Solar Panels in New York (NY)
Last updated: February 24, 2026
New York homeowners pay an average of $0.24/kWh for electricity — well above the national average of $0.16/kWh. With 3.8 peak sun hours per day and state-level incentives, an 8 kW solar system can pay for itself in about 11.3 years, then generate free electricity for 15-20+ more years.
Federal Residential Solar Tax Credit Repealed
The 30% residential solar tax credit (Section 25D) was repealed in early 2026. Homeowners who installed solar before the repeal can still claim the credit. Commercial projects retain the 30% ITC under Section 48/48E. New York state incentives remain available.
Electricity Rate
$0.24/kWh
Above national avg ($0.16)
Sun Hours/Day
3.8 hrs
Fair Solar Irradiance
8 kW System Cost
$27,200
$3.40/watt installed
Federal Residential ITC
Repealed
Section 25D (early 2026)
Annual Savings
$2,400
10,000 kWh/year
Payback Period
11.3 yrs
then free electricity for 15-20+ yrs
Solar Irradiance in New York (2026)
New York receives an average of 3.8 peak sun hours per day annually, equivalent to roughly 1387 kWh/m² per year of global horizontal irradiance (GHI). Summer peaks reach about 4.9 h/day, while winter lows drop to around 2.3 h/day.
This places New York in the fair solar irradiance band compared with other US states. At 3.8 kWh/m²/day, each 1 kW of rooftop solar in New York generates approximately 1,082 kWh/year (assuming 78% system performance after inverter, soiling, and temperature losses), which makes an 8 kW system produce around 10,000 kWh per year.
Data source: NREL National Solar Radiation Database (NSRDB), 1998-2020 typical meteorological year averages. New York (NY) values reflect the statewide average; coastal, mountain, and desert microclimates can vary by ±15% from this figure.
New York Solar Incentives (2026)
Federal residential tax credit was repealed in early 2026. New York continues to offer the following state and utility-level programs:
| Incentive | Value | Eligibility | Deadline | Source |
|---|---|---|---|---|
| Federal Section 25D ITC | 0% (Repealed Q1 2026) | N/A | Was 12/31/2025 | IRS |
| NY-Sun Initiative rebate | $200-400/kW (declining by region) | NY resident; participating contractor | Block-based (Megawatt Block) | NYSERDA |
| 25% state tax credit (cap $5000) | 25% credit, max $5,000 | NY resident; primary residence | Ongoing | NY DTF |
| Property + sales tax exemption | — | — | Verify with state agency | DSIRE |
⚠ Always verify state incentive deadlines, caps, and eligibility before signing a solar contract — programs change annually and many have annual funding caps that exhaust mid-year.
Major utility companies in New York
Check your utility's net metering policy, interconnection requirements, and rate structure before installing — rules vary significantly within New York:
- • Con Edison
- • National Grid
- • NYSEG (Avangrid)
- • PSEG Long Island
- • Central Hudson
Each utility has different rate structures, net metering caps, and time-of-use schedules. Visit your utility's website for current solar interconnection requirements and queue times.
Solar Cost Calculator for New York
Here's what an 8 kW system costs in New York and how savings accumulate over time (estimated 2026 data):
| Metric | Value |
|---|---|
| System cost (8 kW) | $27,200 |
| Federal Residential ITC (Section 25D) | Repealed |
| Net cost (before state incentives) | $27,200 |
| Annual production | 10,000 kWh |
| Electricity rate | $0.24/kWh |
| Annual savings | $2,400/yr |
| Payback period | 11.3 years |
| 10-year savings | $24,000 |
| 25-year total savings | $60,000 |
Estimated 2026 data based on New York average electricity rates and solar irradiance. Actual savings vary by usage, utility, and system configuration. Does not include state incentives or electricity rate increases (historically 2-3%/year), which improve returns further. The federal residential ITC (Section 25D) was repealed in early 2026.
New York Climate & Solar Performance
Climate Zone: Humid Continental / Cold Winters
New York's climate varies from the mild maritime influence of Long Island and NYC to the harsh continental winters of Upstate. Despite lower sun hours (3.4-4.0/day), New York is one of the best financial markets for solar due to extremely high electricity rates ($0.20-$0.35/kWh) and generous incentives. Cold winter temperatures actually boost panel efficiency, and snow typically slides off tilted panels. The economic payback is often faster than sunnier states with lower electricity costs.
Key Climate Factors for Solar in New York
- ✓ High electricity rates ($0.20-$0.35/kWh) drive fast financial payback
- ✓ 3.4-4.0 peak sun hours/day — lower irradiance but high economic value per kWh
- ✓ Cold winters boost panel efficiency (panels perform better in cold)
- ✓ Snow cover causes minor (1-3%) annual production loss
- ✓ Strong incentive stack (federal + state + NY-Sun) reduces cost by 50-60%
Net Metering in New York
Full Retail Net Metering / VDER
New York offers full retail rate net metering for residential systems under 25 kW. Larger systems use the Value of Distributed Energy Resources (VDER) tariff, which calculates credits based on time, location, and grid value. Monthly credits roll over, and annual true-up occurs in your anniversary month. New York's high retail rates ($0.20-$0.35/kWh) make net metering exceptionally valuable.
Export rate: Full retail rate ($0.20-$0.35/kWh depending on utility)
Solar Incentives in New York
Federal Investment Tax Credit (ITC)
Residential credit repealed (Section 25D)The residential solar tax credit (Section 25D) was repealed in early 2026. However, New York's strong state incentives (NY-Sun + 25% state tax credit + property/sales tax exemptions) continue to make solar highly attractive. Commercial projects retain the 30% ITC.
NY-Sun Incentive
$0.20-$0.40/watt upfront incentiveNYSERDA's NY-Sun program provides per-watt upfront incentives for residential solar. Rates vary by utility territory and block availability. For an 8 kW system, this can provide $1,600-$3,200 in incentives.
New York State Tax Credit
25% of system cost, up to $5,000New York offers a state income tax credit of 25% of net solar system cost (after other incentives), capped at $5,000. Can be carried forward for up to 5 years.
Property Tax Exemption (RPTL 487)
15-year exemption on added valueSolar installations are exempt from property tax increases for 15 years under Real Property Tax Law Section 487. Some municipalities have opted out — check with your local assessor.
Sales Tax Exemption
8% savings on equipmentSolar equipment is exempt from the 4% state sales tax and most local sales taxes, saving $1,500-$2,500 on a typical system.
Top 2 Recommended Solar Panels for New York
With 3.8 sun hours/day, New York homeowners need the most efficient panels to maximize every hour of sunlight — especially given electricity rates of $0.24/kWh where every kWh counts:
Why for New York: LONGi's 23.0% efficient HPBC panel with 620W output. Fewer panels needed for full offset. Excellent value when combined with NY-Sun incentives and state tax credit.
Why for New York: REC's HJT panel with 22.6% efficiency and the lowest degradation in our database. Maximizes 25-year energy production in New York's moderate climate. Norwegian-designed, built for all climates.
Recommendation Updates
As of 2026-05-23: Maxeon 7 470W previously listed here is excluded — Maxeon Solar Technologies received NASDAQ delisting notice (April 2026) and is in Interim Judicial Management. Mexican-assembled Maxeon modules have been detained by US CBP since July 2024 under UFLPA compliance review (CBP denied Maxeon's protests in March 2025). Additionally, model 'Maxeon 7 470W' could not be located in maxeon.com/technical-documents — official datasheet lists 445W/24.1% as the highest residential variant. Recommendations are limited to currently-shipping products with manufacturer-published datasheets.
Last reviewed: 2026-05-23 · See our methodology
Top 3 Recommended Batteries for New York
Pairing solar with battery storage provides backup power during outages and can optimize savings with time-of-use rates. With New York's full retail net metering, a battery is optional but valuable for backup:
| Battery | Capacity | Power | Chemistry | Warranty |
|---|---|---|---|---|
| HomeGrid Stack'd Series 38.4kWh | 38.4 kWh | 34.4 kW | LFP (Lithium Iron Phosphate) | 10 yr |
| HomeGrid Stack'd Series 28.8kWh | 28.8 kWh | 25.8 kW | LFP (Lithium Iron Phosphate) | 10 yr |
| BYD Battery-Box Premium HVM 22.1 | 22.08 kWh | 22.08 kW | LFP (Lithium Iron Phosphate) | 10 yr |
Frequently Asked Questions
How much do solar panels cost in New York in 2026?
The average cost of an 8 kW solar system in New York is approximately $27,200 ($3.40/watt installed). Note: The federal residential solar tax credit (Section 25D) was repealed in early 2026, so the full system cost applies unless state incentives are available. State-level incentives may reduce your out-of-pocket cost. Get 3-5 quotes from local installers for accurate pricing.
Is the federal solar tax credit available in New York?
The federal residential solar tax credit (Section 25D) was repealed in early 2026. Homeowners who installed solar before the repeal can still claim the credit for that tax year. Commercial solar projects continue to receive the 30% ITC under Section 48/48E. New York still offers state-level incentives that can reduce your solar costs. Consult a tax professional for the latest guidance.
Is solar worth it in New York with low sun hours?
Absolutely. Despite only 3.8 peak sun hours/day, New York is one of the best financial markets for solar in the US. Extremely high electricity rates ($0.20-$0.35/kWh) mean every kWh your system produces has exceptional value. Combined with the NY-Sun incentive ($0.20-$0.40/watt), 25% state tax credit (up to $5,000), and property/sales tax exemptions, payback can be faster than in many sunnier states.
How much can I save with solar in New York?
An 8 kW solar system in New York produces approximately 10,000 kWh/year, saving about $2,400 annually at the average electricity rate of $0.24/kWh. The estimated payback period is 11.3 years. Over 25 years, total savings can reach $60,000.
Does New York have net metering?
Full Retail Net Metering / VDER: New York offers full retail rate net metering for residential systems under 25 kW. Larger systems use the Value of Distributed Energy Resources (VDER) tariff, which calculates credits based on time, location, and grid value. Monthly credits roll over, and annual true-up occurs in your anniversary month. New York's high retail rates ($0.20-$0.35/kWh) make net metering exceptionally valuable.
What is the best solar panel for New York?
Our top pick for New York is the LONGi Hi-MO 7 620W (23% efficiency, -0.28%/°C temp coefficient). LONGi's 23.0% efficient HPBC panel with 620W output. Fewer panels needed for full offset. Excellent value when combined with NY-Sun incentives and state tax credit.
What is the payback period for solar in New York?
The estimated payback period for an 8 kW solar system in New York is 11.3 years. This is calculated as: system cost ($27,200) divided by annual savings ($2,400/year). New York's high electricity rates accelerate payback significantly. State incentives may shorten this further.
Do I need a battery for solar in New York?
A battery is not required for grid-tied solar in New York, but it provides backup power during outages and can increase savings with time-of-use rate optimization. New York's incentive programs may include battery storage rebates.
Does New York have solar incentives?
Yes, New York offers state-level solar incentives: NY-Sun Incentive ($0.20-$0.40/watt upfront incentive), New York State Tax Credit (25% of system cost, up to $5,000), Property Tax Exemption (RPTL 487) (15-year exemption on added value), Sales Tax Exemption (8% savings on equipment). Note that the federal residential solar tax credit (Section 25D) was repealed in early 2026. Check the DSIRE database for the latest program details.
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