Solar Panels in New York (2026 Guide)

Q: How much do solar panels cost in New York in 2026?

About $2.75–$3.30 per watt installed — roughly $14,000–$16,500 for a 5 kW system, and around $35,000 for New York's average ~12–13 kW system, before incentives. State incentives bring the net cost down significantly.

Q: Does New York have a solar tax credit?

Yes — a New York STATE income tax credit worth 25% of your system cost, capped at $5,000, with a 5-year carryforward. The 30% federal credit expired December 31, 2025 and is not available in 2026.

Q: Does New York have net metering?

Yes. Most residential customers can still get full retail (1:1) net metering in 2026, with the option to choose it over the VDER Value Stack. A small monthly Customer Benefit Contribution charge applies.

Q: Is solar worth it in New York?

For most homeowners, yes — high electricity rates plus a strong incentive stack and full net metering often produce a 5–8 year payback, even without the federal credit.

New York is one of the best states in the country for home solar in 2026 — even though the federal tax credit is gone. The state stacks a 25% state tax credit, upfront cash rebates, full net metering, and tax exemptions on top of some of the highest electricity rates in the U.S. The result: payback periods of roughly 5–8 years for many homeowners.

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How Much Do Solar Panels Cost in New York?

New York prices run a bit higher than the national average, roughly $2.75–$3.30 per watt before incentives:

5 kW system: ~$14,000–$16,500
8 kW system: ~$22,000–$26,000
12–13 kW (NY average): ~$30,000–$40,000 (around $35,000 is common)

That's the sticker price — New York's incentives bring your net cost down substantially. See our 2026 cost breakdown.

New York Solar Incentives in 2026

New York State solar tax credit — 25%

A state income tax credit worth 25% of your system cost, capped at $5,000, with up to a 5-year carryforward. This is separate from (and survives) the federal change.

NY-Sun rebate (money off at purchase)

Through NY-Sun, an upfront rebate of roughly $0.20–$0.40 per watt, deducted from your contract price at purchase, depending on utility region and current "block."

Sales tax exemption

Residential solar systems are exempt from New York State sales tax.

15-year property tax exemption

New York offers a 15-year exemption on the added home value (subject to local adoption).

What about the federal credit?

The 30% federal residential credit (Section 25D) expired December 31, 2025 and isn't available to 2026 buyers. The remaining federal benefit comes through leases and PPAs (48E through 2027). New York's own incentives are strong enough that solar still pays off without it. See our 2026 incentives guide.

Net Metering in New York — How You're Paid

New York still offers full retail net metering (1:1 credit) for most residential solar customers in 2026. The state is gradually moving toward its VDER "Value Stack", but mass-market residential customers can generally still choose net metering, which is usually the better deal. Since 2022, solar customers pay a small monthly Customer Benefit Contribution (CBC) charge based on system size — modest and already factored into payback.

Is Solar Worth It in New York?

For most homeowners, yes — one of the clearer "yes" states in 2026. Very high electricity rates (~22–25¢/kWh), a deep incentive stack (25% credit + NY-Sun + tax exemptions), and full net metering typically produce payback in about 5–8 years, even without the federal credit. A custom quote confirms your exact number.

Frequently Asked Questions

How much do solar panels cost in New York in 2026?
About $2.75–$3.30 per watt — ~$14,000–$16,500 for 5 kW, ~$35,000 for the average ~12–13 kW system. Incentives cut net cost significantly.

Does New York have a solar tax credit?
Yes — a state credit of 25% (capped $5,000, 5-year carryforward). The federal credit expired December 31, 2025.

Does New York have net metering?
Yes — most residential customers can still choose full retail (1:1); a small monthly CBC charge applies.

What is the NY-Sun rebate?
~$0.20–$0.40 per watt off your contract price, based on region and funding block.

Is solar worth it in New York?
For most homeowners, yes — typically a 5–8 year payback even without the federal credit.

Solar Energy Nerds provides general information, not tax or financial advice. Incentives and costs vary by state, utility, and household — verify current figures for your address before making a decision.