New York Solar Guide 2025: Incentives, Costs & Savings

Here's something that surprises a lot of people: New York has quietly become one of the best states in the country for residential solar. Not despite the weather, but because of how the economics work out.

Yes, New York gets less sun than Arizona or California. But New York also has some of the highest electricity rates in the nation—especially in the NYC metro area and Long Island. When you combine expensive electricity with incredibly generous state incentives and strong net metering policies, the math starts to look very different.

I've analyzed solar markets across the country, and New York consistently ranks among the top 5 for residential solar ROI. Here's what New York homeowners need to know to take advantage.

Solar Costs in New York

Average installed price: $3.00-$3.40 per watt before incentives.

New York pricing runs above national average due to higher labor costs and installation complexity (older homes, varied roof types). But here's what makes New York special: the incentive stack is so generous that your net cost often ends up lower than in "cheap solar" states.

System Size	Before Credits	After All Incentives
6 kW	$18,000-$20,400	$6,000-$9,000
8 kW	$24,000-$27,200	$9,000-$13,000
10 kW	$30,000-$34,000	$12,500-$17,000

The incentive stacking is what makes New York exceptional. You can get 50%+ off through combined programs—federal credit, state credit, NYSERDA rebate, plus tax exemptions.

What Affects Your Specific Cost

Your actual cost depends on several factors:

• Location: NYC metro area installations cost more due to labor rates and building complexity. Upstate tends to be more affordable.
• Building type: Single-family homes are straightforward. Condos and co-ops face additional hurdles (board approval, shared roofs).
• Roof age and condition: New York's harsh winters mean many roofs need replacement before solar. Plan accordingly.
• Electrical panel: Many older New York homes have 100-amp panels that need upgrading. Add $1,500-$3,000 for panel upgrades if needed.

New York Solar Incentives

Federal Investment Tax Credit: 30%

This is the single largest incentive available and applies to everyone regardless of state. Deduct 30% of your total system cost from federal taxes. On a $24,000 system, that's $7,200 back.

Critical deadline: This expires for residential systems December 31, 2025. There is no planned extension. After 2025, residential solar owners receive no federal tax credit at all.

NY-Sun Megawatt Block Incentive: Up to $0.20/watt

NYSERDA's NY-Sun program provides direct rebates based on system size. The amount varies by utility territory and available funding in each "block."

Current incentives range from $0.10-$0.20 per watt depending on location and block status. On an 8 kW system, that's $800-$1,600.

Check the NY-Sun website for current block status and rates in your area.

New York State Tax Credit: 25% (Capped at $5,000)

New York offers a state tax credit of 25% of system cost, capped at $5,000.

This is one of the most generous state credits in the country. Combined with federal, you could get $10,000+ in tax credits on a typical system.

Property Tax Exemption

Solar installations are 100% exempt from property tax increases for 15 years. Adding $20,000 of solar won't raise your property taxes.

Sales Tax Exemption

Solar equipment and installation are exempt from New York's 8% sales tax. That's an automatic $1,600-$2,400 savings on typical systems.

Net Metering

New York has strong net metering policies. Utilities must credit you at the full retail rate for excess electricity sent to the grid.

Credits roll over month to month. At the end of each year, any remaining credits are paid out (though at a lower rate than retail).

Some utilities are transitioning to "Value of Distributed Energy Resources" (VDER) for new installations. VDER can be more or less favorable than traditional net metering depending on your situation.

What Solar Produces in New York

New York averages about 1,100-1,300 kWh per installed kW annually. That's lower than sunbelt states but still productive.

An 8 kW system generates roughly 9,000-10,400 kWh per year. For a home using 10,000 kWh annually, that's close to 100% offset.

Electricity Prices

New York electricity rates are among the highest in the nation:

• Upstate: $0.17-$0.20/kWh
• Long Island (PSEG-LI): $0.21-$0.25/kWh
• NYC area (ConEd): $0.25-$0.35/kWh

High rates mean higher savings per kWh generated. A system that saves $1,500/year in Florida might save $2,500/year in New York.

Community Solar

Can't install panels on your roof? New York has an active community solar market. You subscribe to a portion of a solar farm and receive credits on your electricity bill.

Typical savings: 10-15% off your electricity bill with no upfront cost and no installation required.

Battery Storage in New York

Home batteries are increasingly popular in New York for several reasons:

• Grid reliability: Storm-related outages are becoming more frequent. Batteries provide peace of mind.
• Time-of-use optimization: Some NY utilities offer time-of-use rates where batteries can save additional money.
• VDER benefits: Under VDER, storing power for personal use often beats exporting it.

The 30% federal tax credit applies to batteries when installed with solar (or added within certain timeframes). Popular options in New York include:

• Tesla Powerwall 3: 13.5 kWh, $14,500 installed, $10,150 after tax credit
• Enphase IQ Battery: Modular 5-60 kWh, excellent for smaller homes or phased installations
• LG RESU Prime: 16 kWh, competitive pricing, proven reliability

For New York City and Long Island homeowners, where outages can be especially disruptive, battery backup is worth serious consideration. The combination of high electricity rates and storm vulnerability makes the investment more justifiable than in many other regions.

Should You Add Batteries?

The decision depends on your priorities and budget:

• Yes, consider batteries if: You experience frequent outages, have medical equipment that needs power, work from home, or are on an unfavorable VDER rate where storing power beats exporting it.
• Maybe wait if: Your net metering credits are good, you rarely lose power, or budget is tight. Solar-only systems still make excellent financial sense in New York.
• Budget consideration: A 13.5 kWh battery adds $10,000+ after incentives. Many homeowners install solar first and add batteries later as prices continue to fall.

Financing Options in New York

New York homeowners have several ways to pay for solar:

Cash Purchase

With New York's stacked incentives, cash buyers get exceptional returns. A $24,000 system might net out to $10,000-$12,000 after all credits and rebates. With $2,000-$2,500 annual savings (especially in ConEd territory), payback runs just 4-6 years.

Solar Loans

Solar loans are popular in New York. Rates range from 4-8% depending on credit. The strategy: finance the full amount, then use the combined $10,000+ in tax credits as a lump-sum principal payment. This dramatically reduces your loan balance and monthly payments.

NYSERDA Low-Interest Loans

NYSERDA partners with lenders to offer low-interest solar loans to qualified New York residents. Check the Green Jobs - Green New York program for current rates and eligibility.

What to Expect During Installation

The New York solar installation timeline:

1. Site Assessment (Week 1): Installer evaluates your roof, especially important in NYC area with varied building types
2. Design and Proposal (Week 1-2): Detailed system design with production estimates adjusted for New York's climate
3. Permitting (Weeks 2-6): NYC can be slower due to additional requirements; upstate generally faster
4. Installation (1-3 days): Depends on roof complexity and building height
5. Inspection and Activation (Weeks 4-8): Utility interconnection timelines vary by provider

Total timeline: 8-14 weeks. NYC installations often run longer due to building complexity and permit requirements.

Common Mistakes New York Homeowners Make

• Missing NYSERDA rebates: Block incentives vary by region and funding availability. Some areas have higher rebates than others.
• Ignoring VDER implications: Some utilities are transitioning from net metering to VDER. Understand which policy applies to you.
• Underestimating older home complexity: Older homes may need electrical panel upgrades. Factor this into quotes.
• Skipping community solar analysis: If your roof isn't ideal, community solar might offer better economics than a suboptimal rooftop system.
• Waiting past 2025: The federal tax credit expires December 31, 2025. Combined with state incentives, 2025 offers the best economics.

Bottom Line

New York's incentive stack is remarkable. Federal credit, state credit, NYSERDA rebate, plus property and sales tax exemptions can cut costs by 50% or more. For a state with relatively modest sunshine, these economics are exceptional.

Combined with high electricity prices and good net metering, payback periods often run 5-7 years. After that, essentially free electricity for another 18-20 years. On Long Island and in NYC, the savings are even more dramatic due to higher utility rates.

The federal tax credit expires December 31, 2025. If you're considering solar in New York, 2025 is definitively the year to act. The combination of federal and state incentives may never be this favorable again.