New York solar rebates and tax credits calculator

Solar incentive

Federal ITC 26% (tax credit)

State tax credit: Yes ($5,000)

Net metering (by utility)

Calculate for your homes location

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.

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:

  1. Learn what solar incentives are available to New York homeowners

  2. See what New York solar incentives you qualify for based on your utility company and city

  3. 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

Solar prices near you

Cost range of local prices

$14,637-$17,889

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.

Solar guides for your New York city

For more information about going solar near where you live, check out the following resources:

Find local city information

 

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