Solar Panel Cost in New York (2026 Estimate)

BySunMetricLab Editorial Team·Independent solar research and calculators

Data last updated September 10, 2026 · ranks #13 of 50 states for modeled payback

New York averages about 4.0 peak sun hours a day (below the national average) with an approximate residential electricity rate near 23¢/kWh, among the higher rates in the country. In the model used here, an 8 kW system in New York produces roughly 9,340 kWh a year and trims about $2,100 off annual electricity costs, paying back its net cost in about 8.7 years. Strong sun, high electricity prices, or both put New York among the faster paybacks in this comparison, and solar tends to make financial sense here for homeowners with suitable roofs.

Want the full picture beyond the numbers? Read the guide Does Solar Make Sense in New York? Incentives vs. Winter.

Estimated system cost and payback in New York

Costs assume roughly $3.35/watt installed for New York; the net column applies a 30% federal credit for comparison with quotes that include it. Savings and payback use the state's sun hours and rate above.

The 30% federal Residential Clean Energy Credit ended for systems paid for after December 31, 2025 under the 2025 federal budget law. Net-after-credit figures apply only if you still qualify (for example a 2025 expenditure, or a leased system where the installer passes a credit through). Confirm with a tax professional.

What moves the numbers in New York

Two inputs drive most of the difference between states: how much sun a system sees and what each offset kilowatt-hour is worth. New York's 4.0 sun hours set production, and its roughly 23¢/kWh rate sets what that production saves. The bigger unknowns are your roof, shading, and how your utility compensates exported power, since a lower export rate can pull real savings below the retail-rate figure above.

Net metering and export credits in New York

Rooftop solar in New York's investor-owned utility territories is compensated under what the Public Service Commission calls Phase One Net Metering. Exports are credited at the full retail kilowatt-hour rate and roll forward month to month, with any surplus at the end of your chosen annual cycle cashed out at the utility's avoided-cost rate. Systems interconnected since January 1, 2022 also pay a Customer Benefit Contribution, a fixed monthly charge assessed per kilowatt of installed capacity that varies by utility and is meant to fund efficiency and low-income programs.

The alternative is the Value of Distributed Energy Resources tariff, better known as the Value Stack, which prices exports by their hourly energy value plus separate capacity, environmental and locational components. It is mostly used by community solar and larger projects; residential installers keep homeowners on Phase One because the credits are simpler and generally worth more. On Long Island, LIPA and PSEG Long Island set their own net metering rules outside PSC jurisdiction.

New York solar incentives beyond the federal credit

New York layers several incentives on top of the federal credit. The state's Solar Energy System Equipment Credit is worth 25% of system cost up to $5,000 against state income tax, and unused credit carries forward for five years. NYSERDA's NY-Sun program pays an upfront rebate to your installer on a declining block schedule; as of 2026 the standard residential blocks in some regions are fully subscribed, though the Affordable Solar adder for income-qualified households may still be open, so confirm the current block with your installer.

Residential solar equipment is exempt from the 4% state sales tax, and many counties and cities waive their local portion as well. Under Real Property Tax Law section 487, the added value of a solar system is exempt from property taxes for 15 years unless your municipality has opted out. New York City goes further with a property tax abatement for solar that is claimed over several years; verify the current percentage with the NYC Department of Buildings.

Utilities and rate plans in New York

Con Edison serves New York City and Westchester, National Grid covers upstate from Buffalo to Albany, NYSEG and Rochester Gas & Electric (both Avangrid) serve the Southern Tier, Finger Lakes and Rochester, Central Hudson handles the mid-Hudson Valley, and PSEG Long Island operates the LIPA grid. Con Edison's retail rates are among the highest in the country, so net metering credits there are worth far more per kilowatt-hour than in National Grid's upstate territory, where rates sit closer to the national average. The Customer Benefit Contribution is a flat charge per kilowatt, so it trims a small fixed amount every month regardless of production.