Solar panels New York:

Prices, incentives and best companies 2020

Avg NY solar panel cost:

$13,654 - $16,688*

Avg 25 year savings:

$61,533 - $75,207

Avg payback period:

3.2 - 3.9 years

Estimate cost and savings based on your location and power usage

* Cost data based on quotes for fully-installed solar panel systems submitted on our platform. Prices are shown after applying the 26% federal tax credit.

New York solar panels guide 2020

Updated November 3, 2020

When it comes to home solar panels, New York has long been one of the best places in the country. The state offers a balanced mix of good solar incentives and relatively high electricity prices that makes home solar in New York a very attractive financial investment.

The financial picture for home solar is expected to stay rosy for years to come, but as the federal solar tax credit steps down from its current 26% level to 0% in 2023, the benefits of solar will be harder to come by. Other changes are coming in 2022 that will see new solar owners with additional small monthly charges on their bill, but people who install solar before then can avoid those charges and lock in the current net metering deal. 

The Empire State is focused on a goal of 100% renewable energy by 2050, and homeowners can be a part of achieving that goal. The combination of soon-to-expire incentives and changing solar compensation rules makes now the right time to get solar panels for your New York home.

On this page:

Solar power prices, savings and payback in your part of New York

The average cost for an installed residential solar system in New York is currently $12,716 after claiming the 26% federal solar tax credit. This is $2.86 per watt. However, there is some variance in solar prices in different parts of the state. The graph below shows the average cost of installed solar systems in your part of the state.

Cost range of local prices

$13,654-$16,688

Net profit (savings less system cost)

$61,533-$75,207

Payback period

3.2-3.9 years

Recommended size for the selected utility bill

6.8kW

Solar panel cost calculator

Cash flow graph based on cash purchase of a 6.8kW system

Are solar panels worth it in New York

Solar panels have fallen in price by more than 80% in the last ten years. In 2020 they also remain subsidized by the 26% federal tax credit and the net metering law, making them an excellent investment. They offer a return well above the long term average return from both the share market and also property investment.

Another way to look at this question is the levelized amount you will pay for each kWh of power you will use over the next 25 years with and without solar panels. As you can see below the savings are significant.

Levelized cost of solar energy
?
Levelized cost per kWh is the cost of the solar system divided by the total number of kWh produced by a solar system over it’s lifetime

4¢ /kWh

If you don't get solar

72¢ /kWh

(forecast avg New York electric rates over the next 25 years)

NY solar panel cost calculator

New York solar incentives & tax credits

Federal solar tax credit

The most significant incentive to install solar panels for homes and businesses is the federal solar tax credit. At the end of 2020, the amount of the credit will decrease from 26% to 22% of the cost of the solar installation. Because home and business owners want to get the largest incentive amount possible, solar panel installation companies will likely be flooded with new projects before year’s end. In order to maximize your savings potential, the best time to go solar in New York is now.

New York state tax credit

The second most important incentive for solar panel installations in New York is the state solar tax credit, which allows you to potentially earn an extra $5,000 to put towards your taxes, on top of the federal solar tax credit. These two incentives can be combined to reduce the cost of going solar by more than half after the first year, and electric bill savings will pay back the rest of the cost in under 8 years, leaving home solar system owners with nearly two decades of free electricity.

Table 2: Available incentive programs
Eligibility: Federal incentive
Type: Personal Tax Credit
Eligibility: State incentive
Type: Personal Tax Credit

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Top models of solar panel installed in New York 2020

Average cost of solar panel installation in New York by system size

System size*
Cash purchase

(After tax credit)

Financed purchase

(After tax credit)

4kW $12,536 $13,414
5kW $14,995 $16,045
6kW $17,184 $18,387
7kW $19,859 $21,249
8kW $23,120 $24,738
9kW $24,966 $26,714
10kW $27,470 $29,393

Find city information in New York

 

Best solar companies in the main cities of New York

Solar Companies in New York

Different types of solar companies

Solar company reviews

Home solar basics

Is it better to lease or buy solar panels in New York

You will save most money by buying your solar system rather than leasing it. Read more about the pros and cons of leasing vs buying solar.

How long do solar panels last?

Minimum of 25 years but generally 30 or more

How do solar panels work on a home?

Solar panels power your house when they can but your home uses the utility company for power at other times. In 2020 "solar systems with battery storage" are becoming more popular. These are known as hybrid systems.

How do solar panels work?

Grid-tied solar system

Solar panels are mounted on your roof and wired together in groups called solar arrays. The power they generate flows into a solar inverter, where the direct current (DC) is converted into alternating current (AC). The electricity is then either used by your home or exported to the electric grid.

Off-grid solar system

Off-grid solar power involves meeting all your energy needs from the sun; there’s no utility to fall back on. The solar installation needs to power your home not just during the day, when the sun is shining, but after dark as well. This requires many solar panels, paired with a large battery system.

Hybrid solar system

In hybrid solar systems, rooftop solar panels are connected to both a solar battery and the electric grid. This reduces your reliance on the utility while also providing backup power when needed. Battery storage is still expensive but you may be able to reduce costs by using state incentives.

Read more about types of home solar systems.

Do solar panels require regular maintenance?

No, but cleaning them can improve power generation if they are dirty.

Will residential solar power system cost fall in New York in 2020?

Given this environment, and the effect of import tariffs placed on solar panels by the Trump administration during 2018, it is hard to see that solar power system prices in New York will fall during 2020.

How much electricity do solar panel systems generate in New York?

Depending on the location, solar panels will generate different amounts of electricity.

A solar system that is installed on a south-facing 27-degree pitch roof New York will generate 1,230kWh of peak DC (direct current) capacity per year per 1kW in the New York area.

Enter your details into the solar panel calculator to see how your location, roof tilt, and roof direction impacts solar panel production.

What are the pros and cons of installing solar panels in New York?

The biggest advantages in New York for installing solar panels are the big state and federal tax credits that can wipe out over half your cost to go solar in under 1 year.

New York also offers excellent annual electric bill savings, because electricity is pretty expensive here and solar panels can make enough to meet all your needs.

There are not many disadvantages to installing solar panels in the Empire State. If you’re a New York homeowner, you’ll be kicking yourself that you didn’t get solar while all of these incentives were still around. Enter your details to calculate the cost and savings you are likely to get from installing solar panels for your home.

Enter your details to calculate the cost and savings you are likely to get from installing solar panels for your home.

What you can learn from our state solar panel calculator

This solar calculator requires you to input your address, utility company, your average monthly power spend - it tells you:

If you want to see all of the above but also see live pricing, the three best solar deals available in your city and get binding quotes from each of these solar companies then use this New York solar panels calculator. This calculator requires you to also input your name and contact details because most of our 200+ installer partners will only authorize the sharing of their live solar pricing where we have validated that you are a real homeowner with a home in their service area. We respect the privacy of your data and only share your contact details with the solar companies you ask us to get binding quotes from.

Note: Please keep in mind that the best source of up-to-date information on incentives are the solar installers who specialize in your area.

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