* Cost data based on quotes for fully-installed solar panel systems submitted on our platform. Prices are shown after applying the 30% federal tax credit.
Updated August 19, 2020
New York City is a great place to go solar. You’re probably using Con Edison as your utility. Con Eidson has very high electric rates, which helps make solar a great investment in The Big Apple.
The most significant incentive to install solar panels in NYC is the 26% federal tax credit. However, the tax credit is set to step down to 22% at the end of 2020. This means in order to maximize your savings potential, the best time to go solar in New York City is now.
Another key incentive for going solar in New York City is the New York state tax credit, which gives you extra savings on the cost of a solar installation. By entering your address into our solar panel calculator, you can see what other local incentives are available in your area.
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Prices based on a 6.8kW system, after 30% federal tax credit
If you live in New York City, you can take advantage of the New York state tax credit which is equal to 25% of the costs of you solar panel installation. The tax credit is capped at $5,000. This combined with the federal tax credit provide subsantial savings on the cost of a solar installation.
New York City residents can take advantage of Con Edison's megawatt block incentive. Each investor owned utility in New York is assigned a certain capacity that is divided into 'blocks'. Each block has a cap for the amount of watts that can be installed. The incentive amount decreases as you move from block to block.
Currently, Con Edison is in Block 9 of the program. This means homeowners who decided to go solar will recieve $0.20 per watt installed. So, if you install a 6 kilowatt (kW) solar system, you'll recieve $1,200.
But, if you wait too long, the incentive amount could drop! The sooner you go solar, the more savings you'll get!
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.
The most significant incentive to install solar panels for homes and and businesses is the federal tax credit. Right now, the federal tax credit is equal to 30% of the total cost to install a solar system. The amount of the tax credit is then deducted from your federal taxes. You can claim the credit over several years if the amount you owe in taxes is less than the amount of your tax credit. You can only take advantage of the federal tax credit if you pay federal income taxes. At the end of 2032, the amount of the tax credit will fall to 26%. Even though there is no rush to get the maximum tax credit value, you don’t want to wait when it comes to a financial investment like installing solar. The best time to go solar is now.
The answer to this question depends on your electricity usage. Generally speaking, the higher your power usage, the greater your potential savings are from installing solar.
The average monthly electricity usage in New York is about 595 kWh per month. However, you are most likely using a lot more than this since this average includes small apartments and condos.
The New York solar panel savings calculator uses our database of electric rates from local utilities to convert your monthly power bill into how much electricity your home uses. From there, the calculator can work out how many solar panels you need to offset your power usage, how much a solar system will cost based on prices of local solar companies, and the amount of money you will save on your electric bill.
(forecast avg New York electric rates over the next 25 years)
(Savings shown after repayments of capital)
Solar panels have fallen in price by more than 80% in the last ten years. In 2023 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.
Check out all of the ways energy providers of can help you be more energy efficient and save money.
|Residential Clean Energy Tax Credit||Federal||Personal Tax Credit|
|Solar Sales Tax Exemption||State||Sales Tax Incentive|
|Value of Distributed Energy Resources - Phase One Net Metering||State||Net Metering|
|NY-Sun Smart Energy Loan||State||Loan Program|
|Residential Solar State Tax Credit||State||Personal Tax Credit|
|NYSERDA Retail Energy Storage Incentive Program||State||Battery Rebate|
|Net Metering||State||Net Metering|
|NY-Sun Affordable Solar Program||State||Low-Income Program|
|Property Tax Exemption||State||Property Tax Incentive|
|NY-Sun Megawatt Block Program - Con Edison - Block 9||Utility||Rebate Program|
Eligibility: Federal incentive
Type: Personal Tax Credit
Eligibility: State incentive
Type: Sales Tax Incentive
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.