25% state tax credit (max $5,000), NY-Sun rebates, and $5,000 income tax credit make NY one of the best solar states.
Avg residential rate21¢ / kWh
Avg system cost$3.05 / W ($28,975 for 9.5 kW)
Peak sun hours / day4.2
Net meteringFull Net Metering
State tax credit25% (max $5,000)
Federal tax credit30% (Residential Clean Energy Credit, through 2032)
Property tax exemptionYes
Sales tax exemptionYes
New York payback by monthly electric bill
The bigger your current bill, the faster solar pays back. Here's how the numbers work out for a typical New York home:
Monthly bill
System size
Gross cost
Federal credit
State credit
Net cost
Year-1 savings
Payback
$100
4.5 kW
$13,847
−$4,154
−$3,462
$6,231
$1,140
5.2 yr
$150
6.8 kW
$20,771
−$6,231
−$5,000
$9,539
$1,710
5.3 yr
$200
9.1 kW
$27,694
−$8,308
−$5,000
$14,386
$2,280
5.9 yr
$300
13.6 kW
$41,541
−$12,462
−$5,000
$24,079
$3,420
6.6 yr
Assumes 95% bill offset, 3% annual rate inflation, 0.5% annual panel degradation, and a 25-year system life.
Calculate your exact New York solar payback
Enter your real monthly electric bill to see your personalized payback estimate.
Best path forward in New York
The fastest, free way to see real installer quotes for your roof is to use a marketplace like EnergySage. You'll get up to 4 competing bids from local pros without phone harassment.
Frequently asked questions about solar in New York
How long does it take for solar panels to pay for themselves in New York?
For a typical New York home with a $150/month electric bill, a 6.8 kW system pays for itself in about 5.3 years. Higher bills (or higher state incentives) shorten this; lower bills lengthen it.
What's the average cost of solar panels in New York?
New York installers average $3.05 per watt before incentives. A typical 9.5 kW system costs roughly $28,975 gross, or about $9,539 after federal and state credits.
Does New York offer a state solar tax credit?
Yes — New York offers a 25% state tax credit, capped at $5,000. This stacks on top of the 30% federal Residential Clean Energy Credit.
Does New York have net metering?
Yes — New York has full retail net metering, meaning you get one-for-one credit for any excess solar exported to the grid. This is the most favorable arrangement for solar owners.
Are solar panels worth it in New York in 2026?
For most New York homeowners with a monthly electric bill above $100, the answer is yes — payback typically lands between 3.7 and 6.9 years depending on roof orientation, shade, and incentive timing. The 30% federal credit is locked in through 2032, removing a major timing risk.