 1 month
Installation was prompt, fast, extremely neat and professional. We are very happy with our system so far.
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Average cost (5kW system)
$13,750 ($2.75 per watt)
Ed M., over 1 month
Installation was prompt, fast, extremely neat and professional. We are very happy with our system so far.
4.82 225 Reviews
John B , 3 weeks ago
Lenney was great to work with from start to finish! He proposed a great plan then followed through each step of the way. He was always available for all of our questions. Thank you Lenney ! Deanna made the document collection process easy and was great too. The whole team is highly recommended!
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John B , 3 weeks ago
Lenney was great to work with from start to finish! He proposed a great plan then followed through each step of the way. He was always available for all of our questions. Thank you Lenney ! Deanna made the document collection process easy and was great too. The whole team is highly recommended!
4.79 106 Reviews
Happy homeowner, over 1 month
Empower Solar is a great solar energy installer. I liked that they have installed both residential and local large businesses with good reputation. The salesperson, design, home roof/power inspection, and actual installation were very professional. Everything went smoothly. On the day installation was completed they showed me on an App the solar energy capture by the panels was working: that was amazing! The installation team were really excellent and good communication about the process.
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Happy homeowner, over 1 month
Empower Solar is a great solar energy installer. I liked that they have installed both residential and local large businesses with good reputation. The salesperson, design, home roof/power inspection, and actual installation were very professional. Everything went smoothly. On the day installation was completed they showed me on an App the solar energy capture by the panels was working: that was amazing! The installation team were really excellent and good communication about the process.
4.74 538 Reviews
Kath’s house, 4 days ago
I was very happy with the crew and the whole installation of my solar panels. I would recommend Venture to anyone who is thinking of going solar.
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Kath’s house, 4 days ago
I was very happy with the crew and the whole installation of my solar panels. I would recommend Venture to anyone who is thinking of going solar.
4.72 78 Reviews
Julian P, over 1 month
I had installed solar panels in my previous home about 10 years ago and when I moved into my new house, I figured I’d use the same installer—SunRun. After wasting weeks dealing with their red-tape, high price quotes and unaccommodating staff, I decided to find a local company who wanted my business and was easier to deal with. I checked out more than a dozen companies before finding SunBlue and was pleasantly surprised. Their prices are competitive, their staff is courteous and the owner, Chris Hale, is a great guy who is exceptionally knowledgeable. I had them install a 55 panel system on my home and the process was smooth from beginning to end. The quality of their work was excellent and they handled every aspect of the job including permits, inspections, etc.. My panels are now offsetting 100% of my electricity usage so I’m enjoying huge savings on my ConEd bill. If you’re thinking of going solar, don’t waste your time shopping around—just go with SunBlue and get the job done right.
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Average cost (5kW system)
$17,150 ($3.43 per watt)
Julian P, over 1 month
I had installed solar panels in my previous home about 10 years ago and when I moved into my new house, I figured I’d use the same installer—SunRun. After wasting weeks dealing with their red-tape, high price quotes and unaccommodating staff, I decided to find a local company who wanted my business and was easier to deal with. I checked out more than a dozen companies before finding SunBlue and was pleasantly surprised. Their prices are competitive, their staff is courteous and the owner, Chris Hale, is a great guy who is exceptionally knowledgeable. I had them install a 55 panel system on my home and the process was smooth from beginning to end. The quality of their work was excellent and they handled every aspect of the job including permits, inspections, etc.. My panels are now offsetting 100% of my electricity usage so I’m enjoying huge savings on my ConEd bill. If you’re thinking of going solar, don’t waste your time shopping around—just go with SunBlue and get the job done right.
4.72 131 Reviews
Anthony, over 1 month
Great people to work with!! If you are looking into getting Solar call Dave and Bill. They are both a pleasure to deal with and know what they are doing. I couldn’t have asked for better.
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Anthony, over 1 month
Great people to work with!! If you are looking into getting Solar call Dave and Bill. They are both a pleasure to deal with and know what they are doing. I couldn’t have asked for better.
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 65 Reviews
David Hoover, over 1 month
I ws very pleased with all aspects of our purchase and installation of solar panels for our home. From the initial sales, through installation and activation, CIR staff were always polite, professional and competent.
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David Hoover, over 1 month
I ws very pleased with all aspects of our purchase and installation of solar panels for our home. From the initial sales, through installation and activation, CIR staff were always polite, professional and competent.
4.69 88 Reviews
Kathy Trotta, 3 weeks ago
Tom was a great salesman. Went over everything and answered all my questions. I would highly recommend him. Installation went very smoothly. Electric and 16 panels were installed within 3 hours. Now waiting for my bill!!!!
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Kathy Trotta, 3 weeks ago
Tom was a great salesman. Went over everything and answered all my questions. I would highly recommend him. Installation went very smoothly. Electric and 16 panels were installed within 3 hours. Now waiting for my bill!!!!
For more information about going solar near where you live, check out the following resources:
NYSERDA - NY SUN Smart Energy Loan Program