Is solar worth it in New York?
For a typical New York home in 2026, solar is worth it: about a 6.8-year payback and $54,900 saved over 25 years after paying for the system. Check your own home, because roofs, usage and utilities vary a lot.
- Payback, typical home
- 6.8 yrs5.3 kW, paying cash
- Electricity price
- 28.4¢per kWh, U.S. 18.0¢
- Solar production
- 1,330kWh per kW per year
- Exports credited at
- RetailFull retail net metering
The numbers for a typical New York home
| Electricity use | 584 kWh a month (New York average) |
|---|---|
| Best-value system | 5.3 kW, producing 7,048 kWh a year (101% of use) |
| Price | $17,810 at about $3.20/W; $13,358 after state incentives |
| First-year savings | $1,899 |
| Payback | 6.8 years |
| 25-year net | $54,900 (15.3% a year return) |
| Rate increase assumed | 3.6% a year, from New York's 2015–2025 history |
Paying cash, no federal credit, 5% discount rate, microinverters, $25 per kW a year for maintenance and repairs. Methodology.
Why it comes out this way
- Electricity is expensive: 28.4¢ per kWh over the last 12 months, 58% above the U.S. average (18.0¢).
- Most utilities credit exported solar at or near the retail rate, so you get full value for midday surplus.
- A typical system here produces about 1,330 kWh per kW per year (ranked #34 of 51).
- There is no federal tax credit for homeowners who buy in 2026, which adds several years to payback compared with 2025.
Net metering and export rules in New York
Full retail net metering. New York residential solar uses 'Phase One' net metering: exports earn full retail kWh credits that roll forward, but new customers since 2022 pay a monthly Customer Benefit Contribution (CBC) charge of roughly $0.70-$1.30 per kW of system size.
kWh-for-kWh full retail credit; CBC charge per kW-DC monthly offsets part of the value.
- Netting: monthly
- Unused credits: Credits roll month to month. Annual treatment differs by utility/vintage: some tariffs reconcile residential PV excess annually at avoided cost (e.g., PSEG LI pre-2018, Energy Co-op summary), others report indefinite rollover (NYSEG). Verify per utility; size to usage.
- System size limit: 25 kW
- Fixed charges: CBC ~$0.69-$1.33/kW-month depending on utility (e.g., Con Ed ~$0.94, National Grid ~$0.88, NYSEG ~$0.72, O&R ~$1.33 per one comparison).
- Last major change: PSC July 2020 order established CBC; effective for interconnections from Jan 1, 2022.
- Pending: PSC VDER/NEM reviews; annual CBC updates.
Read net metering explained to see why export rules can swing payback by years.
| Utility | Export credit | Notes |
|---|---|---|
| Consolidated Edison | ~100% of retail | Phase One NEM with CBC ~$0.94/kW-mo (approx). |
| National Grid (Niagara Mohawk) | ~100% of retail | Phase One NEM with CBC ~$0.88/kW-mo. |
| NYSEG | ~100% of retail | CBC ~$0.72/kW-mo; credits roll over through 20-year term. |
| RG&E | ~100% of retail | Phase One NEM with CBC. |
| Central Hudson | ~100% of retail | Phase One NEM with CBC. |
| Orange & Rockland | ~100% of retail | CBC ~$1.33/kW-mo. |
| PSEG Long Island (LIPA) | ~100% of retail | LIPA-specific successor tariff with CBC-like charge. |
Solar incentives in New York
The federal 30% Residential Clean Energy Credit ended for systems installed after December 31, 2025. What that means.
| Program | Type | What you get | Status |
|---|---|---|---|
| NY Solar Energy System Equipment Credit | tax credit | 25% of system cost up to $5,000; 5-year carryforward. Eligibility: Primary residence | active |
| NY-Sun Residential Incentive | rebate | Per-watt MW Block incentive; standard-income blocks reportedly closed in Con Ed and Upstate by 2026 - verify current block. Eligibility: Residential via participating contractor | unknown |
| NY-Sun Affordable Solar | low income | Enhanced per-watt incentive for income-eligible homes (reported ~$0.40-$0.80/W). Eligibility: Household income <80% AMI/SMI | active |
| Sales tax exemption | sales tax exemption | State sales tax exemption on residential solar (localities may opt out). Eligibility: Residential | active |
| RPTL 487 property tax exemption | property tax exemption | 15-year exemption from added assessed value (local opt-out possible). Eligibility: Depends on locality | active |
| NYSERDA residential storage incentive | battery incentive | Retail storage incentives in Con Ed/LI regions - amounts not verified. Eligibility: Con Ed / PSEG LI customers | unknown |
What solar costs in New York
A fair cash price is around $3.20 per watt before incentives. For the 5.3 kW system that fits a typical home, expect roughly $14,400 to $20,400; smaller systems cost more per watt.
Public installation records (LBNL Tracking the Sun and state data, 19,375 owned systems since 2024) show a median of $3.95/W, with the middle half between $3.25 and $5.39. These prices include loan dealer fees, which is why cash quotes are often lower.
How many homes have solar
- Homes with net-metered solar (2025)
- 251,828
- Share of homes
- 3.3%
- Residential solar capacity
- 1,884 MW
- Growth over the past year
- +12.7%
- New systems with a battery
- 5%
- New systems leased or PPA
- 28%
Sources: EIA-861 (2025), EIA small-scale solar estimates, LBNL Tracking the Sun and state interconnection data.
Electric utilities in New York
| Utility | Homes served | Price (2026 est.) | Typical use | Typical-home verdict |
|---|---|---|---|---|
| Con Edison | 3,088,999 | 39.8¢ | 380 kWh/mo | Worth it |
| National Grid (Upstate New York) | 1,536,569 | 21.8¢ | 658 kWh/mo | Worth it |
| PSEG Long Island (LIPA) | 1,032,490 | 28.1¢ | 744 kWh/mo | Worth it |
| NYSEG | 793,702 | 24.6¢ | 747 kWh/mo | Worth it |
| RG&E | 353,617 | 24.7¢ | 703 kWh/mo | Worth it |
| Central Hudson | 270,607 | 30.2¢ | 692 kWh/mo | Worth it |
| Orange & Rockland | 213,057 | 28.5¢ | 704 kWh/mo | Worth it |
| Village of Fairport | 16,414 | 8.4¢ | 1,247 kWh/mo | Not worth it |
| Jamestown Board of Public Util | 15,518 | 9.2¢ | 876 kWh/mo | Not worth it |
| Village of Freeport | 13,422 | 14.6¢ | 796 kWh/mo | Worth it |
| City of Plattsburgh | 8,809 | 5.8¢ | 1,554 kWh/mo | Not worth it |
| Town of Massena | 8,122 | 8.6¢ | 1,235 kWh/mo | Not worth it |
| FirstEnergy Pennsylvania Electric | 3,394 | 20.5¢ | 885 kWh/mo | Worth it |
Solar by city in New York
- New York5.6-yr payback · Worth it
- Buffalo9.7-yr payback · Worth it
- Yonkers5.7-yr payback · Worth it
- Rochester8.6-yr payback · Worth it
- Syracuse9.8-yr payback · Worth it
- Albany9.4-yr payback · Worth it
- New Rochelle5.7-yr payback · Worth it
- Cheektowaga8.8-yr payback · Worth it
- Mount Vernon5.7-yr payback · Worth it
- Schenectady9.2-yr payback · Worth it
- Utica10.1-yr payback · Worth it
- White Plains5.7-yr payback · Worth it
- Hempstead6.6-yr payback · Worth it
- Tonawanda Town9.4-yr payback · Worth it
- Levittown6.8-yr payback · Worth it
- Troy9.4-yr payback · Worth it
- Irondequoit8.6-yr payback · Worth it
- Niagara Falls9.4-yr payback · Worth it
- Binghamton8.8-yr payback · Worth it
- West Seneca8.7-yr payback · Worth it
- Freeport12.2-yr payback · Worth it
- Hicksville6.7-yr payback · Worth it
- West Babylon6.6-yr payback · Worth it
- Valley Stream5.6-yr payback · Worth it
- Coram6.5-yr payback · Worth it
- Kiryas Joel7.1-yr payback · Worth it
- Central Islip6.8-yr payback · Worth it
- Brighton8.8-yr payback · Worth it
- East Meadow6.8-yr payback · Worth it
- Commack6.6-yr payback · Worth it
- Elmont5.6-yr payback · Worth it
- Baldwin12.3-yr payback · Worth it
- Long Beach6.8-yr payback · Worth it
- New City6.8-yr payback · Worth it
- Spring Valley6.8-yr payback · Worth it
- Uniondale6.5-yr payback · Worth it
- Ithaca9-yr payback · Worth it
- Huntington Station6.7-yr payback · Worth it
- Poughkeepsie6.6-yr payback · Worth it
- Centereach6.6-yr payback · Worth it
- Rome9.9-yr payback · Worth it
- Bay Shore6.6-yr payback · Worth it
- Oceanside6.5-yr payback · Worth it
- Port Chester5.8-yr payback · Worth it
- Franklin Square6.6-yr payback · Worth it
- Middletown6.9-yr payback · Worth it
- North Tonawanda9.5-yr payback · Worth it
- Harrison5.7-yr payback · Worth it
- Saratoga Springs8.4-yr payback · Worth it
- Newburgh6.6-yr payback · Worth it
- Shirley6.7-yr payback · Worth it
- Jamestown10.1-yr payback · Worth it
- Monsey6.7-yr payback · Worth it
- Glen Cove7-yr payback · Worth it
- Deer Park6.5-yr payback · Worth it
- Lindenhurst6.7-yr payback · Worth it
- Ossining5.8-yr payback · Worth it
- West Islip6.8-yr payback · Worth it
- Holbrook6.7-yr payback · Worth it
- Auburn8.8-yr payback · Worth it
- Elmira8.7-yr payback · Worth it
- Plainview6.8-yr payback · Worth it
- Rockville Centre6.5-yr payback · Worth it
- Peekskill5.8-yr payback · Worth it
Protect yourself when buying
- Check the license. No state contractor license; licensing is local (NYC DOB, Nassau/Suffolk home improvement licenses, local electrical licenses). NYSERDA requires participating contractors. Look up an installer
- Cancellation rights. 3 business days to cancel many home-solicitation sales. NYSERDA Residential Solar Disclosure Form required for NY-Sun incentive projects; GBL home improvement contract rules. How to cancel
- HOA and solar access. Limited - no strong statewide HOA solar protection identified; verify.
- Community solar. Yes - Community Distributed Generation (VDER).
Installers active in New York
Ranked by installations in public records, not by payment. Volume isn't quality: always check licenses and reviews.
- Sunrun 28,607 installs
- Tesla Energy 17,628 installs
- SunPower 12,257 installs · bankrupt
- Igs Energy 6,616 installs
- Plugpv 4,918 installs
- Wiltshire Renewable Energy Systems 4,387 installs
- Venture Home Solar 4,254 installs
- Sunation Solar Systems 4,044 installs
- Kasselman Solar 3,684 installs
- Momentum Solar 3,335 installs
- Nyss 3,017 installs
- Trinity Solar 3,001 installs
- Empower Solar 2,951 installs
- Infinity Solar Systems 2,941 installs
- Brooklyn Solarworks 2,855 installs
Questions about solar in New York
Is solar worth it in New York in 2026?
For a typical New York home, solar is worth it. A 5.3 kW system costing about $13,358 after state incentives saves about $1,899 in the first year and pays back in about 6.8 years. Your result depends on your roof, usage, utility and price, so run the calculator for your address.
How much do solar panels cost in New York?
A reasonable cash price is around $3.20 per watt before incentives, or roughly $14,400 to $20,400 for a 5.3 kW system. Public installation records for New York show a recent median of $3.95/W, which often includes loan dealer fees.
Does New York have net metering?
New York residential solar uses 'Phase One' net metering: exports earn full retail kWh credits that roll forward, but new customers since 2022 pay a monthly Customer Benefit Contribution (CBC) charge of roughly $0.70-$1.30 per kW of system size.
Is there a solar tax credit in New York?
The 30% federal credit for homeowners ended for systems installed after 2025. New York offers: NY Solar Energy System Equipment Credit. Solar may be exempt from property tax.
How do I check a solar installer's license in New York?
No state contractor license; licensing is local (NYC DOB, Nassau/Suffolk home improvement licenses, local electrical licenses). NYSERDA requires participating contractors.. Look up any installer with the state's license search at https://www.nyserda.ny.gov/All-Programs/NY-Sun.
Policy research current as of October 2026; sources include votesolar.org, solarreviews.com, nyserda.ny.gov. Electricity data: EIA, through July 2026. Found something out of date? Tell us.