Solar Power in New York: 2026 Costs, Incentives & Savings
Solar in New York
New York homeowners pay some of the highest electricity rates in the country — averaging 24.37 cents per kWh, well above the national average. It’s no surprise that New York ranks 4th in the nation for residential solar installations, with more homeowners exploring a smarter way to manage energy costs every year.
Whether you’re just starting to explore your options or ready to move forward, this guide walks you through everything you need to know about home solar panels in New York — how the process works, what it costs, and what to expect every step of the way.
NEW YORK by the Numbers
4th Most residential solar in the United States
204k Households have installed solar panels
4.5 Average daily peak sun hours
~$108k New York average savings over 25 years
New York Solar Panel Cost
Curious what solar actually costs in New York? We’ve built this calculator using real installation data from homes across the state — from Buffalo to Brooklyn, Albany to Long Island. See your estimated monthly lease payment through Palmetto’s LightReach program (no upfront cost) or explore a cash purchase — side by side, with local New York numbers behind every figure.
Lease Cash Purchase
System Size This system size is designed to offset approximately 100% of the average electricity usage for a home in New York.
Recommended System
9.43 kW Typical for your home size in NY
Your Monthly Payment Estimated monthly cost with LightReach
$102/mo
As low as
$102/mo
Why Lease Solar? Following the 2025 Big Beautiful Bill, the federal 30% solar tax credit is no longer available for cash purchases. With a LightReach lease, Palmetto owns the system and still qualifies for the commercial ITC — passing those savings through to you via lower monthly payments.
- No upfront investment
- Palmetto handles all maintenance
- 90% Production Guarantee
- Comprehensive protection program included
Cost Breakdown Your estimated investment
System Cost
$27,968
Cost Per Watt
$2.97/W
State Incentives
$-5,000
Final Cost
$22,968
Savings Your total financial benefit
Monthly Savings Average utility bill reduction
$247
Payback Period Break-even point
7.1 years
25-Year Savings
$108,227
Key Takeaways
- New York has some of the highest electricity rates in the country — making solar one of the smartest ways to protect your budget long-term.
- New York offers strong solar incentives, including a 25% state tax credit, a sales tax exemption, and a 15-year property tax exemption.
- Palmetto’s LightReach lease lets you go solar with no upfront cost — fixed monthly payments, no maintenance, and a 90% Production Guarantee included.
New York Electricity Prices
New York has some of the highest electricity rates in the country — and they’ve been climbing steadily for years.
From 2021 to 2024, the average electricity rate in New York jumped from 19.5¢ to 24.4¢ per kWh — a 25% increase in just four years, nearly double the rate of increase seen nationally over the same period.
Solar panels can offset a significant portion of what you draw from the grid. The more you generate at home, the less you depend on utility pricing — and the more insulated you are from future rate increases.
Programs like Palmetto’s LightReach let homeowners go solar with no upfront cost. You pay a low, fixed monthly rate instead of an unpredictable utility bill — and Palmetto owns, monitors, and maintains the system for you.
Price of Energy: New York vs National Average
| Year | New York | US Average |
|---|---|---|
| 2021 | 19.5¢ | 13.7¢ |
| 2022 | 22.1¢ | 15.0¢ |
| 2023 | 22.2¢ | 16.0¢ |
| 2024 | 24.4¢ | 16.5¢ |
Source: US Bureau of Labor Statistics, Energy Information Administration, Form 861
New York Area Utility Providers
New York has seven major electric utilities, and their rates vary widely. Based on 2023 data — the most recent available at the utility level — rates range from 15.5¢/kWh (NYSEG) to 31.6¢/kWh (Con Edison), compared to a national average of 16.0¢/kWh.
| Utility | Rate |
|---|---|
| Central Hudson | 25.10¢ |
| Con Edison | 31.60¢ |
| LIPA | 22.30¢ |
| NYSEG | 15.50¢ |
| National Grid | 17.00¢ |
| Orange & Rockland | 23.50¢ |
| RG&E | 16.10¢ |
| Source: US Energy Information Administration, 2023, Form 861, Table 6 |
New York Solar Incentives
New York homeowners have access to a strong set of solar incentives in New York — from state tax credits to property tax exemptions — that can meaningfully reduce the cost of going solar.
These include:
| Incentive | Type | Description | Source |
|---|---|---|---|
| New York State Solar Energy System Equipment Tax Credit | Tax Credit | 25% personal income tax credit on the cost of a solar energy system. | Learn More |
| NY-Sun Megawatt Block Rebate Program (Low-Income / Affordable Solar) | Rebate | Upfront per-watt rebates for qualifying low-income households. | Learn More |
| New York State Solar Sales Tax Exemption | Sales Tax Exemption | Exemption from state and most local sales and use taxes on solar purchases. | Learn More |
| Battery Storage Sales Tax Exemption | Sales Tax Exemption | Sales tax exemption on residential battery storage systems. | Learn More |
| New York State Property Tax Exemption for Solar (RPTL Section 487) | Property Tax Exemption | 100% exemption on property taxes for increased value from solar. | Learn More |
| NYC Solar Electric Generating Systems (SEGS) Property Tax Abatement | Property Tax Exemption | 30% property tax abatement for solar system costs for NYC homeowners. | Learn More |
| NYSERDA Residential Energy Storage Incentive Program | Rebate | Upfront cash rebates for battery storage installation. | Learn More |
| PSEG Long Island Battery Storage Rewards Program | Rebate | Rebate for battery storage capacity for Long Island customers. | Learn More |
| Net Metering & Value of Distributed Energy Resources (VDER) Tariff | Net Metering | Credits for solar generation through traditional net metering or VDER. | Learn More |
| NY-Sun Community Solar Program | Rebate | Community solar project participation with monthly electric bill savings. | Learn More |
| Historic Homeownership Rehabilitation Tax Credit (Solar Component) | Tax Credit | 20% state tax credit on solar installations in historic districts. | Learn More |
Ready to go solar with no money down?
Speak with a Palmetto solar expert about LightReach leasing and New York incentives.
New York Solar Irradiance
Solar panel production varies throughout the year based on daylight hours, weather patterns, and sun intensity. New York’s mix of four distinct seasons, coastal humidity, and varying daylight hours all shape solar output. But don’t let cloudy winters fool you — New York homes can still generate impressive solar energy year-round.
About the Data
This map shows average daily solar energy across New York based on historical data.
Key Facts:
- Values shown are daily averages
- Based on 18 years of satellite data
What Can the Average New York Solar System Power?
Summer Production (July)
- 45.7 kWh/day for a 10 kW system
- Powers 3.6 average New York homes (15 kWh/day per home)
Winter Production (December)
- 20.4 kWh/day for a 10 kW system
- Powers 2 average New York homes (15 kWh/day per home)
Annual Production
- Over a year, your 10 kW system could:
- Offset 10 tons of carbon dioxide emissions
- Equal the environmental benefit of planting 175 trees
- Save approximately $4,234 in electricity costs
Solar Installations in New York
Solar is spreading across New York — and your neighbors are leading the way. Palmetto compiled solar installation data from across the U.S. to build this interactive heatmap. Explore your community and see just how many New York homeowners have already made the switch to clean energy.
Go Solar with LightReach — No Upfront Cost
For most New York homeowners, Palmetto’s LightReach solar lease is the most accessible path to solar. With a lease, you pay a simple fixed monthly amount — no upfront cost, no maintenance responsibilities. Palmetto owns the system and handles everything: design, installation, permitting, and ongoing service.
Frequently Asked Questions
Does New York have net metering? Yes, New York has net metering. New York homeowners can choose Phase One Net Metering, which credits you at the full retail electricity rate for every kilowatt-hour your solar panels export to the grid.
Do solar panels increase your home value in New York? Yes — but only if you own the system outright. According to a Zillow study, homes with solar panels sell for approximately 4.1% more than comparable homes without them.
How much does it cost to go solar in New York? With Palmetto’s LightReach lease, New York homeowners can go solar for as low as $102/month — with no upfront cost.
Is solar worth it financially? For New York homeowners, solar can make strong financial sense — especially given the state’s electricity rates averaging 24.4¢/kWh.
Does solar make sense in New York? Yes, solar makes strong financial sense for New York homeowners.