New York solar panels guide 2023
Updated August 26, 2022New York has long been one of the best places in the country to install solar panels. Despite not being the sunniest state, it offers some of the best solar incentives available and has high electricity rates, meaning homeowners can get some serious electric bill savings.
But, some of the incentives that make New York such a solar-friendly state won't be around forever. The state's net metering policy is set to change in the coming years, and the popular NY-Sun Megawatt Block program is in its final stages. To lock in these incentives and maximize solar savings, New Yorkers should consider switching to solar sooner rather than later.
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 $12,029 after claiming the 30% 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.
Showing data for:
Prices based on a 6.8kW system, after 30% federal tax credit
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 2022 they also remain subsidized by the 30% 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. The solar tax credit is equal to 30% of the total solar installation costs, potentially earning homeowners thousands of dollars they can deduct from their income taxes.
Thanks to the passing of the Inflation Reduction Act, the 30% solar tax credit is now available until the end of 2032. In 2033, the value drops to 26%. Systems installed in 2034 will receive a tax credit equal to 22% of installation costs. In 2035, the tax credit expires completely.
New York state tax credit
Another important incentive for solar panel installations in New York is the state solar tax credit. New York's state tax credit is equal to 25% of total installation costs, up to $5,000, and can be used with 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. This leaves home solar system owners with nearly two decades of free electricity.
Net metering
New York's current net metering program is called "Phase One Net Metering plus CBC". The program works just like traditional net metering, where utilities provide a bill credit for excess solar energy sent to the grid that is equal to the full retail rate of electricity.
But, solar owners must also pay an additional monthly charge, called a Customer Benefit Contribution (CBC) charge. The value of the charge is based on the size of the solar panel system, and the utility's CBC charge rate. For example, Con Edison's CBC charge rate is equal to $0.94 per kilowatt of solar installed. This means a homeowner with a 7-kilowatt solar system would have to pay an additional $6.58 per month.
You can learn more about how net metering in the Empire State works and how much it can save you in our guide to New York net metering.
NY-Sun Megawatt Block Program
The NY-Sun Megawatt Block Program is another way New Yorkers can significantly reduce the cost of going solar. The Megawatt Block Program provides homeowners with upfront incentives for installing solar panels, based on the size of their solar system.
The value of the rebate is typically between $1,000 and $3,000 but varies depending on where you live and the size of your solar system.
But, this incentive won't be around forever - it expires once the program is full, and is already expired for residents of Long Island. This means the best time to install solar in New York is now before the Megawatt Block Program is no longer available.
Table 2: Available incentive programs
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Eligibility: Federal incentive
Type: Personal Tax Credit
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Eligibility: State incentive
Type: Sales Tax Incentive
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Best unit price
$320.00 ($0.96 per watt)
Best system price
Installed 5.0kW system
$12,721.85
($2.53 p/w)
LG335N1K-V5 overview
Rated power
335 watts
Efficiency
19.6
Number of Cells
60
Cell type
Monocrystalline/N-type
Manufactured
KR
Best unit price
$562.50 ($1.50 per watt)
Best system price
Installed 4.9kW system
$12,120.18
($2.49 p/w)
LG375A1C-V5 overview
Rated power
375 watts
Efficiency
21.7
Number of Cells
60
Cell type
Monocrystalline/N-type
Manufactured
KR
Best unit price
$430.00 ($1.15 per watt)
Best system price
Installed 4.9kW system
$12,919.30
($2.65 p/w)
LG375Q1C-V5 overview
Rated power
375 watts
Efficiency
21.7
Number of Cells
60
Cell type
Monocrystalline/N-type
Manufactured
KR
Best unit price
$473.34 ($1.30 per watt)
Best system price
Installed 5.1kW system
$13,231.07
($2.59 p/w)
LG365Q1K-V5 overview
Rated power
365 watts
Efficiency
21.1
Number of Cells
60
Cell type
Monocrystalline/N-type
Manufactured
KR
Best unit price
$432.00 ($1.20 per watt)
Best system price
Installed 5.0kW system
$13,276.66
($2.63 p/w)
LG360Q1K-V5 overview
Rated power
360 watts
Efficiency
20.8
Number of Cells
60
Cell type
Monocrystalline/N-type
Manufactured
US
Best unit price
$530.85 ($1.50 per watt)
Best system price
Installed 5.0kW system
$12,386.87
($2.49 p/w)
LG355Q1K-V5 overview
Rated power
355 watts
Efficiency
20.6
Number of Cells
60
Cell type
Monocrystalline/N-type
Manufactured
US
Best unit price
$495.00 ($1.38 per watt)
Best system price
Installed 5.0kW system
$13,091.06
($2.60 p/w)
LG360Q1C-V5 overview
Rated power
360 watts
Efficiency
20.8
Number of Cells
60
Cell type
Monocrystalline/N-type
Manufactured
US
Best unit price
$407.97 ($1.10 per watt)
Best system price
Installed 5.2kW system
$13,159.30
($2.54 p/w)
LG370Q1C-V5 overview
Rated power
370 watts
Efficiency
21.4
Number of Cells
60
Cell type
Monocrystalline/N-type
Manufactured
US
Best unit price
$323.39 ($0.97 per watt)
Best system price
Installed 5.0kW system
$12,691.01
($2.53 p/w)
LG335N1C-V5 overview
Rated power
335 watts
Efficiency
19.6
Number of Cells
60
Cell type
Monocrystalline/N-type
Manufactured
US
Best unit price
$338.19 ($0.99 per watt)
Best system price
Installed 5.1kW system
$0.00
($0.00 p/w)
LG340N1C-V5 overview
Rated power
340 watts
Efficiency
19.8
Number of Cells
60
Cell type
Monocrystalline/N-type
Manufactured
US
Best unit price
$600.00 ($1.83 per watt)
Best system price
Installed 4.9kW system
$12,808.41
($2.61 p/w)
SPR-E20-327-COM overview
Rated power
327 watts
Efficiency
20.4
Number of Cells
96
Cell type
Monocrystalline
Manufactured
US
Best unit price
$800.00 ($2.22 per watt)
Best system price
Installed 5.0kW system
$13,201.67
($2.62 p/w)
SPR-X22-360 overview
Rated power
360 watts
Efficiency
22.2
Number of Cells
96
Cell type
Monocrystalline
Manufactured
US
Best unit price
$620.00 ($1.90 per watt)
Best system price
Installed 4.9kW system
$13,703.10
($2.79 p/w)
SPR-E20-327-D-AC overview
Rated power
327 watts
Efficiency
20.4
Number of Cells
96
Cell type
Monocrystalline
Manufactured
US
Best unit price
$620.00 ($1.90 per watt)
Best system price
Installed 4.9kW system
$13,610.59
($2.77 p/w)
SPR-E20-327 overview
Rated power
327 watts
Efficiency
20.4
Number of Cells
96
Cell type
Monocrystalline
Manufactured
US
Best unit price
$181.00 ($0.60 per watt)
Best system price
Installed 5.1kW system
$11,003.04
($2.16 p/w)
CS6K-300MS overview
Rated power
300 watts
Efficiency
18.33
Number of Cells
60
Cell type
Monocrystalline
Manufactured
CA
Best unit price
$196.11 ($0.65 per watt)
Best system price
Installed 5.1kW system
$9,948.02
($1.95 p/w)
LR6-60-HPB-300M overview
Rated power
300 watts
Efficiency
18.1
Number of Cells
120
Cell type
Mono PERC
Manufactured
CN
Best unit price
$172.00 ($0.56 per watt)
Best system price
Installed 4.9kW system
$9,568.53
($1.96 p/w)
LR6-60-HPB-305M overview
Rated power
305 watts
Efficiency
18.4
Number of Cells
120
Cell type
Mono PERC
Manufactured
CN
Best unit price
$165.00 ($0.53 per watt)
Best system price
Installed 5.0kW system
$9,761.72
($1.97 p/w)
LR6-60-HPB-310M overview
Rated power
310 watts
Efficiency
18.7
Number of Cells
120
Cell type
Mono PERC
Manufactured
CN
Best unit price
$228.00 ($0.60 per watt)
Best system price
Installed 4.9kW system
$9,579.65
($1.94 p/w)
LR4-60HPH-380M overview
Rated power
380 watts
Efficiency
20.9
Number of Cells
120
Cell type
Mono PERC
Manufactured
CN
Best unit price
$234.00 ($0.60 per watt)
Best system price
Installed 5.1kW system
$10,126.74
($2.00 p/w)
LR6-72HBD-390M overview
Rated power
390 watts
Efficiency
19.4
Number of Cells
144
Cell type
Mono PERC
Manufactured
CN
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 |
Best solar companies in the main cities of New York
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 2023 "solar systems with battery storage" are becoming more popular. These are known as hybrid systems.
How do solar panels work?
Grid-tied solar system
A grid-tied system is the most common type of solar system. It has no solar battery for backup power and utilizes net metering to maximize savings. Solar panels are mounted on your roof then wired together, and the power generated flows into an inverter where direct current (DC) electricity is converted into alternating current (AC) electricity. This electricity is either used by your home or is exported to the utility grid.
Hybrid solar system
In hybrid solar systems, rooftop solar panels are connected to both a solar battery and the electric grid. The solar electricity generated by your panels that your home does not use is stored in the battery instead of being sent to the grid, which 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.
Off-grid solar system
Off-grid solar systems are not connected to the grid at all, so all of your energy needs must be met by the sun. There is no utility to fall back on. The solar installation needs to power your home not only during the day, but after dark as well, so many solar panels and a large battery system are required. These systems are often expensive and don’t make sense for homes that have access to the grid.
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 2023?
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 2023.
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 incredible federal and state solar incentives. Between the Megawatt Block program, the state tax credit, and the federal tax credit, you can potentially cut the cost of installing solar in half!
Plus, because New York has some of the highest electricity rates in the country, homeowners can save big on their energy bills with solar panels.
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:
- What size solar system do you need?
- Answers the question of How many solar panels do I need?
- How many square feet of roof space you need for solar panels
- Solar electricity production in annual kWh (kilowatt-hours) you can expect from your solar system in New York
- The value of solar tax credits and other incentives you are entitled to based on the estimated size of system you need, your location and your utility provider.
- Likely cost based on an average of prices charged for solar systems of that size in the last year in New York or
- The likely payback period on your solar panels and your investment return.
- Your total lifetime solar savings based on each of the major solar finance options, a cash purchase, a cash purchase funded with a HELOC (home equity line of credit) and a zero-down PPA or third party lease product.
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.
