New York Solar Incentives: Tax Credits & Rebates Guide 2024
Written by Luke Daugherty
|
Edited by Hannah Whatley
|
Last updated 09/06/2023
Estimate your home’s solar cost and savings
20-year savings
$5,473
Incentives
$1,435
Upfront cost
$5,005
Payback period
5 years
At SaveOnEnergy, we work to offer accurate information with editorial integrity. Our partners do not direct our editorial content, though we may reference their products in our posts. Read more about how we make money.
Is solar right for your home?
Get an estimate of solar cost and savings at your home.
Key Points
The solar industry is well established in New York, and residents have access to a variety of solar incentives to make solar affordable.
If you go solar in New York, you could save $23,000 or more in the long run, depending on the size of your system, equipment, and location.
SaveOnEnergy can connect you with top-tier New York solar companies to get your project off the ground.
Solar power in New York
New York is among the top 10 states in the nation for investing in solar energy. With enough solar panels to power nearly 760,000 homes, the Empire State gets about 4.4% of its energy from solar sources, according to data from the Solar Energy Industries Association (SEIA). These numbers will only grow, as New York plans to install 8,662 megawatts (MW) over the next five years.
If you live in New York, you could save money and reduce your environmental footprint by installing solar panels on your home. You’ll likely need to spend $20,000 or more upfront, but you stand to gain a significant return on your investment. Keep reading to learn more about the costs and benefits of solar panels in New York and how to decide if they’re right for your home.
Ready to go solar? Call 877-307-7668to be connected with a solar expert today!
Get your free solar savings estimate
You can significantly lower your energy costs by investing in solar panels. Enter some basic information below and we’ll provide an instant, free estimate of solar cost and savings for your home.
New York solar panel cost
Solar panels are priced per watt. According to data from Find Energy, the average solar system in New York is $3.65 per watt, with an average size of 6 kilowatts (kW), for a total system cost of about $21,900 before tax credits or incentives. The exact price you’ll pay for your custom system depends on the size of your system, the type of solar panels you choose, installation costs, and more.
*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.
How does New York solar save you money?
Once you have an idea of the average system cost, you can then factor in solar incentives and long-term savings to understand your potential return on investment. The 30% federal tax credit, which we’ll explore more below, can knock over $6,500 off the cost of a typical New York solar energy system, and you may be able to save even more with state incentives and rebates.
Residents in the Empire State pay around $130, on average, for their monthly electricity bill. If your solar panels fully cover your energy needs, you can eliminate this expense from your budget. In that case, you’d recoup the cost of solar panels in New York within around 10 years. You can calculate your payback period using this formula:
(Total system cost – 30% tax credit savings) ÷ Annual electricity bill costs = Payback period
$15,330 system cost ÷ $1,560 energy bills = 9.8 years
You can use the following table to estimate your solar savings in New York.
System
size
Total cost
Number
of panels
4 kW
$14,600
10–13
6 kW
$21,900
15–20
8 kW
$29,200
20–27
10 kW
$36,500
25–33
12 kW
$43,800
30–40
*Estimated panel count is based on the average panel size ranging from 300 to 400 watts.
The best New York solar panel incentives or rebates
There’s no doubt that solar panels are a large investment, but the federal government and many state and local governments offer financial incentives to help reduce the cost burden for homeowners.
New York homeowners can use the federal solar tax credit to receive 30% back on the purchase of solar panels for their primary or secondary homes (though there can be limitations depending on how much of the year you spend in each home). Known as the Residential Clean Energy Credit, it can help you recoup thousands of dollars on the cost of solar panels in New York.
New York also has a state tax credit, which allows you to save another 25% — up to $5,000 — on your solar panel purchase. Here’s a look at this and a few other popular New York solar incentives.
The NY-Sun program offers cash-for-watt rebates through partnerships with utility companies throughout New York. Amounts vary by utility company and are based on the number of blocks available per region.
New York exempts solar panels and connected battery storage systems from property tax assessments. For the first 15 years after installation, you won’t pay taxes on the value this equipment adds to your home.
Solar incentives in New York City
Residents in New York City can take advantage of the Solar Electric Generating Systems Tax Abatement Program to receive a reduction in property taxes for their solar property improvements.
The program offers a 5% tax abatement on eligible equipment for the first four years after installation.
Residents in Buffalo don’t pay local sales tax on the purchase of solar equipment for their home. Given that most municipalities charge between 3% and 4% on the retail cost of solar panels, this exemption represents a significant savings.
You don’t need to do anything to take advantage of this solar incentive. Sales tax will automatically be excluded when you buy solar panels in Buffalo and other cities that have adopted the local sales tax exclusion.
Solar incentives in Rochester
Rochester Public Utilities offers a $500 rebate on the purchase of New York solar panels.
Rebates apply to systems of at least 2 kilowatts.
Funds are available on a first-come, first-served basis. Fill out this application to find out if you qualify.
Why choose New York solar power?
There are many benefits of choosing solar energy in New York, including reducing your energy costs, establishing energy independence, and helping the environment.
Lower energy costs
One of the greatest benefits of installing solar panels on your home is the money you can save on your energy bill. When your home is running on solar energy, you’re paying less to use electricity from the traditional grid. Solar panels also increase the value of your home, which is money in your pocket if you decide to sell.
Increase energy independence
Installing solar panels on your home can help you establish energy independence, meaning you’re not reliant on the traditional electricity grid to power your home. If you have a solar battery, you can store excess energy produced by your solar panels so that you can keep the lights on if the traditional grid goes down.
Go green
Traditional electricity generation emits greenhouse gasses like carbon dioxide into the atmosphere. However, solar power is a form of green energy, and a renewable resource.
Should I buy or lease my solar panels?
When you decide to install solar panels on your home, you’ll have the choice to either buy or lease your panels. While both options have some benefits, buying your panels offers the best financial payoff in the long run.
Buying your own solar panels results in the greatest long-term energy savings and also allows you to take advantage of the state and federal tax credit, which isn’t available when you lease or enter a power purchase agreement (PPA). Additionally, purchasing solar panels can increase your home’s resale value by $15,000.
While leasing solar panels isn’t the most cost-effective option, it can still be the right choice for some people. Solar panel leases come with a lower upfront cost, making them more affordable for many. It’s also a great option for those who rent their homes and can’t make permanent changes.
Buying and leasing solar panels aren’t the only options.Community solar systems allow residents to enjoy the perks of New York solar power without making the upfront investment themselves. In fact, New York has invested heavily in community solar over the past several years.
Payment Method
Benefits
Drawbacks
Cash purchase
Best long-term savings, solar incentive eligibility, increased property value, lower energy bills
System ownership over time, eligible for solar incentives, increased property value, energy savings
Interest fees limit savings
Solar lease
Low upfront costs, fewer maintenance responsibilities, energy savings
No solar incentives, may need to find someone to take lease when moving, lower long-term savings
Power purchase agreement (PPA)
Low upfront costs, fewer maintenance responsibilities, energy savings
Ineligible for solar incentives, may need to pass the PPA to someone when moving, lower long-term savings
Community solar
Easy to join, no long-term commitment, great for renters or others who can’t buy, fewer maintenance responsibilities
No solar incentives, lower long-term savings
New York solar panel companies
New York residents have plenty of options to choose from for solar energy services. The good news is that it makes it easy for you to find a company that meets your needs. Before choosing a solar provider, be sure to review our solar power resources to learn more about solar energy. The more research you do upfront, the more comfortable you’ll feel when it’s finally time to choose your solar panel installer.
Solar installer
Year founded
Financing options
Warranty terms
2011
Cash purchase or solar loan
25-year manufacturer warranty and production guarantee
2009
Cash purchase, solar loan, or lease
25-year quality of work and 25-year product warranties
1985
Cash purchase, solar loan, or lease
25-year full system warranty
What to look for in a solar contractor
Before you choose your New York solar panels, you’ll need to find a reputable contractor who can install them. Your solar company will serve as a key partner not only for installation but also for choosing your equipment and exploring financing options. Make sure you read reviews and check the quality of the equipment they offer. Ensure they have warranties to support their work, and ask for their industry certifications to be sure they’re reliable.
Beware of free solar panels in New York scam
It’s possible to save a substantial amount on the upfront costs of solar panels, but they aren’t free. If you find offers for “free solar panels in New York,” they’re likely scams designed to get you to hand over your personal information or lock you into a disadvantageous contract. Don’t fall for these offers — instead, turn to SaveOnEnergy to help you navigate the solar industry and maximize your solar savings.
Roof angle and condition: According to the Department of Energy, solar panels are most effective on south-facing roofs with slopes between 15 and 40 degrees. They are also best for roofs in good condition that won’t need to be replaced soon.
Amount of sunlight: Solar panels are only worth the investment if they actually produce energy to replace at least some of your traditional electricity use. Consider the local weather patterns and whether there’s anything obstructing the sun from shining on your home.
Neighborhood rules: If you have a homeowners association, you may be subject to additional restrictions for your solar panels. Some HOAs may restrict the size of solar panels, require approval before you install them, or even prohibit them altogether.
The average cost of solar panels in New York is $21,900 before tax credits and other New York solar incentives. Keep in mind that your costs will depend on the size of your system, the solar panels you choose, your installation costs, and more.
Solar power can be an excellent investment, but it’s important to consider your particular situation. Your location, weather patterns, and energy usage habits will all be important factors in deciding whether solar power is right for you.
The amount you can save by investing in solar depends on the amount of energy your solar panels generate and your energy usage habits. New York residents pay an average electricity bill of $129.56, meaning you could save about $1,550 per year, on average. After you recover the installation costs, you could make $23,000 or more in savings over a 25-year period.
There are several great solar installers to choose from in New York, meaning you’ll have an easy time finding one that meets your needs. You can start by entering your information on this screen, and we’ll match you with a top solar installer near you.
Unlike traditional electricity generation, the production of solar energy doesn’t emit carbon dioxide that contributes to climate change. Switching to a green energy source like solar allows you to power your home with a smaller carbon footprint.
